Occupied 2-Unit
For Sale
$475,000
508-510 ROYAL ROAD, State College, PA 16801
Two leased residences offer established occupancy and off-street parking.
Property Size2,091 SF
Price / SF$227.16
Days on Market8
Property Features for 508-510 ROYAL ROAD
General Information
Standard status
Active
Size
2,091 SF
Property subtype
Duplex
Occupancy
100%
Site & Location
Road Access
Yes
Utilities to Site
Yes
Additional Details
Multifamily Units
2
Amenities
off-street parking
Building Details
Year Built
1973
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
RE/MAX Centre Realty
(814) 280-2424
Listed By:
Ryan S Lowe · License #AB066402
(814) 280-2424
Source:
Cummingsrealtors
Added: Aug 10
Changed: Aug 16
Last Checked: Aug 17 at 6:38AM
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 Centre Realty
Investment Insights
Based on property information with market context.
This two-story duplex contains 2,091 square feet and was built in 1973. Both units are currently leased, with separate active rental permits and student home licenses. The property also includes off-street parking and a roof installed in 2019. Tenants handle electric heat and hot water, water and sewer, trash service, lawn care, and snow removal.
Located at 508-510 Royal Road in State College Borough, the property sits just off University Drive with access to Penn State University, downtown State College, shopping, dining, and everyday amenities. The leases extend through July 29, 2027, for one unit and December 29, 2026, for the other, supporting continued occupancy under the current arrangements.
Located at 508-510 Royal Road in State College Borough, the property sits just off University Drive with access to Penn State University, downtown State College, shopping, dining, and everyday amenities. The leases extend through July 29, 2027, for one unit and December 29, 2026, for the other, supporting continued occupancy under the current arrangements.
Key Highlights
- 2,091‑square‑foot two‑story duplex built in 1973
- Both units are currently leased with terms extending through July 29, 2027, and December 29, 2026
- Active rental permits and student home licenses for both units
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
$18,558
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
3.91%
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%
$371,160
$371.2K
Cap Rate 7%
$265,114
$265.1K
Cap Rate 9%
$206,200
$206.2K
Market Conditions
NOI Build-Up for 2,091 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
$28.4K $13.56/SF
− Vacancy
−$1.8K −$0.88/SF
EGI
$26.5K $12.68/SF
− OpEx
−$8.0K −$3.80/SF
NOI
$18.6K $8.88/SF
Area
Centre County, PA
Vacancy
6.50%
Lease Rate
$13.56 /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%
$371,160
Cap Rate 7%
$265,114
Cap Rate 9%
$206,200
Alternative Uses
Best Use
Multifamily LT 5
$265.1K
$232.0K – $309.3K
NOI $18,558 @ 7.0% cap · market cap 3.91%
Second Best
Apartment 5plus
$237.7K
$208.0K – $277.3K
NOI $16,640 @ 7.0% cap · market cap 3.50%
Theoretical Best
Office A
$461.8K
$404.1K – $538.8K
NOI $32,327 @ 7.0% cap · market cap 6.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
579
Businesses Nearby
Explore this area
Business Placement
Demographics for 16801, PA
42,446
Population
19,242
Households
2.2
Avg Household Size
28
Median Age
67%
College-Educated
98%
High-School Grad
31.1 sq mi
ZIP Area
1,365
Density / Sq Mi
$62,821
Median Household Income
$27,598
Median Earnings
$1,221
Median Rent
$400,400
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?
Duplex - Two leased residences offer established occupancy and off-street parking.
Where is this duplex located?
The property is located at 508-510 ROYAL ROAD State College, PA.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 2,091‑square‑foot two‑story duplex built in 1973; Both units are currently leased with terms extending through July 29, 2027, and December 29, 2026; Active rental permits and student home licenses for both units
