Multifamily Building with
For Sale
Contact for pricing
2440 Kensington Ave, Philadelphia, PA 19125
10 two-bedroom apartments plus a separate 2,500-square-foot commercial unit and three parking spaces.
Property Size10,428 SF
Price / SF$213.37
Days on Market140
Property Features for 2440 Kensington Ave
General Information
Standard status
Active
Size
10,428 SF
Total Parking Spaces
3
Property subtype
Multifamily
Zoning
CMX2 Neighborhood Commercial Mixed-Use-2
Occupancy
95%
Investment Type
Stabilized
Net Operating Income
$162,743
Additional Details
Cap Rate
7.31%
Multifamily Units
10
Building Details
Year Built
2020
Buildings
1
Stories
3
Units
10
Listing Agency:
Trophy Commercial Real Estate
Listed By:
Saam Tashayyod · License #PA RM425803
(215) 608-5745
Source:
Crexi
Added: Apr 20
Changed: Sep 4
Last Checked: Sep 5 at 8:40AM
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 Trophy Commercial Real Estate
Investment Insights
Based on property information with market context.
2440 Kensington Avenue is a 10-unit multifamily property that also includes a dedicated commercial space. The residential portion consists of 10 two-bedroom apartments totaling approximately 7,928 square feet of rentable area, supported by a uniform unit layout. The property also offers a 2,500-square-foot commercial unit and three parking spaces.
The building is located at 2440 Kensington Ave in Philadelphia’s Kensington neighborhood. For sale, it presents an owner with both residential and commercial rental components in a single asset.
The property’s mix of apartment units and a sizable commercial space, along with on-site parking, supports straightforward day-to-day operations for an investor or owner-operator.
The building is located at 2440 Kensington Ave in Philadelphia’s Kensington neighborhood. For sale, it presents an owner with both residential and commercial rental components in a single asset.
The property’s mix of apartment units and a sizable commercial space, along with on-site parking, supports straightforward day-to-day operations for an investor or owner-operator.
Key Highlights
- 10‑unit multifamily property plus separate 2,500 SF commercial unit
- Built in 2020 with 10 two‑bedroom apartments totaling approx. 7,928 SF of rentable space
- Includes 3 parking spaces for tenant and/or commercial use
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
$164,027
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
7.37%
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%
$3,280,540
$3.3M
Cap Rate 7%
$2,343,243
$2.3M
Cap Rate 9%
$1,822,522
$1.8M
Market Conditions
NOI Build-Up for 10,428 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
$316.6K $30.36/SF
− Vacancy
−$18.4K −$1.76/SF
EGI
$298.2K $28.60/SF
− OpEx
−$134.2K −$12.87/SF
NOI
$164.0K $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%
$3,280,540
Cap Rate 7%
$2,343,243
Cap Rate 9%
$1,822,522
Alternative Uses
Best Use
Apartment 5plus
$2.34M
$2.05M – $2.73M
NOI $164,027 @ 7.0% cap · market cap 7.37%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$2.54M
$2.22M – $2.97M
NOI $177,953 @ 7.0% cap · market cap 8.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
10
Residential units
Location Intelligence
Trade Area within ½ mile
2,554
Businesses Nearby
Explore this area
Business Placement
Demographics for 19125, PA
25,325
Population
13,055
Households
1.9
Avg Household Size
34
Median Age
64%
College-Educated
94%
High-School Grad
1.4 sq mi
ZIP Area
18,089
Density / Sq Mi
$110,842
Median Household Income
$62,656
Median Earnings
$1,743
Median Rent
$373,600
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 - 10 two-bedroom apartments plus a separate 2,500-square-foot commercial unit and three parking spaces.
Where is this apartment building located?
The property is located at 2440 Kensington Ave Philadelphia, PA.
What is the asking price?
The asking price for this property is $2,225,000.
What are key features of this property?
This property features: 10‑unit multifamily property plus separate 2,500 SF commercial unit; Built in 2020 with 10 two‑bedroom apartments totaling approx. 7,928 SF of rentable space; Includes 3 parking spaces for tenant and/or commercial use
