Downingtown Mixed-Use Investment
For Sale
Contact for pricing
137 W Lancaster Ave, Downingtown, PA 19335
Mixed-use property with storefront and apartment near transportation.
Property Size3,000 SF
Price / SF$143.30
Days on Market1514
Property Features for 137 W Lancaster Ave
General Information
Standard status
Active
Size
3,000 SF
Class
B
Total Parking Spaces
8
Property subtype
Mixed Use
Occupancy
100%
Building Details
Year Built
1950
Buildings
1
Units
2
Tenancy
Multi
Listing Agency:
Springer Realty Group
(610) 209-9219
Listed By:
Peter Gustis · License #PA RS295392
Source:
Crexi
Added: Jul 8, 2022
Changed: Aug 14
Last Checked: Aug 26 at 1:10AM
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 Springer Realty Group
Investment Insights
Based on property information with market context.
Located on Main Street in Downingtown, this mixed-use property features a storefront and a two-bedroom apartment with one bathroom. The property is situated one block from the Downingtown Train Station and half a block from the Septa Bus Stop, offering convenient access to transportation. The storefront generates $2,000 in monthly income and includes a full bathroom with a shower. The second-floor apartment brings in $1,200 per month. The property includes eight parking spots. The property generates approximately $38,400 in yearly income with $7,724 in yearly expenses, resulting in a cap rate of 6.8%. The property offers potential as an investment or a location for a business. The owner is relocating, and the business is not included in the sale. The total property size is 3,000 square feet.
Key Highlights
- High Income Potential: Approximately $38,400 yearly income.
- Strong Cap Rate: 6.8% capitalization rate.
- Prime Location: Right on Main Street in Downingtown.
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
$33,907
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
7.89%
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%
$678,140
$678.1K
Cap Rate 7%
$484,386
$484.4K
Cap Rate 9%
$376,744
$376.7K
Market Conditions
NOI Build-Up for 3,000 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
$54.0K $18.00/SF
− Vacancy
−$5.6K −$1.85/SF
EGI
$48.4K $16.15/SF
− OpEx
−$14.5K −$4.84/SF
NOI
$33.9K $11.30/SF
Area
Chester County, PA
Vacancy
10.30%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
30.00%
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%
$678,140
Cap Rate 7%
$484,386
Cap Rate 9%
$376,744
Alternative Uses
Best Use
Mixed Use
$656.8K
$574.7K – $766.3K
NOI $45,978 @ 7.0% cap · market cap 10.70%
Second Best
Retail
$484.4K
$423.8K – $565.1K
NOI $33,907 @ 7.0% cap · market cap 7.89%
Theoretical Best
Office A
$909.6K
$795.9K – $1.06M
NOI $63,670 @ 7.0% cap · market cap 14.81%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
947
Businesses Nearby
80k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 63%
Dining 30%
Home Improvements & Furnishings 7%
Wawa
Shops & Services
39,933 visits/mo
0.4 miles
McDonald's
Dining
22,208 visits/mo
0.2 miles
Turkey Hill Minit Market
Shops & Services
6,019 visits/mo
0.4 miles
Sherwin-Williams Paint Store
Home Improvements & Furnishings
5,792 visits/mo
0.2 miles
Truist
Shops & Services
3,493 visits/mo
0.3 miles
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
Market
Vacancy Rate% for Retail in Northeast region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property with storefront and apartment near transportation.
Where is this mixed-use property located?
The property is located at 137 W Lancaster Ave Downingtown, PA.
What is the asking price?
The asking price for this property is $429,900.
What are key features of this property?
This property features: High Income Potential: Approximately $38,400 yearly income.; Strong Cap Rate: **6.8% capitalization rate.**; Prime Location: Right on Main Street in Downingtown.
