5-Unit Apartment
For Sale
$525,000
523 WALNUT STREET, Lebanon, PA 17042
Fully occupied residential income property with solid-surface flooring and landlord-provided coin laundry.
Property Size3,264 SF
Price / SF$160.85
Days on Market10
Property Features for 523 WALNUT STREET
General Information
Standard status
Active
Size
3,264 SF
Property subtype
Commercial
Occupancy
100%
Additional Details
Gross Income
$54,840
Multifamily Units
5
Amenities
coin laundry
Building Details
Year Built
1930
Buildings
1
Listing Agency:
Bering Real Estate Co.
(717) 224-9966
Listed By:
Ashlee N. Stutzman · License #RS332168
(717) 224-9966
Source:
Cummingsrealtors
Added: Aug 23
Changed: Aug 30
Last Checked: Aug 31 at 3:47PM
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 Bering Real Estate Co.
Investment Insights
Based on property information with market context.
This 5-unit apartment building contains 3,264 square feet and was built in 1930. All units are currently occupied, with several residents reported as long-term tenants. Solid-surface flooring runs throughout each apartment, providing a consistent finish across the property.
A landlord-provided coin laundry adds an on-site amenity and generates additional income. The property also offers convenient access to utilities for service, supporting ongoing apartment operations.
A landlord-provided coin laundry adds an on-site amenity and generates additional income. The property also offers convenient access to utilities for service, supporting ongoing apartment operations.
Key Highlights
- Five‑unit apartment building with 3,264 SF
- All units currently occupied
- Several units have long‑term tenants
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
$27,105
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
5.16%
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%
$542,100
$542.1K
Cap Rate 7%
$387,214
$387.2K
Cap Rate 9%
$301,167
$301.2K
Market Conditions
NOI Build-Up for 3,264 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
$52.9K $16.20/SF
− Vacancy
−$3.6K −$1.10/SF
EGI
$49.3K $15.10/SF
− OpEx
−$22.2K −$6.79/SF
NOI
$27.1K $8.30/SF
Area
Lebanon County, PA
Vacancy
6.80%
Lease Rate
$16.20 /SF/Yr
Expense Ratio
45.00%
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%
$542,100
Cap Rate 7%
$387,214
Cap Rate 9%
$301,167
Alternative Uses
Best Use
Apartment 5plus
$387.2K
$338.8K – $451.8K
NOI $27,105 @ 7.0% cap · market cap 5.16%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$766.1K
$670.4K – $893.8K
NOI $53,629 @ 7.0% cap · market cap 10.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
1,793
Businesses Nearby
Explore this area
Business Placement
Demographics for 17042, PA
40,618
Population
17,067
Households
2.4
Avg Household Size
43
Median Age
28%
College-Educated
88%
High-School Grad
67.7 sq mi
ZIP Area
600
Density / Sq Mi
$76,399
Median Household Income
$45,429
Median Earnings
$1,096
Median Rent
$222,200
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?
Apartment building - Fully occupied residential income property with solid-surface flooring and landlord-provided coin laundry.
Where is this apartment building located?
The property is located at 523 WALNUT STREET Lebanon, PA.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Five‑unit apartment building with 3,264 SF; All units currently occupied; Several units have long‑term tenants
