Listing Agency: Zommick McMahon Commercial Real Estate Show Phone

Listed By: Steve Dibattista · License #PA327769 Show Phone

Source: Moodyscre

Added: Nov 4, 2025 Changed: Aug 8 Last Checked: Aug 8 at 12:28PM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Zommick McMahon Commercial Real Estate

Investment Insights

Based on property information with market context.

This iconic commercial property, originally built in 1900, is located in Washington Township. The property features a 5,728 square-foot, two-story restaurant building with a wraparound porch. The restaurant can accommodate up to 94 guests and includes a recently updated bar. Additionally, the property includes 12 updated hotel rooms, with average rents of $700 to $800 per month. An H liquor license is included in the sale. There is parking available for 30 cars.

Key Highlights

• Iconic commercial property originally built in 1900.
• 5,728 SF 2 Story Restaurant Building with seating for up to 94 guests.
• H liquor license included in the sale.

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$58,079

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

7.26%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,161,580 $1.2M

Cap Rate 7%

$829,700 $829.7K

Cap Rate 9%

$645,322 $645.3K

Market Conditions

NOI Build-Up for 5,728 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$86.6K $15.12/SF

− Vacancy

−$3.6K −$0.64/SF

EGI

$83.0K $14.48/SF

− OpEx

−$24.9K −$4.35/SF

NOI

$58.1K $10.14/SF

Area

Berks County, PA

Vacancy

4.20%

Lease Rate

$15.12 /SF/Yr

Expense Ratio

30.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$1,161,580

Cap Rate 7%

$829,700

Cap Rate 9%

$645,322

Alternative Uses

Best Use

Retail

$829.7K

$726.0K – $968.0K (±1% cap)

NOI $58,079 @ 7.0% cap · market cap 7.26%

Second Best

Specialty Retail

$814.3K

$712.5K – $950.0K (±1% cap)

NOI $56,998 @ 7.0% cap · market cap 7.13%

Theoretical Best

Office A

$940.3K

$822.8K – $1.10M (±1% cap)

NOI $65,822 @ 7.0% cap · market cap 8.23%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Hotels

Suggested Use

Top Pick Real Estate Agency Restaurant Electrical Service Kitchen & Bath Showroom Garden Center Furniture & Home Goods

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

80

Businesses Nearby

Explore this area Business Placement

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

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Frequently Asked Questions

What type of property is this?

Hotel - Iconic restaurant with updated hotel rooms and liquor license.

Where is this hotel located?

The property is located at 2116 Old Route 100 Bechtelsville, PA.

What is the asking price?

The asking price for this property is $799,900.

What are key features of this property?

This property features: Iconic commercial property originally built in 1900.; 5,728 SF 2 Story Restaurant Building with seating for up to 94 guests.; H liquor license included in the sale.