Building Details

Building Size 11,549 SF

Year Built 1970

Listing Agency: U.S. Commercial Realty m***@uscommercialrealty.net Show Phone

Listed By: Matthew M Czaus · License #RS331302 Show Phone

Source: Evrealestate

Added: Jun 2, 2025 Changed: Aug 31 Last Checked: Aug 31 at 3:02PM

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Investment Insights

Based on property information with market context.

This hotel property was built in 1970 and includes 11,549 of reported property size. Interior systems include forced-air heating powered by electricity. The asset is identified for hotel use and is situated within Leacock Township zoning jurisdiction.

The property is located at 3063 Lincoln Hwy E in Paradise, Pennsylvania, in Lancaster County. Access is provided from Route 462, also known as Lincoln Highway East, which merges into Route 30 East after approximately 9.0 miles. The property is positioned on the left along that route.

Key Highlights

• Hotel property built in 1970
• 11,549 reported property size
• Forced‑air interior system

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

$88,870

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

5.08%

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%

$1,777,400 $1.8M

Cap Rate 7%

$1,269,571 $1.3M

Cap Rate 9%

$987,444 $987.4K

Market Conditions

NOI Build-Up for 11,549 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

$207.9K $18.00/SF

− Vacancy

−$20.8K −$1.80/SF

EGI

$187.1K $16.20/SF

− OpEx

−$98.2K −$8.51/SF

NOI

$88.9K $7.69/SF

Area

Lancaster County, PA

Vacancy

10.00%

Lease Rate

$18.00 /SF/Yr

Expense Ratio

52.50%

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%

$1,777,400

Cap Rate 7%

$1,269,571

Cap Rate 9%

$987,444

Alternative Uses

Best Use

Hotel Hospitality

$1.27M

$1.11M – $1.48M (±1% cap)

NOI $88,870 @ 7.0% cap · market cap 5.08%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$3.87M

$3.39M – $4.52M (±1% cap)

NOI $270,910 @ 7.0% cap · market cap 15.48%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Cardtronics ATM Atm Best Western Plus ... Hotel & Motel Historic Revere Tavern Restaurant

Suggested Use

Top Pick Electrical Service Real Estate Agency (Bike/Boat/Book/etc) Store Grocery & Convenience Store Furniture & Home Goods Garden Center

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

130

Businesses Nearby

Explore this area Business Placement

Demographics for 17562, PA

4,655

Population

1,229

Households

3.8

Avg Household Size

29

Median Age

13%

College-Educated

56%

High-School Grad

17.2 sq mi

ZIP Area

271

Density / Sq Mi

$105,117

Median Household Income

$43,391

Median Earnings

$1,087

Median Rent

$340,800

Median Home Value

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Frequently Asked Questions

What type of property is this?

Hotel - Lancaster County hotel property with electric forced-air service and convenient access from Lincoln Highway East.

Where is this hotel located?

The property is located at 3063 Lincoln Hwy E Paradise, PA.

What is the asking price?

The asking price for this property is $1,750,000.

What are key features of this property?

This property features: Hotel property built in 1970; 11,549 reported property size; Forced‑air interior system