803 Mtn Home Rd Reading, PA 19608-9319

Property Details for 803 Mtn Home Rd

Year built

1985

Lot size

0.38 lot acres

Property size

2,540 SF

Property type

Office buildings

APN

4386-13-03-0944

APU

438613030944

Description

This fee-simple medical office building, located at 803 Mountain Home Rd, Sinking Spring, PA 19608, presents a compelling investment opportunity. The 4,963 square foot building is currently 100% occupied by Smile Brands Inc., a major dental support organization with over 700 offices nationwide. Built in 1985 and situated on a 0.38-acre lot, the property boasts a strategic location just off Benjamin Franklin Highway, experiencing approximately 126,000 vehicles per day, ensuring high visibility and accessibility. The current lease commenced September 30, 2019, and expires September 30, 2029, with two five-year renewal options. The asking price is $799,081, representing $161 per square foot, a price point below typical replacement costs for dental office build-outs. The property generates a strong NOI of $73,915, resulting in a 9.25% cap rate. The lease includes scheduled 7.5% rental increases after the initial five-year option, providing built-in protection against inflation and enhanced future cash flow. The surrounding area demonstrates dense and affluent demographics, with a population exceeding 1,100,000 within a five-mile radius and average incomes surpassing $118,705, supporting consistent demand for dental services. The tenant's significant investment in the location and the inherent stability of the healthcare sector further enhance the investment's appeal. This offering presents a rare opportunity to acquire a well-located, high-performing medical office building with a strong, established tenant and significant upside potential.