Multifamily Property with
For Sale
$795,000
649-651 W CHESTNUT ST, Lancaster, PA 17603
Two buildings combine apartments with former office space and separately metered units.
Property Size5,390 SF
Price / SF$147.50
Days on Market42
Property Features for 649-651 W CHESTNUT ST
General Information
Standard status
Active
Size
5,390 SF
Total Parking Spaces
9
Property subtype
Multi-Family
Additional Details
Multifamily Units
3
Building Details
Buildings
2
Listing Agency:
U.S. Commercial Realty
(717) 735-6000
Listed By:
Thomas M McDermott
(717) 735-6000
Source:
Sandrasellstheshore
Added: Jul 20
Changed: Aug 29
Last Checked: Aug 30 at 5:40PM
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 U.S. Commercial Realty
Investment Insights
Based on property information with market context.
Located at 649-651 W Chestnut St in Lancaster, this multifamily property comprises two tax parcels and two buildings. The improvements include three large apartments and a former dental office, along with a nine-car parking lot. Newer roofs, gas heat, and separate metering for all units are among the property’s physical features.
One apartment is occupied on a month-to-month basis, while the remaining units are currently vacant. The City of Lancaster has approved a Special Exception allowing conversion of the buildings to a Nine (9) Unit Apartment Building. The property offers a combination of residential units and office space within the Chestnut Hill area.
One apartment is occupied on a month-to-month basis, while the remaining units are currently vacant. The City of Lancaster has approved a Special Exception allowing conversion of the buildings to a Nine (9) Unit Apartment Building. The property offers a combination of residential units and office space within the Chestnut Hill area.
Key Highlights
- Two tax parcels and two buildings included at 649‑651 W Chestnut St
- Three large apartments plus a former dental office
- Nine‑car parking lot
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
$53,094
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
6.68%
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%
$1,061,880
$1.1M
Cap Rate 7%
$758,486
$758.5K
Cap Rate 9%
$589,933
$589.9K
Market Conditions
NOI Build-Up for 5,390 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
$97.0K $18.00/SF
− Vacancy
−$485 −$0.09/SF
EGI
$96.5K $17.91/SF
− OpEx
−$43.4K −$8.06/SF
NOI
$53.1K $9.85/SF
Area
Lancaster County, PA
Vacancy
0.50%
Lease Rate
$18.00 /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%
$1,061,880
Cap Rate 7%
$758,486
Cap Rate 9%
$589,933
Alternative Uses
Best Use
Apartment 5plus
$758.5K
$663.7K – $884.9K
NOI $53,094 @ 7.0% cap · market cap 6.68%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.81M
$1.58M – $2.11M
NOI $126,435 @ 7.0% cap · market cap 15.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
3
Residential units
Location Intelligence
Trade Area within ½ mile
1,861
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
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Frequently Asked Questions
What type of property is this?
Multifamily property - Two buildings combine apartments with former office space and separately metered units.
Where is this multifamily property located?
The property is located at 649-651 W CHESTNUT ST Lancaster, PA.
What is the asking price?
The asking price for this property is $795,000.
What are key features of this property?
This property features: Two tax parcels and two buildings included at 649‑651 W Chestnut St; Three large apartments plus a former dental office; Nine‑car parking lot
