Drive-Through Restaurant or Office
For Sale
$1,000,000
502 Fairview St, Reading, PA 19605
Former restaurant building with drive-through window, extensively renovated systems, and updated ADA-compliant restrooms.
Property Size2,900 SF
Price / SF$344.83
Days on Market100
Property Features for 502 Fairview St
General Information
Standard status
Active
Size
2,900 SF
Building Details
Year Built
2003
Listing Agency:
Coldwell Banker Realty
Listed By:
Shon Elk
(484) 755-3947
Source:
Kandorre
Added: May 29
Changed: Aug 23
Last Checked: Sep 4 at 9:54AM
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 building was most recently used as a restaurant and has been updated with extensive recent renovations. The improvements include a new roof, new HVAC system, new plumbing, new water heater, and a heavy-duty 400-amp electric service. Interior finishes have been refreshed with new ceramic tile flooring, new drywall and paint, and new lighting throughout. Updated bathrooms include modern fixtures and ADA compliance, supporting a ready-to-occupy layout for a new operator.
The property is located directly on the 5th Street Highway corridor at 502 Fairview St. Parking is a key feature, with a newly sealed and striped main parking lot plus a second parking lot across the street included with the sale (the parcel at 438 Fairview St). The property is zoned for commercial use, and the versatile layout is described as suitable for a range of concepts subject to zoning approval.
The property is located directly on the 5th Street Highway corridor at 502 Fairview St. Parking is a key feature, with a newly sealed and striped main parking lot plus a second parking lot across the street included with the sale (the parcel at 438 Fairview St). The property is zoned for commercial use, and the versatile layout is described as suitable for a range of concepts subject to zoning approval.
Key Highlights
- Former restaurant on the 5th Street Highway corridor with a drive‑through window
- Extensive recent renovations include a complete infrastructure overhaul (2025), plus a brand‑new roof
- New HVAC, new plumbing, new water heater, and heavy‑duty 400‑amp electric service
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
$28,857
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
2.89%
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%
$577,140
$577.1K
Cap Rate 7%
$412,243
$412.2K
Cap Rate 9%
$320,633
$320.6K
Market Conditions
NOI Build-Up for 2,900 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
$40.7K $14.04/SF
− Vacancy
−$2.2K −$0.77/SF
EGI
$38.5K $13.27/SF
− OpEx
−$9.6K −$3.32/SF
NOI
$28.9K $9.95/SF
Area
Berks County, PA
Vacancy
5.50%
Lease Rate
$14.04 /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%
$577,140
Cap Rate 7%
$412,243
Cap Rate 9%
$320,633
Alternative Uses
Best Use
Specialty Retail
$412.2K
$360.7K – $481.0K
NOI $28,857 @ 7.0% cap · market cap 2.89%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$476.1K
$416.6K – $555.4K
NOI $33,324 @ 7.0% cap · market cap 3.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
653
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 Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - Former restaurant building with drive-through window, extensively renovated systems, and updated ADA-compliant restrooms.
Where is this drive through restaurant located?
The property is located at 502 Fairview St Reading, PA.
What is the asking price?
The asking price for this property is $1,000,000.
What are key features of this property?
This property features: Former restaurant on the 5th Street Highway corridor with a drive‑through window; Extensive recent renovations include a complete infrastructure overhaul (2025), plus a brand‑new roof; New HVAC, new plumbing, new water heater, and heavy‑duty 400‑amp electric service
