Restaurant Property with
For Sale
$850,000
424 N Main St, Souderton, PA 18964
Existing restaurant improvements sit beside a newly renovated park, with off-street and public parking available.
Property Size3,600 SF
Price / SF$236.11
Days on Market29
Property Features for 424 N Main St
General Information
Standard status
Active
Size
3,600 SF
Additional Details
Equipment Included
No
Building Details
Year Built
1984
Listing Agency:
RE/MAX Reliance
Listed By:
Kathy Cassel
Source:
Kathywolfgang
Added: Aug 2
Changed: Aug 29
Last Checked: Aug 26 at 5:46AM
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 RE/MAX Reliance
Investment Insights
Based on property information with market context.
This 3,600-square-foot restaurant property was built in 1984 and is currently configured for restaurant use. The improvements have also accommodated deli and hair salon operations in the past, providing a documented history of varied commercial uses. Fixtures and equipment can be removed from the premises or handled separately from the real estate.
The property is located at 424 N Main Street in Souderton, Pennsylvania. On-site off-street parking is supplemented by access to an additional public parking lot, while a newly renovated park is situated next to the property.
The property is located at 424 N Main Street in Souderton, Pennsylvania. On-site off-street parking is supplemented by access to an additional public parking lot, while a newly renovated park is situated next to the property.
Key Highlights
- 3,600‑square‑foot restaurant property
- Built in 1984
- Currently used as a restaurant
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
$43,455
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
5.11%
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%
$869,100
$869.1K
Cap Rate 7%
$620,786
$620.8K
Cap Rate 9%
$482,833
$482.8K
Market Conditions
NOI Build-Up for 3,600 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
$64.8K $18.00/SF
− Vacancy
−$2.7K −$0.76/SF
EGI
$62.1K $17.24/SF
− OpEx
−$18.6K −$5.17/SF
NOI
$43.5K $12.07/SF
Area
Montgomery County, PA
Vacancy
4.20%
Lease Rate
$18.00 /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%
$869,100
Cap Rate 7%
$620,786
Cap Rate 9%
$482,833
Alternative Uses
Best Use
Specialty Retail
$2.07M
$1.81M – $2.42M
NOI $144,953 @ 7.0% cap · market cap 17.05%
Second Best
Retail
$620.8K
$543.2K – $724.3K
NOI $43,455 @ 7.0% cap · market cap 5.11%
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
553
Businesses Nearby
18k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Wawa
Shops & Services
17,039 visits/mo
0.1 miles
Napa Auto Parts
Shops & Services
657 visits/mo
0.3 miles
Demographics for 18964, PA
14,366
Population
5,686
Households
2.5
Avg Household Size
43
Median Age
40%
College-Educated
91%
High-School Grad
9.5 sq mi
ZIP Area
1,512
Density / Sq Mi
$94,291
Median Household Income
$53,660
Median Earnings
$1,358
Median Rent
$339,700
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.
Frequently Asked Questions
What type of property is this?
Conventional restaurant - Existing restaurant improvements sit beside a newly renovated park, with off-street and public parking available.
Where is this conventional restaurant located?
The property is located at 424 N Main St Souderton, PA.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 3,600‑square‑foot restaurant property; Built in 1984; Currently used as a restaurant
