Upscale Multifamily Investment
For Sale
Contact for pricing
241 S 5th St, Reading, PA 19602
Professionally designed, fully remodeled 6-unit building with modern amenities.
Property Size5,662 SF
Price / SF$264.92
Days on Market174
Property Features for 241 S 5th St
General Information
Standard status
Active
Size
5,662 SF
Property subtype
Multifamily
Occupancy
83%
Building Details
Year Built
1900
Year Renovated
2024
Buildings
1
Stories
3
Units
6
Listing Agency:
Coldwell Banker Residential Brokerage
Listed By:
Jerry Buffa · License #RS279987
Source:
Crexi
Added: Feb 18
Changed: Aug 8
Last Checked: Aug 8 at 10:08AM
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 Coldwell Banker Residential Brokerage
Investment Insights
Based on property information with market context.
This is a 5,662 square foot, six-unit multifamily property that has been reconstructed from top to bottom. It was designed for professionals and offers an upscale living experience. The building has been completely insulated and remodeled with noise reduction features. It includes a sprinkler system, a state-of-the-art intercom system, secure parking and access, a laundry room, and a fitness center. Each unit features open-concept layouts, designer kitchens, and spacious bedrooms, with an abundance of natural light.
Key Highlights
- Fully reconstructed/remodeled building with upscale living experience.
- Potential for professional short‑term rental income.
- Noise reduction features and complete insulation.
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
$48,789
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
3.25%
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%
$975,780
$975.8K
Cap Rate 7%
$696,986
$697.0K
Cap Rate 9%
$542,100
$542.1K
Market Conditions
NOI Build-Up for 5,662 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
$92.4K $16.32/SF
− Vacancy
−$3.7K −$0.65/SF
EGI
$88.7K $15.67/SF
− OpEx
−$39.9K −$7.05/SF
NOI
$48.8K $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%
$975,780
Cap Rate 7%
$696,986
Cap Rate 9%
$542,100
Alternative Uses
Best Use
Apartment 5plus
$697.0K
$609.9K – $813.2K
NOI $48,789 @ 7.0% cap · market cap 3.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$929.5K
$813.3K – $1.08M
NOI $65,063 @ 7.0% cap · market cap 4.34%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,746
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 - Professionally designed, fully remodeled 6-unit building with modern amenities.
Where is this apartment building located?
The property is located at 241 S 5th St Reading, 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: Fully reconstructed/remodeled building with upscale living experience.; Potential for professional short‑term rental income.; Noise reduction features and complete insulation.
