Profitable Restaurant with Apartments
For Sale
$538,900
650 Washington Avenue, Jermyn, PA 18433
Turnkey restaurant with apartments and parking in hometown setting.
Property Size5,300 SF
Lot Size0.46 Acres
Price / SF$101.68
Days on Market784
Property Features for 650 Washington Avenue
General Information
Standard status
Active
Size
5,300 SF
Lot size
0.46 Acres
Property subtype
Commercial/Industrial
Taxes and HOA fees
Annual Taxes
$5,256
Building Details
Year Built
1930
Listing Agency:
Cobblestone Real Estate LLC
(570) 871-2084
Listed By:
Michael James Clark III · License #RS360251
(570) 871-2084
Source:
Exitrealty
Added: Jun 19, 2024
Changed: Aug 8
Last Checked: Aug 10 at 2:27AM
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 Cobblestone Real Estate LLC
Investment Insights
Based on property information with market context.
This property presents an opportunity to acquire a fully operational and profitable restaurant business. The restaurant has been a community staple for 50 years, with the current owner maintaining and running the business for the last 20 years. The building, which can seat nearly 100 customers, has been updated with a new forced hot air, heat, and air conditioning system, a new roof, windows, and siding. The sale includes all restaurant equipment, utensils, coolers, freezers, and fountains. The property also includes a parking lot adjacent to the building with space for approximately 35 to 40 cars. Above the restaurant are three fully rented apartments with long-term tenants and below-market rents, including two one-bedroom, one-bathroom units and one two-bedroom, one-bathroom unit. The current owner is willing to assist with the transition as an employee or consultant.
Key Highlights
- Fully functioning, immediately profitable, turnkey restaurant business with 50‑year history in the community.
- Recent building updates including new HVAC, roof, windows, and siding, ensuring low maintenance for the next 20 years.
- Includes adjacent parking lot with capacity for 35‑40 cars.
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
$40,859
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
7.58%
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%
$817,180
$817.2K
Cap Rate 7%
$583,700
$583.7K
Cap Rate 9%
$453,989
$454.0K
Market Conditions
NOI Build-Up for 5,300 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
$78.9K $14.88/SF
− Vacancy
−$4.6K −$0.86/SF
EGI
$74.3K $14.02/SF
− OpEx
−$33.4K −$6.31/SF
NOI
$40.9K $7.71/SF
Area
Lackawanna County, PA
Vacancy
5.80%
Lease Rate
$14.88 /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%
$817,180
Cap Rate 7%
$583,700
Cap Rate 9%
$453,989
Alternative Uses
Best Use
Specialty Retail
$816.0K
$714.0K – $952.0K
NOI $57,121 @ 7.0% cap · market cap 10.60%
Second Best
Apartment 5plus
$583.7K
$510.7K – $681.0K
NOI $40,859 @ 7.0% cap · market cap 7.58%
Theoretical Best
Office A
$1.35M
$1.18M – $1.57M
NOI $94,167 @ 7.0% cap · market cap 17.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
227
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 18433, PA
6,416
Population
3,390
Households
1.9
Avg Household Size
45
Median Age
31%
College-Educated
96%
High-School Grad
28.8 sq mi
ZIP Area
223
Density / Sq Mi
$76,847
Median Household Income
$57,924
Median Earnings
$929
Median Rent
$201,800
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
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Similar Off Market Nearby
- Longworth's Restaurant — 615 Washington Ave, Jermyn, PA 18433
Frequently Asked Questions
What type of property is this?
Breakfast & diner - Turnkey restaurant with apartments and parking in hometown setting.
Where is this breakfast & diner located?
The property is located at 650 Washington Avenue Jermyn, PA.
What is the asking price?
The asking price for this property is $538,900.
What are key features of this property?
This property features: Fully functioning, immediately profitable, turnkey restaurant business with 50‑year history in the community.; Recent building updates including **new HVAC, roof, windows, and siding**, ensuring low maintenance for the next 20 years.; Includes adjacent parking lot with capacity for 35‑40 cars.
