Two-Unit Mixed-Use
For Sale
$219,000
726 FRANKLIN STREET, Reading, PA 19602
Recently fully renovated two-unit property with first-floor commercial space and a second-floor apartment.
Property Size1,468 SF
Price / SF$149.18
Days on Market104
Property Features for 726 FRANKLIN STREET
General Information
Standard status
Active
Size
1,468 SF
Property subtype
Mixed Use
Additional Details
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$203
Amenities
3
Parking.
On Street.
0.00 x 0.00
Building Details
Year Built
1900
Stories
2
Tenancy
Multi
Listing Agency:
Coldwell Banker Realty
(610) 507-6352
Listed By:
Mini Castaneda · License #RS345025
(610) 507-6352
Source:
Xome
Added: May 1
Changed: Aug 8
Last Checked: Aug 11 at 4:49AM
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 Coldwell Banker Realty
Investment Insights
Based on property information with market context.
This recently fully renovated two-unit mixed-use property is configured with a first-floor commercial space and a spacious second-floor apartment. The building is described as move-in-ready, offering an owner-occupant option for operating a business downstairs while living upstairs, or an investor option to rent the apartment.
The property is located directly across from a BARTA bus station. It is also just minutes from Santander Arena and the DoubleTree by Hilton Hotel Reading, placing it within a high-activity area.
The layout supports dual use within the same building, with commercial space on the street level and residential space above, providing flexibility for how the property can be occupied or leased.
The property is located directly across from a BARTA bus station. It is also just minutes from Santander Arena and the DoubleTree by Hilton Hotel Reading, placing it within a high-activity area.
The layout supports dual use within the same building, with commercial space on the street level and residential space above, providing flexibility for how the property can be occupied or leased.
Key Highlights
- Two‑unit property with first‑floor commercial space and a second‑floor apartment
- Recently fully renovated throughout
- Directly across from a BARTA bus station
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
$14,608
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
6.67%
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%
$292,160
$292.2K
Cap Rate 7%
$208,686
$208.7K
Cap Rate 9%
$162,311
$162.3K
Market Conditions
NOI Build-Up for 1,468 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
$20.6K $14.04/SF
− Vacancy
−$1.1K −$0.77/SF
EGI
$19.5K $13.27/SF
− OpEx
−$4.9K −$3.32/SF
NOI
$14.6K $9.95/SF
Area
Berks County, PA
Vacancy
5.50%
Lease Rate
$14.04 /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%
$292,160
Cap Rate 7%
$208,686
Cap Rate 9%
$162,311
Alternative Uses
Best Use
Specialty Retail
$208.7K
$182.6K – $243.5K
NOI $14,608 @ 7.0% cap · market cap 6.67%
Second Best
Mixed Use
$207.6K
$181.7K – $242.2K
NOI $14,533 @ 7.0% cap · market cap 6.64%
Theoretical Best
Office A
$241.0K
$210.9K – $281.2K
NOI $16,869 @ 7.0% cap · market cap 7.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,594
Businesses Nearby
Explore this area
Business Placement
Demographics for 19602, PA
19,782
Population
7,907
Households
2.5
Avg Household Size
32
Median Age
11%
College-Educated
71%
High-School Grad
2.0 sq mi
ZIP Area
9,891
Density / Sq Mi
$38,179
Median Household Income
$30,848
Median Earnings
$978
Median Rent
$73,000
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 - Recently fully renovated two-unit property with first-floor commercial space and a second-floor apartment.
Where is this mixed-use property located?
The property is located at 726 FRANKLIN STREET Reading, PA.
What is the asking price?
The asking price for this property is $219,000.
What are key features of this property?
This property features: Two‑unit property with first‑floor commercial space and a second‑floor apartment; Recently fully renovated throughout; Directly across from a BARTA bus station
