Five-Unit Apartment
For Sale
Contact for pricing
318 S 42ND ST, Philadelphia, PA 19104
Four-story masonry property near the University of Pennsylvania with tenant-paid utilities and a varied apartment mix.
Property Size4,200 SF
Price / SF$297.62
Days on Market10
Property Features for 318 S 42ND ST
General Information
Standard status
Active
Size
4,200 SF
Class
B
Property subtype
Multifamily
Zoning
RM-1
Investment Type
Value Add
Units
Unit Mix
1 x 2BR/1BA, 3 x studio, 1 x 3BR/1BA
Multifamily Units
5
Additional Details
Public Transit
Yes
Building Details
Year Built
1920
Buildings
1
Stories
4
Units
5
Tenancy
Multi
Construction
masonry
Listing Agency:
SDG Real Estate
Listed By:
Shawn Witter · License #PA 326040
Source:
Crexi
Added: Aug 3
Changed: Aug 10
Last Checked: Aug 10 at 4:32AM
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 SDG Real Estate
Investment Insights
Based on property information with market context.
Built in 1920, this four-story masonry apartment building at 318 S 42nd Street contains 4,200 SF and five legal units. The layout includes one 2BR/1BA apartment, three studios, and one 3BR/1BA apartment. Tenants pay their own utilities, and the property is zoned RM-1.
The building is located in Philadelphia’s University City / Spruce Hill area near the University of Pennsylvania, Penn Medicine, CHOP, and Drexel. SEPTA trolley service and the Market-Frankford Line are within blocks. The property is situated in the Southeast Spruce Hill Historic District, where exterior alterations require Historical Commission approval.
The building is located in Philadelphia’s University City / Spruce Hill area near the University of Pennsylvania, Penn Medicine, CHOP, and Drexel. SEPTA trolley service and the Market-Frankford Line are within blocks. The property is situated in the Southeast Spruce Hill Historic District, where exterior alterations require Historical Commission approval.
Key Highlights
- Five legal apartment units: one 2BR/1BA, three studios, and one 3BR/1BA
- 4,200 SF, four‑story masonry apartment building
- Built in 1920 with 25' frontage
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
$66,064
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
5.29%
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%
$1,321,280
$1.3M
Cap Rate 7%
$943,771
$943.8K
Cap Rate 9%
$734,044
$734.0K
Market Conditions
NOI Build-Up for 4,200 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
$127.5K $30.36/SF
− Vacancy
−$7.4K −$1.76/SF
EGI
$120.1K $28.60/SF
− OpEx
−$54.1K −$12.87/SF
NOI
$66.1K $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%
$1,321,280
Cap Rate 7%
$943,771
Cap Rate 9%
$734,044
Alternative Uses
Best Use
Apartment 5plus
$943.8K
$825.8K – $1.10M
NOI $66,064 @ 7.0% cap · market cap 5.29%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$1.02M
$895.9K – $1.19M
NOI $71,673 @ 7.0% cap · market cap 5.73%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
Location Intelligence
Trade Area within ½ mile
4,124
Businesses Nearby
Explore this area
Business Placement
Demographics for 19104, PA
56,839
Population
23,888
Households
2.4
Avg Household Size
26
Median Age
47%
College-Educated
90%
High-School Grad
3.1 sq mi
ZIP Area
18,335
Density / Sq Mi
$39,526
Median Household Income
$18,420
Median Earnings
$1,329
Median Rent
$268,200
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 - Four-story masonry property near the University of Pennsylvania with tenant-paid utilities and a varied apartment mix.
Where is this apartment building located?
The property is located at 318 S 42ND ST Philadelphia, PA.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Five legal apartment units: one 2BR/1BA, three studios, and one 3BR/1BA; 4,200 SF, four‑story masonry apartment building; Built in 1920 with 25' frontage
