Historic Stone Mixed-Use
For Sale
$1,200,000
605 Main Street, Hellertown, PA 18055
Renovated restaurant space and occupied apartments provide distinct income components.
Property Size9,533 SF
Days on Market10
Property Features for 605 Main Street
General Information
Standard status
Active
Size
9,533 SF
Property subtype
Retail
Occupancy
100%
Restaurant
Patio
Yes
Equipment Included
No
Liquor License
No
Additional Details
Furnished
No
Cap Rate
7%
Highway Access
Yes
Multifamily Units
5
Taxes and HOA fees
Annual Taxes
$12,273
Amenities
outdoor patio
on-site parking lot
Building Details
Building Size
9,533 SF
Year Built
1889
Construction
stone
Tenancy
Multi
Listing Agency:
Howard Hanna TheFrederickGroup
(610) 398-0411
Listed By:
Marina Gabunia · License #PA347078
Source:
Bhhspaulfordrealtors
Added: Aug 13
Changed: Aug 21
Last Checked: Aug 21 at 4:57AM
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 Howard Hanna TheFrederickGroup
Investment Insights
Based on property information with market context.
Built in 1889, this historic stone mixed-use property combines a renovated first-floor restaurant with five residential apartments above. The restaurant includes a separate dining area, pool table, game space, and an outdoor patio suited to dining and entertainment. An on-site parking lot serves the property, and the restaurant is operating under a 5-year lease.
All five apartments are renovated and occupied, while the property is 100% rented overall. The asset reports a 7% cap rate and offers multiple income streams across its commercial and residential components. The property is located in Northampton County with access to Route 78, Bethlehem, and surrounding Lehigh Valley markets.
All five apartments are renovated and occupied, while the property is 100% rented overall. The asset reports a 7% cap rate and offers multiple income streams across its commercial and residential components. The property is located in Northampton County with access to Route 78, Bethlehem, and surrounding Lehigh Valley markets.
Key Highlights
- Historic stone mixed‑use property built in 1889
- Renovated restaurant with separate dining area, pool table, and game space
- Five renovated residential apartments, all fully occupied
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
$98,881
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
8.24%
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%
$1,977,620
$2.0M
Cap Rate 7%
$1,412,586
$1.4M
Cap Rate 9%
$1,098,678
$1.1M
Market Conditions
NOI Build-Up for 9,533 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
$143.0K $15.00/SF
− Vacancy
−$11.2K −$1.17/SF
EGI
$131.8K $13.83/SF
− OpEx
−$33.0K −$3.46/SF
NOI
$98.9K $10.37/SF
Area
Northampton County, PA
Vacancy
7.80%
Lease Rate
$15.00 /SF/Yr
Expense Ratio
25.00%
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%
$1,977,620
Cap Rate 7%
$1,412,586
Cap Rate 9%
$1,098,678
Alternative Uses
Best Use
Specialty Retail
$1.41M
$1.24M – $1.65M
NOI $98,881 @ 7.0% cap · market cap 8.24%
Second Best
Mixed Use
$1.38M
$1.21M – $1.61M
NOI $96,522 @ 7.0% cap · market cap 8.04%
Theoretical Best
Office A
$1.81M
$1.58M – $2.11M
NOI $126,568 @ 7.0% cap · market cap 10.55%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
5
Residential units
100%
Occupancy
Multi-tenant
Tenancy
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
421
Businesses Nearby
Explore this area
Business Placement
Demographics for 18055, PA
12,077
Population
4,946
Households
2.4
Avg Household Size
46
Median Age
39%
College-Educated
95%
High-School Grad
20.0 sq mi
ZIP Area
604
Density / Sq Mi
$90,087
Median Household Income
$52,690
Median Earnings
$1,273
Median Rent
$293,800
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 - Renovated restaurant space and occupied apartments provide distinct income components.
Where is this mixed-use property located?
The property is located at 605 Main Street Hellertown, PA.
What is the asking price?
The asking price for this property is $1,200,000.
What are key features of this property?
This property features: Historic stone mixed‑use property built in 1889; Renovated restaurant with separate dining area, pool table, and game space; Five renovated residential apartments, all fully occupied
