Property Description:

The ~15%+ cap rate is a projected scenario, not an in-place cap rate. The property is currently vacant and does not have existing leases establishing the projected rents or NNN structure.

THE INVESTMENT THESIS

Acquire the property for $225,000 and potentially create two income streams from one mixed-use asset.

Commercial: ~$1,800/month
Residential: ~$1,400/month
Total: ~$3,200/month
Annual Gross: ~$38,400

At the asking price, the projected gross rental yield is approximately 17.1%.

The actual cap rate depends on Net Operating Income (NOI), not gross income. Under an assumed triple-net commercial lease, applicable expenses may be allocated to the commercial tenant according to the final lease terms. This is the scenario behind the referenced ~15%+ projected cap rate.

KNOWN EXPENSES

Property Tax: $1,212.60/year
Trash: $500/year
Known Annual Expenses: $1,712.60
Additional expenses may include insurance, maintenance, utilities, vacancy, management, repairs, leasing costs and other operating expenses.
Final NOI and cap rate should be calculated using actual lease terms and operating expenses.

COMMERCIAL SPACE
The ground-floor commercial space is currently vacant and includes existing improvements and build-out from the previous tenant.
Projected Market Rent: ~$1,800/month
An investor could potentially pursue an NNN commercial lease, subject to tenant demand, negotiations and the final lease agreement.
An NNN structure may shift certain property expenses to the commercial tenant. The final lease determines the allocation of taxes, insurance, maintenance and other expenses.

RESIDENTIAL UNIT

The second-floor apartment is currently vacant.

Projected Rent: ~$1,400/month
Projected Annual Residential Income: ~$16,800
This provides a second potential income stream alongside the commercial space.

PROJECTED INCOME

Commercial: ~$21,600/year
Residential: ~$16,800/year
Total Projected Gross: ~$38,400/year
Because both units are vacant, the buyer has the opportunity to establish new tenants, rents and lease terms rather than inheriting existing leases.
Projected income is not existing income and should be independently underwritten.

PROPERTY DETAILS

Address: 5604 1/2 Chew Ave, Philadelphia, PA 19138

Asking Price: $225,000
Property Type: Mixed-Use
Building Size: 2,223 SF
Lot Size: 1,190 SF
Lot Dimensions: 17' × 70'
Zoning: CMX1 Commercial Mixed-Use
Construction: Masonry
Commercial: Ground Floor
Residential: Second Floor
Current Status: Vacant

VALUE REFERENCE
A February 2025 Opinion of Value placed the property at $250,000.
Current Asking Price: $225,000
That's a $25,000 difference between the February 2025 Opinion of Value and the current asking price.
The Opinion of Value is provided for informational purposes and should not be considered a current appraisal or guarantee of market value.

OWNER-OPERATOR OPTION
A business owner could occupy the ground-floor commercial space while renting the second-floor apartment.
Instead of paying commercial rent to another landlord, the owner could control the property, operate their business from it, collect residential income and build equity.
This creates a different economic analysis because the commercial space would be owner-occupied rather than generating commercial rental income.

EXISTING COMMERCIAL BUILD-OUT
The previous tenant's commercial improvements and build-out remain in place, minus fixtures and equipment, potentially reducing the work required to put the space into operation compared with an unfinished commercial shell.

Buyer should independently inspect the property and determine whether the existing improvements are suitable for the intended use.

The property is zoned CMX1 Commercial Mixed-Use.

AS-IS SALE

Property is being offered and sold AS-IS, WHERE-IS.
Buyer is responsible for conducting all inspections and due diligence and should rely on their own evaluation of the property.
Any seller-owned fixtures, equipment, furnishings, personal property or other items not intended to convey with the property will be removed prior to sale.
The property will be conveyed in its agreed-upon condition at closing.
THE DEAL AT A GLANCE