Restaurant Building with MU-2
For Sale
$699,900
Pending
3505 W 26TH Street, Erie, PA 16506
COMMERCIAL - Erie, PA
Property Size3,471 SF
Lot Size0.77 Acres
Days on Market123
Property Features for 3505 W 26TH Street
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
MU
Bathrooms
2
Full bathrooms
2
Rooms
Bathroom 2, Bathroom 1
Parking
42
Lot features
Mineral Rights
Elementary school district
Millcreek
Middle school district
Millcreek
High school district
Millcreek
Directions
West 26th St to the corner of Loveland Avenue.
Subdivision
6 - Millcreek S of W26
Standard status
Pending
APN
33-069-256.0-027.00
Size
3,471 SF
Lot size
0.77 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
11143
Expense value
25000
Expense
SecurityDeposit
Expense freq.
One Time
Utilities
Sewer type
Public Sewer
Heating system
Forced Air, Natural Gas
Cooling system
Central Air
Water source
Public
Building Details
Year built
1970
Building materials
Brick
Listing Agency:
Coldwell Banker Select - Airport · Coldwell Banker Real Estate
(814) 838-2299
Listed By:
Jenn Hills · License #RS288606
(814) 572-0705
Added: Apr 17
Changed: Aug 15
Last Checked: Aug 17 at 12:06PM
MLS# 190440
Copyright © 2026 Greater Erie Board of Realtors MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This brick restaurant building is currently set up as a Mexican bakery. The sale does not include the business. Some equipment is included, and the flexible interior layout includes an office component totaling 150 SF.
The property sits on a 0.77-acre lot and is positioned in a high-visibility area with approximately 20K/24Hr traffic. It is zoned Mixed-Use (MU-2), which may support a range of future concepts. The building is 3,471 SF and was built in 1970, with natural gas forced-air heating and central air.
Utilities include public water and public sewer. The property also includes two bathrooms.
The property sits on a 0.77-acre lot and is positioned in a high-visibility area with approximately 20K/24Hr traffic. It is zoned Mixed-Use (MU-2), which may support a range of future concepts. The building is 3,471 SF and was built in 1970, with natural gas forced-air heating and central air.
Utilities include public water and public sewer. The property also includes two bathrooms.
Key Highlights
- 0.77‑acre lot with 3,471 SF restaurant building
- Mixed‑Use (MU‑2) zoning
- High‑visibility location with approximately 20K/24Hr traffic
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
$48,781
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
6.97%
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%
$975,620
$975.6K
Cap Rate 7%
$696,871
$696.9K
Cap Rate 9%
$542,011
$542.0K
Market Conditions
NOI Build-Up for 3,471 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
$67.9K $19.56/SF
− Vacancy
−$2.9K −$0.82/SF
EGI
$65.0K $18.74/SF
− OpEx
−$16.3K −$4.68/SF
NOI
$48.8K $14.05/SF
Area
Erie County, PA
Vacancy
4.20%
Lease Rate
$19.56 /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%
$975,620
Cap Rate 7%
$696,871
Cap Rate 9%
$542,011
Alternative Uses
Best Use
Specialty Retail
$696.9K
$609.8K – $813.0K
NOI $48,781 @ 7.0% cap · market cap 6.97%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$861.1K
$753.5K – $1.00M
NOI $60,279 @ 7.0% cap · market cap 8.61%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
20,000 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
564
Businesses Nearby
10k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 64%
Shops & Services 22%
Apparel 15%
Dunkin' Donuts
Dining
6,121 visits/mo
0.3 miles
Talbots
Apparel
1,418 visits/mo
0.3 miles
Monro Auto Service and Tire Centers
Shops & Services
1,133 visits/mo
0.5 miles
PostNet
Shops & Services
967 visits/mo
0.3 miles
Demographics for 16506, PA
23,918
Population
10,309
Households
2.3
Avg Household Size
44
Median Age
39%
College-Educated
96%
High-School Grad
13.6 sq mi
ZIP Area
1,759
Density / Sq Mi
$84,021
Median Household Income
$47,823
Median Earnings
$1,176
Median Rent
$224,200
Median Home Value
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Butch's Place Family Restaurant — 3330 W 26th St, Erie, PA 16506
Frequently Asked Questions
What type of property is this?
Breakfast & diner - Brick restaurant building in mixed-use MU-2 zoning with central air, natural gas forced-air heat, and public utilities.
Where is this breakfast & diner located?
The property is located at 3505 W 26TH Street Erie, PA.
What is the asking price?
The asking price for this property is $699,900.
What are key features of this property?
This property features: 0.77‑acre lot with 3,471 SF restaurant building; Mixed‑Use (MU‑2) zoning; High‑visibility location with approximately 20K/24Hr traffic
