Renovated Mixed-Use
For Sale
$475,000
731 Washington Street, Reading, PA 19601
Combined commercial and residential building with two business units and two apartments in a central Reading setting.
Property Size3,800 SF
Price / SF$125
Days on Market401
Property Features for 731 Washington Street
General Information
Standard status
Active
Size
3,800 SF
Property subtype
Multi-Family / Fee Simple
Zoning
MIX R
Financials
Asking Price
$500,000
Cap Rate
8.1%
Additional Details
Public Transit
Yes
Office Units
1
Taxes and HOA fees
Annual Taxes
$2,375
Amenities
No
No Pool
Above Grade, Below Grade
Sidewalks, Street Lights
Building Details
Year Built
1915
Year Renovated
2016
Buildings
1
Tenancy
Multi
Listing Agency:
EXP Realty, LLC
(484) 794-3080
Listed By:
Taj S Simmons · License #RS315174
(484) 794-3080
Source:
Compass
Added: Jul 27, 2025
Changed: Aug 30
Last Checked: Aug 30 at 4:27PM
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 EXP Realty, LLC
Investment Insights
Based on property information with market context.
The property consists of the combined buildings at 729 and 731 Washington Street, now operating as one 3,800-square-foot mixed-use structure. Completed renovations in 2016 created two commercial units alongside two residential apartments. The commercial component includes an office and a café with a utility surcharge, while the apartments offer one-bedroom and two-bedroom layouts. Zoning is MIX R.
Recent improvements include replacement of the roof and dormers in 2024, a remodeled bathroom in Apartment A in 2022, and a bathroom renovation with repainting in Apartment B during 2024–2025. The building dates to 1915 and includes sidewalk and street-light infrastructure along Washington Street. Its Reading location is near businesses, restaurants, and public transit.
Recent improvements include replacement of the roof and dormers in 2024, a remodeled bathroom in Apartment A in 2022, and a bathroom renovation with repainting in Apartment B during 2024–2025. The building dates to 1915 and includes sidewalk and street-light infrastructure along Washington Street. Its Reading location is near businesses, restaurants, and public transit.
Key Highlights
- 3,800‑square‑foot mixed‑use building combining 729 and 731 Washington Street
- Two commercial units: an office and a café with utility surcharge
- Two apartments with one‑bedroom and two‑bedroom layouts
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
$37,813
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
7.96%
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%
$756,260
$756.3K
Cap Rate 7%
$540,186
$540.2K
Cap Rate 9%
$420,144
$420.1K
Market Conditions
NOI Build-Up for 3,800 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
$53.4K $14.04/SF
− Vacancy
−$2.9K −$0.77/SF
EGI
$50.4K $13.27/SF
− OpEx
−$12.6K −$3.32/SF
NOI
$37.8K $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%
$756,260
Cap Rate 7%
$540,186
Cap Rate 9%
$420,144
Alternative Uses
Best Use
Specialty Retail
$540.2K
$472.7K – $630.2K
NOI $37,813 @ 7.0% cap · market cap 7.96%
Second Best
Mixed Use
$537.4K
$470.3K – $627.0K
NOI $37,620 @ 7.0% cap · market cap 7.92%
Theoretical Best
Office A
$623.8K
$545.8K – $727.8K
NOI $43,667 @ 7.0% cap · market cap 9.19%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Office units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
2,893
Businesses Nearby
Explore this area
Business Placement
Demographics for 19601, PA
35,477
Population
14,024
Households
2.5
Avg Household Size
34
Median Age
12%
College-Educated
73%
High-School Grad
3.8 sq mi
ZIP Area
9,336
Density / Sq Mi
$41,133
Median Household Income
$30,433
Median Earnings
$986
Median Rent
$110,700
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 - Combined commercial and residential building with two business units and two apartments in a central Reading setting.
Where is this mixed-use property located?
The property is located at 731 Washington Street Reading, PA.
What is the asking price?
The asking price for this property is $475,000.
What are key features of this property?
This property features: 3,800‑square‑foot mixed‑use building combining 729 and 731 Washington Street; Two commercial units: an office and a café with utility surcharge; Two apartments with one‑bedroom and two‑bedroom layouts
