Mixed-Use Building With 5
For Sale
$550,000
507 Delaware Avenue, Portland, PA 18351
Residential apartments and a commercial storefront share this well-maintained property in Portland.
Property Size5,500 SF
Days on Market101
Property Features for 507 Delaware Avenue
General Information
Standard status
Active
Size
5,500 SF
Property subtype
Residential Income
Zoning
Commercial
Occupancy
100%
Units
Unit Mix
3 x 1BR, 1 x 2BR
Multifamily Units
4
Taxes and HOA fees
Annual Taxes
$4,003
Building Details
Building Size
5,500 SF
Year Built
1900
Buildings
1
Stories
3
Units
5
Tenancy
Multi
Listing Agency:
Realty Solutions of PA
(610) 349-5059
Listed By:
Faith M Sarisky
(610) 349-5059
Source:
Sercommercial
Added: Apr 30
Changed: Aug 7
Last Checked: Aug 7 at 3:47AM
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 Realty Solutions of PA
Investment Insights
Based on property information with market context.
Located at 507 Delaware Avenue in Portland, PA, this mixed-use property was built in 1900 and contains five total units. The layout includes three one-bedroom apartments on the second floor, a two-bedroom apartment on the first floor, and a commercial storefront occupied by a chocolate shop. All units are currently rented, with long-term tenants in place.
Recent improvements include new electrical panel boxes in the three second-floor apartments, replacement sewer piping in the basement, new flooring in the hallway, upgraded second-floor lighting, emergency lighting, illuminated exit signs, GFCI outlets, and added handrails and guard rails. Unit 2A was fully remodeled in 2022, and Unit 2C was also remodeled. The second floor offers views of the Delaware River and walking bridge. The property is zoned Commercial, and an approved facade improvement grant may be transferred to the new owner.
Recent improvements include new electrical panel boxes in the three second-floor apartments, replacement sewer piping in the basement, new flooring in the hallway, upgraded second-floor lighting, emergency lighting, illuminated exit signs, GFCI outlets, and added handrails and guard rails. Unit 2A was fully remodeled in 2022, and Unit 2C was also remodeled. The second floor offers views of the Delaware River and walking bridge. The property is zoned Commercial, and an approved facade improvement grant may be transferred to the new owner.
Key Highlights
- Five total units: three one‑bedroom apartments, one two‑bedroom apartment, and a commercial storefront
- All units are currently rented, with long‑term tenants in place
- Unit 2A was fully remodeled in 2022; Unit 2C was also remodeled
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
$42,596
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
7.74%
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%
$851,920
$851.9K
Cap Rate 7%
$608,514
$608.5K
Cap Rate 9%
$473,289
$473.3K
Market Conditions
NOI Build-Up for 5,500 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
$66.0K $12.00/SF
− Vacancy
−$5.1K −$0.94/SF
EGI
$60.9K $11.06/SF
− OpEx
−$18.3K −$3.32/SF
NOI
$42.6K $7.74/SF
Area
Northampton County, PA
Vacancy
7.80%
Lease Rate
$12.00 /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%
$851,920
Cap Rate 7%
$608,514
Cap Rate 9%
$473,289
Alternative Uses
Best Use
Mixed Use
$795.5K
$696.1K – $928.1K
NOI $55,688 @ 7.0% cap · market cap 10.13%
Second Best
Retail
$608.5K
$532.5K – $709.9K
NOI $42,596 @ 7.0% cap · market cap 7.74%
Theoretical Best
Office A
$1.04M
$912.8K – $1.22M
NOI $73,022 @ 7.0% cap · market cap 13.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
4
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
153
Businesses Nearby
Explore this area
Business Placement
Demographics for 18351, PA
494
Population
295
Households
1.7
Avg Household Size
45
Median Age
12%
College-Educated
96%
High-School Grad
0.3 sq mi
ZIP Area
1,647
Density / Sq Mi
$71,667
Median Household Income
$41,705
Median Earnings
$1,354
Median Rent
$258,600
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Residential apartments and a commercial storefront share this well-maintained property in Portland.
Where is this mixed-use property located?
The property is located at 507 Delaware Avenue Portland, 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: Five total units: three one‑bedroom apartments, one two‑bedroom apartment, and a commercial storefront; All units are currently rented, with long‑term tenants in place; Unit 2A was fully remodeled in 2022; Unit 2C was also remodeled
