7.74% CAP RATE 1 Commercial & 3 Residential C2 Zoning

Highlights:

• C2 zoning with Pedestrian-Oriented Mixed-Use Overlay — maximum use flexibility in Quakertown Borough
• Current gross annual income $61, 500 across four units
• Three residential apartments with separate entrances — stable occupancy
• Below-market residential rents — value-add upside at near-term lease renewals with zero capital expenditure
• 725 SF ground floor commercial space — food service infrastructure in place
• 6-space private rear parking lot — scarce on W. Broad Street
• Basement storage included for both ground floor units
• Going-in cap rate approximately 6.5% on current NOI
• Clear path to improved yield through residential rent normalization and commercial re-tenanting
• SBA 504 financing available for qualifying owner-occupants at 10% down
• Quakertown Borough downtown revitalization — Pedestrian-Oriented Mixed-Use Overlay policy supports long-term corridor appreciation
• Upper Bucks County trade area 60,000–80,000 residents
• Route 309 corridor — Pennsylvania Turnpike Fort Washington interchange 25 miles south
• Annual taxes $5,783 — low carrying cost relative to income potential
• Built 1920 — 3,000 SF total per assessor
• Confirmed commercial use by right on both first floor units — up to 1,325 SF ground floor commercial
• No additional zoning approval, conditional use hearing, or variance required
• Configurable as one connected 1,325 SF footprint or two separate commercial units

Description:

A confirmed zoning determination has established that 534 W. Broad Street offers up to 1,325 SF of ground floor commercial space available by right under C2 zoning — no township approval required, no conditional use process, no variance. The right exists in the zoning as written.

The property's first floor consists of two adjacent units: the approximately 725 SF former Rita's Water Ice commercial space and the approximately 600 SF Unit currently leased for 3 yrs starting at $1400 with annual escalations. Both are permitted for commercial use by right. A buyer may open the connecting wall for one 1,325 SF connected commercial footprint or operate them as two separate units for different commercial tenants or uses. The incoming owner may convert to commercial at lease expiration by right — no approval required. Units 2 and 3 residential ($925 and $1,400/month- with annual escalation) continue providing stabilized upstairs income regardless of first floor configuration decisions.

Current gross income $61,500. Going-in NOI approximately $47,950 at 25% expense ratio — 7.74% cap rate at $625,000 ask. Stabilized pro forma improves materially as residential rents reach market and first floor commercial is repositioned.

Josh Wernick - REALTOR® | Keller Williams Real Estate | 267-934-5674 | joshwernick@kw.com