13-Unit Apartment
New
For Sale
$1,825,000
8 PAUL NELMS DRIVE, Downingtown, PA 19335
Thirteen one-bedroom apartments are leased to private-pay tenants in Downingtown.
Property Size8,595 SF
Price / SF$212.33
Days on Market5
Property Features for 8 PAUL NELMS DRIVE
General Information
Standard status
Active
Size
8,595 SF
Property subtype
Commercial
Occupancy
100%
Units
Unit Mix
13 x 1BR
Multifamily Units
13
Building Details
Year Built
1900
Listing Agency:
Real of Pennsylvania
(855) 450-0442
Listed By:
Beau McGettigan · License #RS329721
(484) 459-7882
Source:
Cummingsrealtors
Added: Sep 10
Changed: Sep 13
Last Checked: Sep 14 at 7:50AM
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 Real of Pennsylvania
Investment Insights
Based on property information with market context.
Located at 8 Paul Nelms Drive in Downingtown, this 8,595-square-foot apartment property contains 13 one-bedroom units. Built in 1900, the building is fully leased to private-pay tenants, with no income-restriction requirements identified in the property information.
An additional land lot is included and may support future development subject to applicable approvals. The offering is also part of a larger 72-unit portfolio comprising 10 multifamily and mixed-use investment properties across Chester County, Pennsylvania.
An additional land lot is included and may support future development subject to applicable approvals. The offering is also part of a larger 72-unit portfolio comprising 10 multifamily and mixed-use investment properties across Chester County, Pennsylvania.
Key Highlights
- 13 one‑bedroom apartment units
- 100% leased to private‑pay tenants
- 8,595‑square‑foot property built in 1900
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
$93,199
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
5.11%
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%
$1,863,980
$1.9M
Cap Rate 7%
$1,331,414
$1.3M
Cap Rate 9%
$1,035,544
$1.0M
Market Conditions
NOI Build-Up for 8,595 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
$183.6K $21.36/SF
− Vacancy
−$14.1K −$1.64/SF
EGI
$169.5K $19.72/SF
− OpEx
−$76.3K −$8.87/SF
NOI
$93.2K $10.84/SF
Area
Chester County, PA
Vacancy
7.70%
Lease Rate
$21.36 /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%
$1,863,980
Cap Rate 7%
$1,331,414
Cap Rate 9%
$1,035,544
Alternative Uses
Best Use
Apartment 5plus
$1.33M
$1.16M – $1.55M
NOI $93,199 @ 7.0% cap · market cap 5.11%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.61M
$2.28M – $3.04M
NOI $182,414 @ 7.0% cap · market cap 10.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Current Use
Lease Details
13
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
250
Businesses Nearby
Explore this area
Business Placement
Demographics for 19335, PA
52,406
Population
20,276
Households
2.6
Avg Household Size
40
Median Age
62%
College-Educated
98%
High-School Grad
43.3 sq mi
ZIP Area
1,210
Density / Sq Mi
$136,839
Median Household Income
$69,850
Median Earnings
$1,647
Median Rent
$464,400
Median Home Value
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Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in Northeast region
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Frequently Asked Questions
What type of property is this?
Apartment building - Thirteen one-bedroom apartments are leased to private-pay tenants in Downingtown.
Where is this apartment building located?
The property is located at 8 PAUL NELMS DRIVE Downingtown, PA.
What is the asking price?
The asking price for this property is $1,825,000.
What are key features of this property?
This property features: 13 one‑bedroom apartment units; 100% leased to private‑pay tenants; 8,595‑square‑foot property built in 1900
