Three-Unit Residential Income
For Sale
Contact for pricing
322 RIDGE AVE, Allentown, PA 18102
Triplex with two long-term tenants and approved plans to expand residential units within existing retail space.
Property Size3,978 SF
Price / SF$104.07
Days on Market51
Property Features for 322 RIDGE AVE
General Information
Standard status
Active
Size
3,978 SF
Class
A
Property subtype
Multifamily
Zoning
R-MH
Investment Type
Owner/User
Additional Details
Multifamily Units
3
Building Details
Year Built
1863
Stories
3
Units
3
Tenancy
Multi
Listing Agency:
KW Keller Williams Real Estate
(610) 435-1800
Listed By:
Ayon A Codner · License #RS324477
Source:
Crexi
Added: Jul 2
Changed: Aug 8
Last Checked: Aug 21 at 6:21PM
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 KW Keller Williams Real Estate
Investment Insights
Based on property information with market context.
This three-unit residential income property includes a retail space plus residential units on the second and third floors. The second and third floors are currently occupied by long-term tenants. The seller also has approved plans to create an additional three-bedroom apartment within the retail space, expanding the property’s residential configuration.
The property is located on Ridge Avenue in Allentown, positioned in a residential area approximately three blocks from the newly constructed Jaindl Enterprise Waterfront mixed-use Class A building. The nearby redevelopment efforts align with the area’s Vision 2030 Initiative focused on neighborhood revitalization.
For buyers and investors seeking a small multifamily asset with existing in-place occupancy, the current two occupied residential floors provide immediate rental use. The approved plan to add a third three-bedroom apartment also offers a clear path to increasing residential capacity from the existing retail footprint. The combination of retail and residential zoning of spaces within the same building can support tenants who want a compact, income-oriented property with straightforward unit planning based on the approved concept.
The property is located on Ridge Avenue in Allentown, positioned in a residential area approximately three blocks from the newly constructed Jaindl Enterprise Waterfront mixed-use Class A building. The nearby redevelopment efforts align with the area’s Vision 2030 Initiative focused on neighborhood revitalization.
For buyers and investors seeking a small multifamily asset with existing in-place occupancy, the current two occupied residential floors provide immediate rental use. The approved plan to add a third three-bedroom apartment also offers a clear path to increasing residential capacity from the existing retail footprint. The combination of retail and residential zoning of spaces within the same building can support tenants who want a compact, income-oriented property with straightforward unit planning based on the approved concept.
Key Highlights
- Three‑unit investment property in Allentown, PA, built in 1863
- Second and third floors are currently occupied by long‑term tenants
- Approved plans to create an additional three‑bedroom apartment within the existing retail space
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
$36,704
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
8.87%
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%
$734,080
$734.1K
Cap Rate 7%
$524,343
$524.3K
Cap Rate 9%
$407,822
$407.8K
Market Conditions
NOI Build-Up for 3,978 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
$71.6K $18.00/SF
− Vacancy
−$4.9K −$1.22/SF
EGI
$66.7K $16.78/SF
− OpEx
−$30.0K −$7.55/SF
NOI
$36.7K $9.23/SF
Area
Allentown, PA
Vacancy
6.80%
Lease Rate
$18.00 /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%
$734,080
Cap Rate 7%
$524,343
Cap Rate 9%
$407,822
Alternative Uses
Best Use
Multifamily LT 5
$596.1K
$521.6K – $695.5K
NOI $41,727 @ 7.0% cap · market cap 10.08%
Second Best
Apartment 5plus
$524.3K
$458.8K – $611.7K
NOI $36,704 @ 7.0% cap · market cap 8.87%
Theoretical Best
Specialty Retail
$781.5K
$683.8K – $911.8K
NOI $54,705 @ 7.0% cap · market cap 13.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,978
Businesses Nearby
Explore this area
Business Placement
Demographics for 18102, PA
51,567
Population
18,788
Households
2.7
Avg Household Size
32
Median Age
11%
College-Educated
76%
High-School Grad
3.0 sq mi
ZIP Area
17,189
Density / Sq Mi
$40,681
Median Household Income
$29,501
Median Earnings
$1,224
Median Rent
$146,600
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?
Triplex - Triplex with two long-term tenants and approved plans to expand residential units within existing retail space.
Where is this triplex located?
The property is located at 322 RIDGE AVE Allentown, PA.
What is the asking price?
The asking price for this property is $414,000.
What are key features of this property?
This property features: Three‑unit investment property in Allentown, PA, built in 1863; Second and third floors are currently occupied by long‑term tenants; Approved plans to create an additional three‑bedroom apartment within the existing retail space
