Renovated Two-Unit
For Sale
$259,000
265 N FRONT STREET, Reading, PA 19601
The property includes two residential units, off-street parking, and tenant-paid utilities.
Property Size1,692 SF
Price / SF$153.07
Days on Market10
Property Features for 265 N FRONT STREET
General Information
Standard status
Active
Size
1,692 SF
Property subtype
Duplex
Units
Unit Mix
1 x 2BR, 1 x 4BR
Multifamily Units
2
Additional Details
Cap Rate
9.5%
Building Details
Year Built
1900
Buildings
1
Listing Agency:
Iron Valley Real Estate of Berks
(610) 780-3024
Listed By:
John H Gantkowski Jr. · License #rs299403
(610) 780-3024
Source:
Cummingsrealtors
Added: Aug 23
Changed: Aug 31
Last Checked: Aug 31 at 3:39PM
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 Iron Valley Real Estate of Berks
Investment Insights
Based on property information with market context.
Located at 265 N Front St in Reading, Pennsylvania, this renovated duplex contains two residential units within a 1,692-square-foot building constructed in 1900. The first-floor residence has two bedrooms, while the second-floor residence includes four bedrooms, providing distinct layouts within the same property.
Off-street parking serves the building, and tenants are responsible for all utilities. The property is offered for sale with a reported 9.5% cap rate, supporting its profile as a small residential income asset.
Off-street parking serves the building, and tenants are responsible for all utilities. The property is offered for sale with a reported 9.5% cap rate, supporting its profile as a small residential income asset.
Key Highlights
- Renovated two‑unit duplex at 265 N Front St, Reading, PA 19601
- 1,692‑square‑foot building constructed in 1900
- First‑floor unit has 2 bedrooms
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
$16,681
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
6.44%
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%
$333,620
$333.6K
Cap Rate 7%
$238,300
$238.3K
Cap Rate 9%
$185,344
$185.3K
Market Conditions
NOI Build-Up for 1,692 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
$24.8K $14.64/SF
− Vacancy
−$941 −$0.56/SF
EGI
$23.8K $14.08/SF
− OpEx
−$7.1K −$4.23/SF
NOI
$16.7K $9.86/SF
Area
Berks County, PA
Vacancy
3.80%
Lease Rate
$14.64 /SF/Yr
Expense Ratio
30.00%
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%
$333,620
Cap Rate 7%
$238,300
Cap Rate 9%
$185,344
Alternative Uses
Best Use
Multifamily LT 5
$238.3K
$208.5K – $278.0K
NOI $16,681 @ 7.0% cap · market cap 6.44%
Second Best
Apartment 5plus
$208.3K
$182.3K – $243.0K
NOI $14,580 @ 7.0% cap · market cap 5.63%
Theoretical Best
Office A
$277.8K
$243.0K – $324.1K
NOI $19,443 @ 7.0% cap · market cap 7.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
2,121
Businesses Nearby
Explore this area
Business Placement
Demographics for 19601, PA
35,477
Population
14,024
Households
2.5
Avg Household Size
34
Median Age
12%
College-Educated
73%
High-School Grad
3.8 sq mi
ZIP Area
9,336
Density / Sq Mi
$41,133
Median Household Income
$30,433
Median Earnings
$986
Median Rent
$110,700
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?
Duplex - The property includes two residential units, off-street parking, and tenant-paid utilities.
Where is this duplex located?
The property is located at 265 N FRONT STREET Reading, PA.
What is the asking price?
The asking price for this property is $259,000.
What are key features of this property?
This property features: Renovated two‑unit duplex at 265 N Front St, Reading, PA 19601; 1,692‑square‑foot building constructed in 1900; First‑floor unit has 2 bedrooms
