Building Details

Year Built 1986

Listing Agency: Coldwell Banker Realty

Listed By: Jerry G Buffa Show Phone

Source: Cummingsrealtors

Added: Sep 7 Changed: Sep 13 Last Checked: Sep 13 at 4:36AM

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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 Coldwell Banker Realty

Investment Insights

Based on property information with market context.

This conventional restaurant property includes the real estate and operating business in a combined offering. The site provides off-street parking and outdoor seating for customers, with the building dating to 1986.

Located at 4204 Division Highway in East Earl, Pennsylvania, the property is being offered only as a combined business and real estate purchase.

Key Highlights

• Operating restaurant business and real estate offered together
• Outdoor seating included
• Off‑street parking available

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

$45,967

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

8.36%

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%

$919,340 $919.3K

Cap Rate 7%

$656,671 $656.7K

Cap Rate 9%

$510,744 $510.7K

Market Conditions

NOI Build-Up for 2,520 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

$65.6K $26.04/SF

− Vacancy

−$4.3K −$1.72/SF

EGI

$61.3K $24.32/SF

− OpEx

−$15.3K −$6.08/SF

NOI

$46.0K $18.24/SF

Area

Lancaster County, PA

Vacancy

6.60%

Lease Rate

$26.04 /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%

$919,340

Cap Rate 7%

$656,671

Cap Rate 9%

$510,744

Alternative Uses

Best Use

Specialty Retail

$656.7K

$574.6K – $766.1K (±1% cap)

NOI $45,967 @ 7.0% cap · market cap 8.36%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$844.5K

$738.9K – $985.2K (±1% cap)

NOI $59,113 @ 7.0% cap · market cap 10.75%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

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Current Use

Conventional restaurants

Suggested Use

Top Pick Dental Office Pharmacy Grocery & Convenience Store (Bike/Boat/Book/etc) Store Nail Salon HVAC Service

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

Turnkey business

Opportunity

Location Intelligence

Trade Area within ½ mile

120

Businesses Nearby

20k

Monthly Visits Nearby

Balanced

Demand for This Use

Explore this area Business Placement

Foot Traffic Nearby

Shops & Services 100%

Dollar General Shops & Services

9,498 visits/mo 0.1 miles

Truist Shops & Services

5,261 visits/mo 0.3 miles

Ephrata National Bank Shops & Services

5,227 visits/mo 0.2 miles

Demographics for 17519, PA

7,134

Population

2,672

Households

2.7

Avg Household Size

36

Median Age

13%

College-Educated

66%

High-School Grad

21.6 sq mi

ZIP Area

330

Density / Sq Mi

$95,205

Median Household Income

$41,504

Median Earnings

$1,494

Median Rent

$321,000

Median Home Value

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

Questions? Ask Rey

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What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

Similar Off Market Nearby

• Shady Maple Smorgasboard — East Earl, PA 17519

Frequently Asked Questions

What type of property is this?

Conventional restaurant - Restaurant property offered with off-street parking and the operating business as part of the sale.

Where is this conventional restaurant located?

The property is located at 4204 DIVISION HIGHWAY East Earl, PA.

What is the asking price?

The asking price for this property is $550,000.

What are key features of this property?

This property features: Operating restaurant business and real estate offered together; Outdoor seating included; Off‑street parking available