Mixed-Use Building with
For Sale
$650,000
226 N 10th St, Reading, PA 19601
Well-maintained mixed-use building with a vacant storefront and seven residential units, including one apartment in progress.
Property Size3,000 SF
Price / SF$216.67
Days on Market48
Property Features for 226 N 10th St
General Information
Standard status
Active
Size
3,000 SF
Additional Details
Multifamily Units
7
Building Details
Year Built
1900
Listing Agency:
Iron Valley Real Estate of Berks
Listed By:
Veronica Palmer · License #RS350596
(484) 663-9476
Source:
Kandorre
Added: Jul 21
Changed: Aug 8
Last Checked: Sep 5 at 10:27AM
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 Iron Valley Real Estate of Berks
Investment Insights
Based on property information with market context.
This mixed-use property includes a vacant commercial storefront and seven residential units, with six units currently occupied. The residential mix consists of six 1-bedroom apartments and one 2-bedroom apartment, and the units have had updates completed during the ownership period. In addition, an apartment is already in progress behind the storefront, creating an expanded residential configuration for a future owner to complete.
The side alley provides private access related to the rear apartment construction, and it also offers separate access to the 2-bedroom unit. The property is managed to support functionality across its mixed-use setup.
For showings, 24-hour notice is required.
The side alley provides private access related to the rear apartment construction, and it also offers separate access to the 2-bedroom unit. The property is managed to support functionality across its mixed-use setup.
For showings, 24-hour notice is required.
Key Highlights
- Mixed‑use building built in 1900 with a vacant commercial storefront and 7 residential units
- 6 of 7 residential units are occupied, including six 1‑bedroom apartments and one 2‑bedroom apartment
- An additional apartment is already in progress behind the commercial storefront
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
$30,418
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
4.68%
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%
$608,360
$608.4K
Cap Rate 7%
$434,543
$434.5K
Cap Rate 9%
$337,978
$338.0K
Market Conditions
NOI Build-Up for 3,000 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
$45.4K $15.12/SF
− Vacancy
−$1.9K −$0.64/SF
EGI
$43.5K $14.48/SF
− OpEx
−$13.0K −$4.35/SF
NOI
$30.4K $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%
$608,360
Cap Rate 7%
$434,543
Cap Rate 9%
$337,978
Alternative Uses
Best Use
Retail
$434.5K
$380.2K – $507.0K
NOI $30,418 @ 7.0% cap · market cap 4.68%
Second Best
Mixed Use
$424.3K
$371.3K – $495.0K
NOI $29,700 @ 7.0% cap · market cap 4.57%
Theoretical Best
Office A
$492.5K
$430.9K – $574.6K
NOI $34,474 @ 7.0% cap · market cap 5.30%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
7
Residential units
Location Intelligence
Trade Area within ½ mile
2,346
Businesses Nearby
Explore this area
Business Placement
Demographics for 19601, PA
35,477
Population
14,024
Households
2.5
Avg Household Size
34
Median Age
12%
College-Educated
73%
High-School Grad
3.8 sq mi
ZIP Area
9,336
Density / Sq Mi
$41,133
Median Household Income
$30,433
Median Earnings
$986
Median Rent
$110,700
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Well-maintained mixed-use building with a vacant storefront and seven residential units, including one apartment in progress.
Where is this mixed-use property located?
The property is located at 226 N 10th St Reading, PA.
What is the asking price?
The asking price for this property is $650,000.
What are key features of this property?
This property features: Mixed‑use building built in 1900 with a vacant commercial storefront and 7 residential units; 6 of 7 residential units are occupied, including six 1‑bedroom apartments and one 2‑bedroom apartment; An additional apartment is already in progress behind the commercial storefront
