24 Unit Property For Sale


Residential and Commercial Real Estate

519-527 West King Street Lancaster, Pennsylvania 17603

 $945,000. Reduced Price

This property has an excellent cash flow. It offers a cap rate of 11% with only 90% occupied. By viewing the cash flow pro forma you will see that an even higher return is easily attainable.

Email me at realstreet@frontiernet.net for a complete cash flow pro forma. I am also available on my cell phone (717)951-0201 for any questions or to set up a showing (allow 48 hours).

Potential Abounds

  • Rents are very reasonable and have room for increases
  • One leased space has washer and dryer hook ups and could easily be made into another profit center
  • The parking lot could be leased as individual spaces, nearby spots run as high as $55 per space
  • The garage could be fitted out for smaller storage units

 The surrounding area is mixed with commercial and residential. King St is the main route running east through the city. This makes for exceptional public transportation with a bus stop right outside the front door. Restaurants and shopping are within easy walking distance.

The property consists of 14 residential units, 6 store fronts, 3 storage areas and a leasable parking lot.

Residential; this building was built as an apartment; therefore the layout is properly done. It is not a converted building that has access and egress problems. From the front of the building you have three entrances to the residential units, each evenly spaced allowing access to 4 units each. Two additional units are accessed from Grant St.

Commercial; Six glass windowed store fronts grace the front of the building. All six supply the neighborhood with its retail needs. Three of these are grocery related, one hair salon, an appliance store and a clothing store; making this property a vital part of the region’s economy. Grant St provides access to the remaining commercial units. Included with the property on the adjacent parcel is a 29 space parking lot.

All units have tenant paid heat.

_____________________________________________________________________

The following comments are extracted from a 2008 appraisal.

Changes made in the last two years, I noted after the comments.

EXTERIOR DESCRIPTION

  • Foundation: Concrete reinforced with steel with a small mechanical basement
  • Structural Framing: Masonry framing
  • Exterior Walls: Brick
  • Building Height: This is a three-story building with a maximum height of 36‘
  • Roof Cover: Rubber; twelve years old
  • Doors and Windows: Average condition; consistent with current market standards. There are nine entrances to the structure; including seven storefront doors and three separate, exterior apartment doors. Twenty-one interior doors are new. There are no loading facilities. There is one drive-in door at the rear of the structure. The front of the building has sixteen, large glass replacement windows.
  • Exterior Condition: Average
  • Special Features: Glass doors and large storefront windows on the seven commercial units; shingled roof overhang with mounted signage over the  commercial units; double windows in apartment units; fire escape at rear of building.
  • Comments: The front façade of the building has good architectural details which are visually blocked by trees.

 

INTERIOR DESCRIPTION

  • Fit Out: Studded walls covered with painted drywall and plaster
  • Partitioning: The apartment units are highly partitioned. The commercial storefronts have an open floor plan.
  • Floor Cover: Mix of vinyl and hardwood
  • Ceilings: Drop acoustic tile; painted drywall and plaster
  • Heating and Cooling: Oil-fired, hot water heating system with no central air-conditioning.

There is a 5,000 gallon oil tank. Twelve of the apartment units have heat supplied by the ownership.

  • Electrical: 100 and 200 Amp circuit breaker panels with adequate distribution; all units are separately metered.
  • Lighting: Incandescent and fluorescent
  • Plumbing: Fourteen full baths, five half-baths and twelve kitchens. The two efficiency units have no kitchen. The distribution is via PVC & copper. The floor coverings are vinyl. Most apartment units have clawfoot tubs. The sewer hook-ups have been upgraded.
  • Sprinkler System: None
  • Remodeling: Remodeling is on an on-going basis; two apartment units are currently being remodeled.  All storefronts have new gas meters.
  • Interior Condition: Average

 

Overall, the property has average functional utility and is competitive within the general market. The design is functional.

 _____________________________________________________________________

Since these comments were made on the appraisal we have made the following improvements;

  • Completely gutted and remodeled 2 units.
  • Switched to electric heat making it 100% tenant paid.
  • Re-roofed a large portion of the roof

 

Email me at realstreet@frontiernet.net for a complete cash flow pro forma. I am also available on my cell phone (717)951-0201 for any questions or to set up a showing (allow 48 hours).

Keep in mind that if this property is larger than you are looking for, my 4 unit may fit your portfolio. Click here to view.

Post Note: I being an owner, am also now a licenced Realtor in PA

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Published in: on October 12, 2010 at 9:14 pm  Comments (2)  

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2 CommentsLeave a comment

  1. […] Within a week I have my first listing. This is a 24 unit property I am a partner in. We were wanting to put it on the market as soon as I get my license. Well, here it is, click here to view. […]

  2. Why sell it, why not hold it long term for the cashflow?


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