Building Details

Year Built 1950

Listing Agency: Iron Valley Real Estate c***@ironvalleyrealestate.com Show Phone

Listed By: Jocelyn Shay · License #RS323417 Show Phone

Source: Cummingsrealtors

Added: Jul 30 Changed: Sep 18 Last Checked: Sep 18 at 7:00AM

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Investment Insights

Based on property information with market context.

Originally built in 1950, this converted warehouse contains 8 apartments, 8 storage units, and a full walk-out basement. The residential mix includes two 3-bedroom, 2-bath apartments, four 2-bedroom, 2-bath apartments, and two 2-bedroom, 1-bath apartments. Seven apartments feature renovations such as luxury vinyl plank flooring, custom cabinetry, granite countertops, stainless steel appliances, recessed lighting, and updated kitchens and baths. One apartment remains available for full renovation. Each unit has its own furnace and hot water heater, while the building also includes keypad entry, a sprinkler system, and a common-area coin-operated laundry facility.

Located at 236 W Market Street in Jonestown, the property is minutes from Interstate 81, providing access to Harrisburg, Lebanon, Hershey, and surrounding employment centers. The basement offers additional space for storage units, warehouse use, or other uses subject to required approvals.

Key Highlights

• 8 apartments with a mix of 3‑bedroom and 2‑bedroom floor plans
• 7 of 8 apartments renovated with updated kitchens, baths, and modern finishes
• 8 storage units, including two currently leased

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

$108,893

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

8.38%

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%

$2,177,860 $2.2M

Cap Rate 7%

$1,555,614 $1.6M

Cap Rate 9%

$1,209,922 $1.2M

Market Conditions

NOI Build-Up for 12,672 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

$167.3K $13.20/SF

− Vacancy

−$11.7K −$0.92/SF

EGI

$155.6K $12.28/SF

− OpEx

−$46.7K −$3.68/SF

NOI

$108.9K $8.59/SF

Area

Lebanon County, PA

Vacancy

7.00%

Lease Rate

$13.20 /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%

$2,177,860

Cap Rate 7%

$1,555,614

Cap Rate 9%

$1,209,922

Alternative Uses

Best Use

Mixed Use

$1.83M

$1.60M – $2.14M (±1% cap)

NOI $128,304 @ 7.0% cap · market cap 9.87%

Second Best

Self Storage

$1.56M

$1.36M – $1.81M (±1% cap)

NOI $108,893 @ 7.0% cap · market cap 8.38%

Theoretical Best

Office A

$2.97M

$2.60M – $3.47M (±1% cap)

NOI $208,206 @ 7.0% cap · market cap 16.02%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Self storage facilities

Suggested Use

Top Pick Real Estate Agency Building Supply Restaurant Big Box & Wholesale Store HVAC Service Auto Parts Store

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

Lease Details

8

Residential units

Yes

Sprinkler system

Yes

Highway access

Location Intelligence

Trade Area within ½ mile

178

Businesses Nearby

Explore this area Business Placement

Demographics for 17038, PA

7,842

Population

3,460

Households

2.3

Avg Household Size

42

Median Age

16%

College-Educated

89%

High-School Grad

66.2 sq mi

ZIP Area

118

Density / Sq Mi

$66,698

Median Household Income

$42,929

Median Earnings

$922

Median Rent

$241,100

Median Home Value

Market

Vacancy Rate% for Industrial in Northeast region

5.4% 2019

4.6% 2020

3.2% 2021

3.3% 2022

5.3% 2023

6.6% 2024

7.6% 2025

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Frequently Asked Questions

What type of property is this?

Apartment building - Apartment property combines updated interiors with storage and expansion space.

Where is this apartment building located?

The property is located at 236 W MARKET STREET Jonestown, PA.

What is the asking price?

The asking price for this property is $1,300,000.

What are key features of this property?

This property features: 8 apartments with a mix of 3‑bedroom and 2‑bedroom floor plans; 7 of 8 apartments renovated with updated kitchens, baths, and modern finishes; 8 storage units, including two currently leased