Vacant Three-Unit
For Sale
$399,900
516 W WALNUT STREET, Lancaster, PA 17603
Three residential units feature separately metered electric and water service.
Property Size1,904 SF
Price / SF$210.03
Days on Market10
Property Features for 516 W WALNUT STREET
General Information
Standard status
Active
Size
1,904 SF
Property subtype
Triplex
Site & Location
Public Transit
Yes
Utilities to Site
Yes
Additional Details
Multifamily Units
3
Building Details
Year Built
1900
Listing Agency:
Berkshire Hathaway HomeServices Homesale Realty
(717) 560-8496
Listed By:
Timothy K Shreiner · License #RS187003L
(717) 560-8496
Source:
Cummingsrealtors
Added: Aug 2
Changed: Aug 11
Last Checked: Aug 11 at 6:04AM
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 Berkshire Hathaway HomeServices Homesale Realty
Investment Insights
Based on property information with market context.
Located at 516 W Walnut Street in Lancaster, Pennsylvania, this triplex contains three residential units totaling 1,904 square feet. Built in 1900, the property is currently vacant, giving a new owner control over leasing and any desired renovation work before occupancy. Separate electric meters and separate water meters support distinct utility management for each residence.
The property is situated in Lancaster City's Chestnut Hill neighborhood, minutes from Downtown Lancaster and Penn Square. Franklin & Marshall College, restaurants, shopping, public transportation, and major commuter routes are also nearby, providing access to established civic, educational, retail, and transportation destinations.
The three-unit configuration offers flexibility for a multifamily operator or an owner-occupant seeking to reside in one residence while leasing the other two, as explicitly supported by the property layout and vacant status.
The property is situated in Lancaster City's Chestnut Hill neighborhood, minutes from Downtown Lancaster and Penn Square. Franklin & Marshall College, restaurants, shopping, public transportation, and major commuter routes are also nearby, providing access to established civic, educational, retail, and transportation destinations.
The three-unit configuration offers flexibility for a multifamily operator or an owner-occupant seeking to reside in one residence while leasing the other two, as explicitly supported by the property layout and vacant status.
Key Highlights
- Three residential units within a 1,904‑square‑foot triplex
- All units currently vacant
- Separate electric meters for the residential 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
$21,267
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
5.32%
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%
$425,340
$425.3K
Cap Rate 7%
$303,814
$303.8K
Cap Rate 9%
$236,300
$236.3K
Market Conditions
NOI Build-Up for 1,904 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
$30.8K $16.20/SF
− Vacancy
−$463 −$0.24/SF
EGI
$30.4K $15.96/SF
− OpEx
−$9.1K −$4.79/SF
NOI
$21.3K $11.17/SF
Area
Lancaster County, PA
Vacancy
1.50%
Lease Rate
$16.20 /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%
$425,340
Cap Rate 7%
$303,814
Cap Rate 9%
$236,300
Alternative Uses
Best Use
Multifamily LT 5
$303.8K
$265.8K – $354.5K
NOI $21,267 @ 7.0% cap · market cap 5.32%
Second Best
Apartment 5plus
$267.9K
$234.4K – $312.6K
NOI $18,755 @ 7.0% cap · market cap 4.69%
Theoretical Best
Office A
$638.0K
$558.3K – $744.4K
NOI $44,663 @ 7.0% cap · market cap 11.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Yes
Utilities to site
Location Intelligence
Trade Area within ½ mile
1,120
Businesses Nearby
Explore this area
Business Placement
Demographics for 17603, PA
66,739
Population
28,142
Households
2.4
Avg Household Size
37
Median Age
37%
College-Educated
90%
High-School Grad
30.0 sq mi
ZIP Area
2,225
Density / Sq Mi
$77,156
Median Household Income
$40,043
Median Earnings
$1,265
Median Rent
$244,500
Median Home Value
Market
Vacancy Rate% for Multifamily 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?
Triplex - Three residential units feature separately metered electric and water service.
Where is this triplex located?
The property is located at 516 W WALNUT STREET Lancaster, PA.
What is the asking price?
The asking price for this property is $399,900.
What are key features of this property?
This property features: Three residential units within a 1,904‑square‑foot triplex; All units currently vacant; Separate electric meters for the residential units
