Mixed-Use Apartment
For Sale
Contact for pricing
5400 Walnut Street, Philadelphia, PA 19139
Mixed-use property with 14 residential units and fully leased ground-floor grocery space.
Property Size11,160 SF
Price / SF$134.41
Days on Market88
Property Features for 5400 Walnut Street
General Information
Standard status
Active
Size
11,160 SF
Class
C
Property subtype
Retail, Multifamily, Mixed Use
Zoning
CMX-2
Additional Details
Multifamily Units
14
Building Details
Year Built
1957
Year Renovated
2013
Buildings
1
Tenancy
Multi
Listed By:
Christopher Farmer · License #RS331174
Source:
Crexi
Added: Jun 10
Changed: Aug 16
Last Checked: Sep 1 at 4:19AM
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 Christopher Farmer
Investment Insights
Based on property information with market context.
The Penn Building is a mixed-use apartment community offering 14 residential units with an included unit mix of five studio apartments, eight one-bedroom apartments, and one two-bedroom apartment. The apartments feature open floor plans and modern kitchens with stainless steel appliances and functional layouts.
The property is positioned on a prominent southwest corner with frontage along 54th Street and Walnut Street. A fully leased ground-floor commercial space is occupied by a long-term grocery tenant, providing supplemental income alongside the residential component.
With 14 apartments and a commercial tenant already in place, the building offers current in-place rents that remain approximately $100 to $300 below market, creating an opportunity for new ownership to pursue continued unit upgrades and operational improvements.
The property is positioned on a prominent southwest corner with frontage along 54th Street and Walnut Street. A fully leased ground-floor commercial space is occupied by a long-term grocery tenant, providing supplemental income alongside the residential component.
With 14 apartments and a commercial tenant already in place, the building offers current in-place rents that remain approximately $100 to $300 below market, creating an opportunity for new ownership to pursue continued unit upgrades and operational improvements.
Key Highlights
- Mixed‑use property with 14 residential units plus fully leased ground‑floor commercial grocery space.
- 14‑unit unit mix: 5 studios, 8 one‑bedroom apartments, and 1 two‑bedroom apartment.
- Approx. 11,160 SF building on a prominent southwest corner with frontage along 54th St and Walnut St.
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
$126,133
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
8.41%
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%
$2,522,660
$2.5M
Cap Rate 7%
$1,801,900
$1.8M
Cap Rate 9%
$1,401,478
$1.4M
Market Conditions
NOI Build-Up for 11,160 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
$200.9K $18.00/SF
− Vacancy
−$20.7K −$1.85/SF
EGI
$180.2K $16.15/SF
− OpEx
−$54.1K −$4.84/SF
NOI
$126.1K $11.30/SF
Area
Philadelphia, PA
Vacancy
10.30%
Lease Rate
$18.00 /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%
$2,522,660
Cap Rate 7%
$1,801,900
Cap Rate 9%
$1,401,478
Alternative Uses
Best Use
Apartment 5plus
$2.51M
$2.19M – $2.93M
NOI $175,541 @ 7.0% cap · market cap 11.70%
Second Best
Specialty Retail
$2.31M
$2.02M – $2.70M
NOI $161,708 @ 7.0% cap · market cap 10.78%
Theoretical Best
Multifamily LT 5
$2.72M
$2.38M – $3.17M
NOI $190,444 @ 7.0% cap · market cap 12.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
14
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,381
Businesses Nearby
Explore this area
Business Placement
Demographics for 19139, PA
43,281
Population
23,896
Households
1.8
Avg Household Size
36
Median Age
22%
College-Educated
86%
High-School Grad
1.8 sq mi
ZIP Area
24,045
Density / Sq Mi
$38,701
Median Household Income
$34,796
Median Earnings
$1,110
Median Rent
$118,700
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?
Apartment building - Mixed-use property with 14 residential units and fully leased ground-floor grocery space.
Where is this apartment building located?
The property is located at 5400 Walnut Street Philadelphia, PA.
What is the asking price?
The asking price for this property is $1,500,000.
What are key features of this property?
This property features: Mixed‑use property with 14 residential units plus fully leased ground‑floor commercial grocery space.; 14‑unit unit mix: 5 studios, 8 one‑bedroom apartments, and 1 two‑bedroom apartment.; Approx. 11,160 SF building on a prominent southwest corner with frontage along 54th St and Walnut St.
