East Wick Office Building For
For Sale
Contact for pricing
Pending
2821 Island Ave, Philadelphia, PA 19153
43,000 SF building with long-term tenants, value-add potential.
Property Size43,800 SF
Days on Market2235
Property Features for 2821 Island Ave
General Information
Standard status
Pending
Size
43,800 SF
Class
C
Property subtype
Office
Zoning
RSA3
Occupancy
75%
Lease Type
Modified Gross
Investment Type
Value Add
Building Details
Buildings
1
Stories
2
Tenancy
Multi
Listing Agency:
KW Commercial
(215) 627-3500
Listed By:
Andre Watson · License #PA RS305752
Source:
Crexi
Added: Jul 17, 2020
Changed: Aug 8
Last Checked: Jul 24 at 6:00PM
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 KW Commercial
Investment Insights
Based on property information with market context.
Located along the primary artery in the East Wick section of the city, this is a 43,000 square-foot building. The property features long-term tenants and offers considerable space for added value.
Key Highlights
- 43,000 square‑foot building offers tremendous space for added value.
- Located on the primary artery in the East Wick section of the city.
- Long term tenants in place.
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
$576,387
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
8.06%
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%
$11,527,740
$11.5M
Cap Rate 7%
$8,234,100
$8.2M
Cap Rate 9%
$6,404,300
$6.4M
Market Conditions
NOI Build-Up for 43,800 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
$961.8K $21.96/SF
− Vacancy
−$193.3K −$4.41/SF
EGI
$768.5K $17.55/SF
− OpEx
−$192.1K −$4.39/SF
NOI
$576.4K $13.16/SF
Area
Philadelphia, PA
Vacancy
20.10%
Lease Rate
$21.96 /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%
$11,527,740
Cap Rate 7%
$8,234,100
Cap Rate 9%
$6,404,300
Alternative Uses
Best Use
Office B
$8.23M
$7.20M – $9.61M
NOI $576,387 @ 7.0% cap · market cap 8.06%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$10.68M
$9.34M – $12.46M
NOI $747,442 @ 7.0% cap · market cap 10.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
614
Businesses Nearby
Explore this area
Business Placement
Demographics for 19153, PA
11,985
Population
5,965
Households
2
Avg Household Size
41
Median Age
28%
College-Educated
92%
High-School Grad
10.1 sq mi
ZIP Area
1,187
Density / Sq Mi
$53,434
Median Household Income
$36,167
Median Earnings
$1,341
Median Rent
$198,700
Median Home Value
Market
Vacancy Rate% for Office in Philadelphia, PA
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Office building - 43,000 SF building with long-term tenants, value-add potential.
Where is this office building located?
The property is located at 2821 Island Ave Philadelphia, PA.
What is the asking price?
The asking price for this property is $7,150,000.
What are key features of this property?
This property features: 43,000 square‑foot building offers tremendous space for added value.; Located on the primary artery in the East Wick section of the city.; Long term tenants in place.
