Multi-Family Property with Nine
For Sale
$849,900
238 South 5th Street, Reading, PA 19602
Two-building multifamily with nine total units and gas heating, including at least four two-bedroom apartments.
Property Size6,206 SF
Price / SF$136.95
Days on Market554
Property Features for 238 South 5th Street
General Information
Standard status
Active
Size
6,206 SF
Property subtype
Multi-Family / Fee Simple
Zoning
MULTI
Taxes and HOA fees
Annual Taxes
$10,497
Amenities
No
Stove, Washer
No Pool
Above Grade, Below Grade
Play Area
Porch(es)
Building Details
Year Built
1900
Listing Agency:
Pagoda Realty
Listed By:
Jimmy Thelusca · License #RS333622
(610) 927-7466
Source:
Compass
Added: Mar 2, 2025
Changed: Aug 8
Last Checked: Jul 22 at 6:25AM
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 Pagoda Realty
Investment Insights
Based on property information with market context.
This two-building multifamily property totals nine (9) residential units, consisting of a front building with seven units and a rear building with two units. Each building is equipped with efficient gas heating.
The unit mix includes at least four (4) two-bedroom apartments. The remaining units are described as large one-bedroom layouts with a separate bedroom, living room, and eat-in kitchen; buyers are asked to verify.
The property is offered for sale on a high-traffic street and has historically maintained high occupancy, according to the listing remarks.
The unit mix includes at least four (4) two-bedroom apartments. The remaining units are described as large one-bedroom layouts with a separate bedroom, living room, and eat-in kitchen; buyers are asked to verify.
The property is offered for sale on a high-traffic street and has historically maintained high occupancy, according to the listing remarks.
Key Highlights
- Two‑building multifamily in Reading, totaling 9 residential units (7 in the front building, 2 in the rear building)
- Unit mix includes at least four 2‑bedroom units; the remaining units are large 1‑bedroom units with separate bedroom, living room, and eat‑in kitchen (buyer to verify)
- Each building has efficient gas heating
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
$53,477
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
6.29%
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%
$1,069,540
$1.1M
Cap Rate 7%
$763,957
$764.0K
Cap Rate 9%
$594,189
$594.2K
Market Conditions
NOI Build-Up for 6,206 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
$101.3K $16.32/SF
− Vacancy
−$4.1K −$0.65/SF
EGI
$97.2K $15.67/SF
− OpEx
−$43.8K −$7.05/SF
NOI
$53.5K $8.62/SF
Area
Berks County, PA
Vacancy
4.00%
Lease Rate
$16.32 /SF/Yr
Expense Ratio
45.00%
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%
$1,069,540
Cap Rate 7%
$763,957
Cap Rate 9%
$594,189
Alternative Uses
Best Use
Apartment 5plus
$764.0K
$668.5K – $891.3K
NOI $53,477 @ 7.0% cap · market cap 6.29%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.02M
$891.4K – $1.19M
NOI $71,314 @ 7.0% cap · market cap 8.39%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
529
Businesses Nearby
Explore this area
Business Placement
Demographics for 19602, PA
19,782
Population
7,907
Households
2.5
Avg Household Size
32
Median Age
11%
College-Educated
71%
High-School Grad
2.0 sq mi
ZIP Area
9,891
Density / Sq Mi
$38,179
Median Household Income
$30,848
Median Earnings
$978
Median Rent
$73,000
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?
Apartment building - Two-building multifamily with nine total units and gas heating, including at least four two-bedroom apartments.
Where is this apartment building located?
The property is located at 238 South 5th Street Reading, PA.
What is the asking price?
The asking price for this property is $849,900.
What are key features of this property?
This property features: Two‑building multifamily in Reading, totaling 9 residential units (7 in the front building, 2 in the rear building); Unit mix includes at least four 2‑bedroom units; the remaining units are large 1‑bedroom units with separate bedroom, living room, and eat‑in kitchen (buyer to verify); Each building has efficient gas heating
