Listing Agency: Zommick McMahon Commercial Real Estate Inc

Listed By: James Pinckney · License #Pennsylvania AB068954 Show Phone

Source: Crexi

Added: Apr 1, 2024 Changed: Aug 13 Last Checked: Sep 2 at 3:36AM

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Investment Insights

Based on property information with market context.

This property features an 8,922-square-foot restaurant and bakery situated on 1.7 acres. The location offers excellent visibility and frontage on heavily traveled West Penn Avenue, also known as Route 422. A large parking field is available. The property has a long-standing history as a restaurant.

Key Highlights

• High‑visibility location with frontage on heavily traveled Rt 422
• Large 8,922 SF restaurant and bakery space
• Substantial 1.7‑acre lot

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

$88,781

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

5.55%

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%

$1,775,620 $1.8M

Cap Rate 7%

$1,268,300 $1.3M

Cap Rate 9%

$986,456 $986.5K

Market Conditions

NOI Build-Up for 8,922 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

$125.3K $14.04/SF

− Vacancy

−$6.9K −$0.77/SF

EGI

$118.4K $13.27/SF

− OpEx

−$29.6K −$3.32/SF

NOI

$88.8K $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%

$1,775,620

Cap Rate 7%

$1,268,300

Cap Rate 9%

$986,456

Alternative Uses

Best Use

Specialty Retail

$1.27M

$1.11M – $1.48M (±1% cap)

NOI $88,781 @ 7.0% cap · market cap 5.55%

Second Best

—

—

no second resolved use

Theoretical Best

Office A

$1.46M

$1.28M – $1.71M (±1% cap)

NOI $102,524 @ 7.0% cap · market cap 6.41%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Heidelberg Family Restaurant Restaurant Heidleberg Restaurant Restaurant

Suggested Use

Top Pick Building Supply HVAC Service Law Firm Hair Salon Dental Office (Bike/Boat/Book/etc) Store

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Location Intelligence

Trade Area within ½ mile

70

Businesses Nearby

Well-served

Demand for This Use

Explore this area Business Placement

Demographics for 19551, PA

5,075

Population

1,882

Households

2.7

Avg Household Size

45

Median Age

25%

College-Educated

90%

High-School Grad

25.3 sq mi

ZIP Area

201

Density / Sq Mi

$87,932

Median Household Income

$51,425

Median Earnings

$1,006

Median Rent

$248,800

Median Home Value

Market

Vacancy Rate% for Retail in Northeast region

6% 2019

7.1% 2020

6.5% 2021

6% 2022

5.7% 2023

5.6% 2024

6% 2025

Questions? Ask Rey

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this conventional restaurants located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Conventional restaurant - 8,922 SF restaurant and bakery with large parking field.

Where is this conventional restaurant located?

The property is located at 910 W Penn Ave Robesonia, PA.

What is the asking price?

The asking price for this property is $1,600,000.

What are key features of this property?

This property features: High‑visibility location with frontage on heavily traveled Rt 422; Large 8,922 SF restaurant and bakery space; Substantial 1.7‑acre lot