Building Details

Year Built 1925

Listing Agency: EXP Realty, LLC d***@brgpa.com Show Phone

Listed By: David Baez · License #RS291995 Show Phone

Source: Compass

Added: Apr 15 Changed: Aug 30 Last Checked: Aug 30 at 10:27PM

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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 EXP Realty, LLC

Investment Insights

Based on property information with market context.

This 3,160-square-foot quadplex, built in 1925, contains two three-bedroom residences and two two-bedroom residences. The units are described as being in good condition, with mostly long-term tenants in place. Each residence has its own high-efficiency combi system serving heat and on-demand hot water, while tenants pay their own heat and electric. The property also includes a rear parking lot, additional street parking, a side yard, and porch(es).

The property is located at 3527 Kutztown Road in Laureldale, Pennsylvania, within the Muhlenberg School District. Zoning is identified as 133 RES: 4 FAM. The stated cap rate is 9%, providing a supported financial metric for evaluating the asset alongside its four-unit configuration and operating features.

Key Highlights

• Four‑unit layout with two 3‑bedroom units and two 2‑bedroom units
• 3,160 SF property built in 1925
• 9% cap rate

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

$31,153

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

5.56%

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%

$623,060 $623.1K

Cap Rate 7%

$445,043 $445.0K

Cap Rate 9%

$346,144 $346.1K

Market Conditions

NOI Build-Up for 3,160 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

$46.3K $14.64/SF

− Vacancy

−$1.8K −$0.56/SF

EGI

$44.5K $14.08/SF

− OpEx

−$13.4K −$4.23/SF

NOI

$31.2K $9.86/SF

Area

Berks County, PA

Vacancy

3.80%

Lease Rate

$14.64 /SF/Yr

Expense Ratio

30.00%

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%

$623,060

Cap Rate 7%

$445,043

Cap Rate 9%

$346,144

Alternative Uses

Best Use

Multifamily LT 5

$445.0K

$389.4K – $519.2K (±1% cap)

NOI $31,153 @ 7.0% cap · market cap 5.56%

Second Best

Apartment 5plus

$389.0K

$340.4K – $453.8K (±1% cap)

NOI $27,230 @ 7.0% cap · market cap 4.86%

Theoretical Best

Office A

$518.7K

$453.9K – $605.2K (±1% cap)

NOI $36,312 @ 7.0% cap · market cap 6.49%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Quadplexes

Suggested Use

Top Pick Real Estate Agency Parking Lot & Garage Law Firm Grocery & Convenience Store Garden Center (Bike/Boat/Book/etc) Store

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

Lease Details

4

Residential units

Location Intelligence

Trade Area within ½ mile

469

Businesses Nearby

Explore this area Business Placement

Demographics for 19605, PA

21,356

Population

8,100

Households

2.6

Avg Household Size

43

Median Age

27%

College-Educated

90%

High-School Grad

17.6 sq mi

ZIP Area

1,213

Density / Sq Mi

$85,775

Median Household Income

$45,578

Median Earnings

$1,310

Median Rent

$218,500

Median Home Value

Market

Vacancy Rate% for Multifamily in Northeast region

4% 2022

4.6% 2023

5.3% 2024

5.6% 2025

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Frequently Asked Questions

What type of property is this?

Quadplex - Two three-bedroom and two two-bedroom units offer a defined mix with tenant-paid heat and electric.

Where is this quadplex located?

The property is located at 3527 Kutztown Road Laureldale, PA.

What is the asking price?

The asking price for this property is $559,900.

What are key features of this property?

This property features: Four‑unit layout with two 3‑bedroom units and two 2‑bedroom units; 3,160 SF property built in 1925; 9% cap rate