Freestanding Commercial Condo For
For Sale
Contact for pricing
327 Star Rd, Allentown, PA 18106
Freestanding 6,227 SF commercial condo in Upper Macungie Township.
Property Size6,227 SF
Lot Size5.10 Acres
Price / SF$272.20
Days on Market856
Property Features for 327 Star Rd
General Information
Standard status
Active
Size
6,227 SF
Lot size
5.10 Acres
Property subtype
Retail
Zoning
HC
Building Details
Year Built
2005
Year Renovated
2018
Stories
1
Units
1
Listing Agency:
The James Balliet Property Group
(610) 435-1800
Listed By:
James Balliet · License #PA RS227612L
Source:
Crexi
Added: Apr 18, 2024
Changed: Aug 12
Last Checked: Aug 20 at 8:38PM
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 The James Balliet Property Group
Investment Insights
Based on property information with market context.
Available for immediate sale or lease is a 6,227 square foot freestanding commercial condominium, identified as Unit-1, situated on a 5.1-acre lot shared with two national hotel chains. Located in Upper Macungie Township, PA, the property is zoned HC- Highway commercial, offering a by-right opportunity for various business ventures, including restaurant concepts, brew pubs, medical offices, and retail establishments. The property is currently configured as a chain family sports bar/restaurant, complete with an outdoor patio. The exact details of the condominium plan are currently being engineered. The surrounding area is experiencing significant residential growth and is near numerous hotels, business parks, and warehouse facilities, including Uline and Amazon.
Key Highlights
- Prime restaurant/office condominium opportunity in a high‑traffic location.
- Zoned HC‑Highway Commercial, allowing for a wide range of uses.
- Freestanding 6,227 SF structure with existing restaurant build‑out and outdoor patio.
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
$85,634
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
5.05%
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%
$1,712,680
$1.7M
Cap Rate 7%
$1,223,343
$1.2M
Cap Rate 9%
$951,489
$951.5K
Market Conditions
NOI Build-Up for 6,227 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
$119.6K $19.20/SF
− Vacancy
−$5.4K −$0.86/SF
EGI
$114.2K $18.34/SF
− OpEx
−$28.5K −$4.58/SF
NOI
$85.6K $13.75/SF
Area
Allentown, PA
Vacancy
4.50%
Lease Rate
$19.20 /SF/Yr
Expense Ratio
25.00%
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%
$1,712,680
Cap Rate 7%
$1,223,343
Cap Rate 9%
$951,489
Alternative Uses
Best Use
Specialty Retail
$1.22M
$1.07M – $1.43M
NOI $85,634 @ 7.0% cap · market cap 5.05%
Second Best
Retail
$1.10M
$958.7K – $1.28M
NOI $76,697 @ 7.0% cap · market cap 4.52%
Theoretical Best
—
—
same as Best Use
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
463
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 18106, PA
7,477
Population
2,737
Households
2.7
Avg Household Size
45
Median Age
45%
College-Educated
94%
High-School Grad
8.0 sq mi
ZIP Area
935
Density / Sq Mi
$86,361
Median Household Income
$47,466
Median Earnings
$1,554
Median Rent
$361,200
Median Home Value
Market
Vacancy Rate% for Office in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- Absolute Entertainment — Allentown, PA 18106
- Iron Run Beverage — 7525 Tilghman St, Allentown, PA 18106
Frequently Asked Questions
What type of property is this?
Bar & Pub - Freestanding 6,227 SF commercial condo in Upper Macungie Township.
Where is this bar & pub located?
The property is located at 327 Star Rd Allentown, PA.
What is the asking price?
The asking price for this property is $1,695,000.
What are key features of this property?
This property features: Prime restaurant/office condominium opportunity in a high‑traffic location.; Zoned HC‑Highway Commercial, allowing for a wide range of uses.; Freestanding 6,227 SF structure with **existing restaurant build‑out and outdoor patio**.
