Corner Multi-Use Retail
For Sale
$1,250,000
402224 Lancaster Avenue, Philadelphia, PA 19104
Ground-floor commercial space with a full basement and second-floor office, positioned on a major transit corridor corner.
Property Size6,200 SF
Price / SF$201.61
Days on Market179
Property Features for 402224 Lancaster Avenue
General Information
Standard status
Active
Size
6,200 SF
Property subtype
Commercial
Zoning
CMX-2
Lease Term
[]
Building Details
Year Built
1915
Stories
2
Listing Agency:
Keller Williams Main Line
Listed By:
Jon M O'Shea · License #ab069634
(267) 780-3419
Source:
Deepcreeklake
Added: Mar 10
Changed: Sep 2
Last Checked: Sep 1 at 9:05PM
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 Keller Williams Main Line
Investment Insights
Based on property information with market context.
4022-24 Lancaster Avenue is a multi-use commercial building designed for active, high-volume operations, with approximately 6,200 square feet of ground-floor space plus a full basement. The property also includes about 1,000 square feet of second-floor office space, supporting a flexible operating model for retail and service uses. A history of diverse commercial activity includes a full-service grocery market, restaurant, and nightclub/lounge, aligning with the building’s purpose-built commercial character.
The building sits at the corner of Lancaster Avenue and 42nd Street and offers approximately 40 feet of frontage on Lancaster Avenue at 42nd Street. Zoning is CMX-2, which allows broad commercial uses. SEPTA Route 10 trolley service is available on-site, and the West Philadelphia submarket is described as walkable and transit-rich, with ongoing commercial activity along this corridor.
For tenants and operators, this layout supports combinations of retail, food service, and back-of-house needs through the full basement, while the second-floor office space can serve business administration or complementary functions. Buyers seeking a conventionally built, centrally located commercial asset with established multi-use flexibility and transit access may find the CMX-2 zoning and corner presence particularly relevant.
The building sits at the corner of Lancaster Avenue and 42nd Street and offers approximately 40 feet of frontage on Lancaster Avenue at 42nd Street. Zoning is CMX-2, which allows broad commercial uses. SEPTA Route 10 trolley service is available on-site, and the West Philadelphia submarket is described as walkable and transit-rich, with ongoing commercial activity along this corridor.
For tenants and operators, this layout supports combinations of retail, food service, and back-of-house needs through the full basement, while the second-floor office space can serve business administration or complementary functions. Buyers seeking a conventionally built, centrally located commercial asset with established multi-use flexibility and transit access may find the CMX-2 zoning and corner presence particularly relevant.
Key Highlights
- Corner commercial building at Lancaster Avenue and 42nd Street
- 6,200 SF ground‑floor commercial space plus a full basement
- 1,000 SF second‑floor office included
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
$89,838
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
7.19%
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%
$1,796,760
$1.8M
Cap Rate 7%
$1,283,400
$1.3M
Cap Rate 9%
$998,200
$998.2K
Market Conditions
NOI Build-Up for 6,200 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
$130.2K $21.00/SF
− Vacancy
−$10.4K −$1.68/SF
EGI
$119.8K $19.32/SF
− OpEx
−$29.9K −$4.83/SF
NOI
$89.8K $14.49/SF
Area
Philadelphia, PA
Vacancy
8.00%
Lease Rate
$21.00 /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%
$1,796,760
Cap Rate 7%
$1,283,400
Cap Rate 9%
$998,200
Alternative Uses
Best Use
Specialty Retail
$1.28M
$1.12M – $1.50M
NOI $89,838 @ 7.0% cap · market cap 7.19%
Second Best
Retail
$1.00M
$875.9K – $1.17M
NOI $70,074 @ 7.0% cap · market cap 5.61%
Theoretical Best
Multifamily LT 5
$1.51M
$1.32M – $1.76M
NOI $105,802 @ 7.0% cap · market cap 8.46%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,329
Businesses Nearby
Under-served
Demand for This Use
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 Retail in Philadelphia, PA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Ground-floor commercial space with a full basement and second-floor office, positioned on a major transit corridor corner.
Where is this grocery and convenience store located?
The property is located at 402224 Lancaster Avenue 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: Corner commercial building at Lancaster Avenue and 42nd Street; 6,200 SF ground‑floor commercial space plus a full basement; 1,000 SF second‑floor office included
