Two-Story Mixed-Use
For Sale
$168,000
2948 REED STREET, Philadelphia, PA 19146
Office space occupies the ground level, with a two-bedroom apartment above.
Property Size1,188 SF
Days on Market11
Property Features for 2948 REED STREET
General Information
Standard status
Active
Size
1,188 SF
Property subtype
Duplex
Units
Unit Mix
1 x 2BR
Multifamily Units
1
Additional Details
Floor
First Floor
Taxes and HOA fees
Annual Taxes
$2,073
Building Details
Building Size
1,188 SF
Year Built
1923
Buildings
1
Stories
2
Listing Agency:
HK99 Realty LLC
(215) 917-9833
Listed By:
Feng Wang · License #RS314664
(215) 917-9833
Source:
Patmckennarealtors
Added: Aug 3
Changed: Aug 11
Last Checked: Aug 12 at 2:01PM
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 HK99 Realty LLC
Investment Insights
Based on property information with market context.
Built in 1923, this two-story mixed-use property combines commercial and residential components within one building. The first floor is configured for office use, while the upper level contains a two-bedroom apartment.
The property is located at 2948 Reed Street in Philadelphia, Pennsylvania 19146. The sale is offered on an AS-IS conditional basis.
The property is located at 2948 Reed Street in Philadelphia, Pennsylvania 19146. The sale is offered on an AS-IS conditional basis.
Key Highlights
- Mixed‑use building with office and residential components
- Ground‑floor office configuration
- Two‑bedroom apartment on the second floor
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
$14,113
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
8.40%
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%
$282,260
$282.3K
Cap Rate 7%
$201,614
$201.6K
Cap Rate 9%
$156,811
$156.8K
Market Conditions
NOI Build-Up for 1,188 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
$25.7K $21.60/SF
− Vacancy
−$3.1K −$2.59/SF
EGI
$22.6K $19.01/SF
− OpEx
−$8.5K −$7.13/SF
NOI
$14.1K $11.88/SF
Area
Philadelphia, PA
Vacancy
12.00%
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%
$282,260
Cap Rate 7%
$201,614
Cap Rate 9%
$156,811
Alternative Uses
Best Use
Apartment 5plus
$267.0K
$233.6K – $311.5K
NOI $18,687 @ 7.0% cap · market cap 11.12%
Second Best
Office B
$223.3K
$195.4K – $260.6K
NOI $15,634 @ 7.0% cap · market cap 9.31%
Theoretical Best
Multifamily LT 5
$289.6K
$253.4K – $337.9K
NOI $20,273 @ 7.0% cap · market cap 12.07%
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
1,091
Businesses Nearby
Explore this area
Business Placement
Demographics for 19146, PA
41,920
Population
22,182
Households
1.9
Avg Household Size
34
Median Age
65%
College-Educated
94%
High-School Grad
1.7 sq mi
ZIP Area
24,659
Density / Sq Mi
$99,702
Median Household Income
$68,849
Median Earnings
$1,708
Median Rent
$452,200
Median Home Value
Market
Vacancy Rate% for Office in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Office space occupies the ground level, with a two-bedroom apartment above.
Where is this mixed-use property located?
The property is located at 2948 REED STREET Philadelphia, PA.
What is the asking price?
The asking price for this property is $168,000.
What are key features of this property?
This property features: Mixed‑use building with office and residential components; Ground‑floor office configuration; Two‑bedroom apartment on the second floor
