Dental 365 Investment
For Sale
Contact for pricing
2137 Welsh Rd, Philadelphia, PA 19115
Single-tenant medical office condo in Philadelphia with long-term lease.
Property Size3,625 SF
Price / SF$391.72
Days on Market183
Property Features for 2137 Welsh Rd
General Information
Standard status
Active
Size
3,625 SF
Property subtype
Office
Occupancy
100%
Lease Type
Modified Gross
Investment Type
Net Lease
Building Details
Year Built
1983
Year Renovated
2015
Units
1
Tenancy
Single
Listing Agency:
MSC Retail
Listed By:
Jesse Dubrow · License #RS362355
(215) 568-2600
Source:
Crexi
Added: Mar 5
Changed: Aug 25
Last Checked: Sep 2 at 4:10PM
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 MSC Retail
Investment Insights
Based on property information with market context.
This single-tenant investment opportunity is leased to Dental 365, a dental support organization with over 160 practices nationwide. The asset is a medical office condominium located along Welsh Road, with high visibility and traffic counts of 22,344 vehicles per day. Situated just off Roosevelt Boulevard (U.S. Route 1), the property benefits from traffic counts of 39,274 vehicles per day, providing regional accessibility throughout Northeast Philadelphia. The property is in Northeast Philadelphia, a densely populated residential submarket, with a strong demographic profile and consistent healthcare demand. The immediate trade area features stable household incomes and a dense population base. Dental 365 recently acquired the dental practice at this location, which has operated at the site for over 10 years and as a practice for over 60 years. The lease provides six years of remaining term on the initial seven-year agreement, with one five-year renewal option and 2.5% annual rental escalations. The property size is 3625 square feet.
Key Highlights
- Single‑tenant investment opportunity leased to Dental 365, a premier New York‑based Dental Support Organization (DSO) with over 160 practices nationwide.
- Corporate‑backed guarantee from Prem.
- Located in a densely populated and established residential submarket of Northeast Philadelphia with strong demographics and consistent healthcare demand.
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
$47,703
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
3.36%
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%
$954,060
$954.1K
Cap Rate 7%
$681,471
$681.5K
Cap Rate 9%
$530,033
$530.0K
Market Conditions
NOI Build-Up for 3,625 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
$79.6K $21.96/SF
− Vacancy
−$16.0K −$4.41/SF
EGI
$63.6K $17.55/SF
− OpEx
−$15.9K −$4.39/SF
NOI
$47.7K $13.16/SF
Area
Philadelphia, PA
Vacancy
20.10%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
25.00%
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%
$954,060
Cap Rate 7%
$681,471
Cap Rate 9%
$530,033
Alternative Uses
Best Use
Office B
$681.5K
$596.3K – $795.1K
NOI $47,703 @ 7.0% cap · market cap 3.36%
Second Best
Healthcare Medical
$671.1K
$587.3K – $783.0K
NOI $46,980 @ 7.0% cap · market cap 3.31%
Theoretical Best
Multifamily LT 5
$883.7K
$773.3K – $1.03M
NOI $61,860 @ 7.0% cap · market cap 4.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,486
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 19115, PA
35,919
Population
15,071
Households
2.4
Avg Household Size
44
Median Age
37%
College-Educated
92%
High-School Grad
5.2 sq mi
ZIP Area
6,908
Density / Sq Mi
$70,388
Median Household Income
$48,949
Median Earnings
$1,230
Median Rent
$330,500
Median Home Value
Market
Vacancy Rate% for Office in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Medical Office Space - Single-tenant medical office condo in Philadelphia with long-term lease.
Where is this medical office space located?
The property is located at 2137 Welsh Rd Philadelphia, PA.
What is the asking price?
The asking price for this property is $1,420,000.
What are key features of this property?
This property features: Single‑tenant investment opportunity leased to Dental 365, a premier New York‑based Dental Support Organization (DSO) with over 160 practices nationwide.; Corporate‑backed guarantee from Prem.; Located in a densely populated and established residential submarket of Northeast Philadelphia with strong demographics and consistent healthcare demand.
