Mixed-Use Building with
For Sale
$319,000
2403 E SOMERSET STREET, Philadelphia, PA 19134
Two-level commercial property combining a restaurant operation with an apartment above.
Property Size1,250 SF
Price / SF$255.20
Days on Market17
Property Features for 2403 E SOMERSET STREET
General Information
Standard status
Active
Size
1,250 SF
Property subtype
Commercial
Additional Details
Floor
1
Multifamily Units
1
Building Details
Year Built
1920
Listing Agency:
20/20 Real Estate - Bensalem
(267) 586-2828
Listed By:
Bryan Weng · License #AB069638
(267) 586-2828
Source:
Cummingsrealtors
Added: Jul 26
Changed: Aug 11
Last Checked: Aug 11 at 6:41AM
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 20/20 Real Estate - Bensalem
Investment Insights
Based on property information with market context.
This mixed-use property combines a restaurant on the ground floor with an apartment on the level above. The restaurant is fully equipped and is operated by a long-term commercial tenant, providing an existing commercial use within the building. Constructed in 1920, the property is located at 2403 E Somerset Street in Philadelphia, Pennsylvania.
Key Highlights
- Ground‑floor restaurant with equipment in place
- Apartment located above the commercial space
- Restaurant operated by a long‑term commercial tenant
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
$19,662
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
6.16%
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%
$393,240
$393.2K
Cap Rate 7%
$280,886
$280.9K
Cap Rate 9%
$218,467
$218.5K
Market Conditions
NOI Build-Up for 1,250 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
$38.0K $30.36/SF
− Vacancy
−$2.2K −$1.76/SF
EGI
$35.7K $28.60/SF
− OpEx
−$16.1K −$12.87/SF
NOI
$19.7K $15.73/SF
Area
Philadelphia, PA
Vacancy
5.80%
Lease Rate
$30.36 /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%
$393,240
Cap Rate 7%
$280,886
Cap Rate 9%
$218,467
Alternative Uses
Best Use
Apartment 5plus
$280.9K
$245.8K – $327.7K
NOI $19,662 @ 7.0% cap · market cap 6.16%
Second Best
Specialty Retail
$258.8K
$226.4K – $301.9K
NOI $18,113 @ 7.0% cap · market cap 5.68%
Theoretical Best
Multifamily LT 5
$304.7K
$266.6K – $355.5K
NOI $21,331 @ 7.0% cap · market cap 6.69%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
2,017
Businesses Nearby
57k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 44%
Dining 42%
Groceries 13%
Beauty & Spa 1%
Wendy's
Dining
17,024 visits/mo
0.5 miles
Sunoco
Shops & Services
13,336 visits/mo
0.5 miles
Sunoco
Shops & Services
11,637 visits/mo
0.1 miles
Save-A-Lot
Groceries
7,621 visits/mo
0.4 miles
Pizza Hut
Dining
6,204 visits/mo
0.5 miles
Demographics for 19134, PA
57,463
Population
25,290
Households
2.3
Avg Household Size
33
Median Age
18%
College-Educated
77%
High-School Grad
3.4 sq mi
ZIP Area
16,901
Density / Sq Mi
$41,849
Median Household Income
$35,858
Median Earnings
$1,179
Median Rent
$127,500
Median Home Value
Market
Vacancy Rate% for Retail in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-level commercial property combining a restaurant operation with an apartment above.
Where is this mixed-use property located?
The property is located at 2403 E SOMERSET STREET Philadelphia, PA.
What is the asking price?
The asking price for this property is $319,000.
What are key features of this property?
This property features: Ground‑floor restaurant with equipment in place; Apartment located above the commercial space; Restaurant operated by a long‑term commercial tenant
