Mixed-Use Property with
New
For Sale
$1,500,000
240 - 244 RAILROAD Avenue, Bird in Hand, PA 17505
Multi-Family, BIRD IN HAND, PA
Property Size8,034 SF
Lot Size1.23 Acres
Price / SF$186.71
Days on Market7
Property Features for 240 - 244 RAILROAD Avenue
General Information
Property type
Residential Multi Family
Property subtype
Other
Parking
27
Parking features
Driveway, Garage - Detached
Interior features
Attic
Fireplace
1
High school
CONESTOGA VALLEY
Elementary school district
CONESTOGA VALLEY
Middle school district
CONESTOGA VALLEY
High school district
CONESTOGA VALLEY
Standard status
Active
Size
8,034 SF
Lot size
1.23 Acres
Taxes and HOA fees
Tax Annual Amount
11610
Utilities
Heating system
Hot Water(Heating), Radiant
Cooling system
Window Unit(s)
Building Details
Year built
1879
Number of units
4
Building materials
Frame, Vinyl Siding, Block, Concrete
Architectural style
Other
Listing Agency:
Berkshire Hathaway HomeServices Homesale Realty
(717) 560-9100
Listed By:
Ken Kirchoff · License #RS287964
(717) 286-9714
Added: Aug 17
Changed: Aug 20
Last Checked: Aug 23 at 12:06AM
MLS# PALA2093802
Copyright © 2026 Bright MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This mixed-use property combines two residential homes with substantial commercial and accessory improvements. One 2-story residence contains 3 bedrooms, 1 bath, and 1,400 finished square feet; the second offers 5 bedrooms, 2 baths, and 3,137 finished square feet across two stories. The larger home is owner occupied, while the smaller residence has a long-term tenant. A separate warehouse and office building provides approximately 7,000 square feet with 15–16-foot ceilings. An additional approximately 2,200-square-foot steel building includes 4+ horse stalls.
The property encompasses 1.23 acres at 240–244 Railroad Avenue in Bird in Hand, Lancaster County, Pennsylvania. BH zoning supports the existing combination of manufacturing and servicing business use with residential occupancy and allows multiple other use types. Improvements include frame, vinyl siding, block, and concrete construction, along with radiant and hot-water heating, window-unit cooling, a detached garage, driveway parking, and a fireplace.
The property encompasses 1.23 acres at 240–244 Railroad Avenue in Bird in Hand, Lancaster County, Pennsylvania. BH zoning supports the existing combination of manufacturing and servicing business use with residential occupancy and allows multiple other use types. Improvements include frame, vinyl siding, block, and concrete construction, along with radiant and hot-water heating, window-unit cooling, a detached garage, driveway parking, and a fireplace.
Key Highlights
- 1.23‑acre mixed‑use property at 240–244 Railroad Avenue, Bird in Hand, PA 17505
- Two residential homes with 3 bedrooms/1 bath and 5 bedrooms/2 baths
- Approximately 7,000 sq ft warehouse/office building with 15–16 ft ceilings
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
$99,782
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
6.65%
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%
$1,995,640
$2.0M
Cap Rate 7%
$1,425,457
$1.4M
Cap Rate 9%
$1,108,689
$1.1M
Market Conditions
NOI Build-Up for 8,034 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
$173.5K $21.60/SF
− Vacancy
−$13.9K −$1.73/SF
EGI
$159.7K $19.87/SF
− OpEx
−$59.9K −$7.45/SF
NOI
$99.8K $12.42/SF
Area
Lancaster County, PA
Vacancy
8.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
37.50%
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%
$1,995,640
Cap Rate 7%
$1,425,457
Cap Rate 9%
$1,108,689
Alternative Uses
Best Use
Mixed Use
$1.43M
$1.25M – $1.66M
NOI $99,782 @ 7.0% cap · market cap 6.65%
Second Best
Apartment 5plus
$1.13M
$989.2K – $1.32M
NOI $79,139 @ 7.0% cap · market cap 5.28%
Theoretical Best
Office A
$2.69M
$2.36M – $3.14M
NOI $188,457 @ 7.0% cap · market cap 12.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
16 ft
Clear height
Location Intelligence
Trade Area within ½ mile
134
Businesses Nearby
Explore this area
Business Placement
Demographics for 17505, PA
2,018
Population
564
Households
3.6
Avg Household Size
28
Median Age
12%
College-Educated
64%
High-School Grad
7.4 sq mi
ZIP Area
273
Density / Sq Mi
$109,514
Median Household Income
$38,033
Median Earnings
$1,609
Median Rent
$373,600
Median Home Value
Market
Vacancy Rate% for Industrial in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Three-unit property combining residences, business space, and a separate steel building on 1.23 acres.
Where is this mixed-use property located?
The property is located at 240 - 244 RAILROAD Avenue Bird in Hand, PA.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: 1.23‑acre mixed‑use property at 240–244 Railroad Avenue, Bird in Hand, PA 17505; Two residential homes with 3 bedrooms/1 bath and 5 bedrooms/2 baths; Approximately 7,000 sq ft warehouse/office building with 15–16 ft ceilings
