MLS® ID: PALH112496
624 MAXWELL STREET N
ALLENTOWN, Pennsylvania, 18109 $870,000
A mixed-use rental property located in Allentown, Pennsylvania. Built in 1914, the property is a three-story walk-up with brick exterior and off-street parking for both the apartment tenants and the restaurant customers.The residential portion of the offering consists of 8 apartments, (4) one-bedroom and (4) two-bedroom units. Tenants pay for their own electric which includes cooking and hot water. The tenants in the two lower-level units also pay for heat. The owner is responsible for heat-ing six of the eight apartments, and the water, sewer and trash for all eight of the apartments. Current ownership recently installed a high-efficiency gas-fired, direct vent, condensing boiler equipped with an outdoor reset control (Evergreen Series, EVG-299, 95.5% AFUE), and baseboard electric heaters in the two lower-level units. There are value-add opportunities available with the residential portion of the prop-erty. Six of the eight apartment units have been renovated leaving a new owner the opportunity to complete renovations on the remaining two units and increase rental income. In addition, current tenant/lease changes can be made to further increase the rental income.The commercial portion is currently leased by Casa de Pollo Restaurant. Pursuant to the Lease, there are 3% annual rental increases (next increase starts August 1, 2020) with the tenant responsible for all maintenance and utility expenses except water/sewer which is charged back to the tenant ($75 per month). The tenant has showed commitment to the space by making improvements to the interior of the restau-rant and replacing the signage. Further, the tenant has begun the conversion from electric heat/propane cooking to gas heat/cooking. In the last year alone, the tenant has invested over $33,000 towards improvements to the restaurant's interior.During the past five years, over $1 billion has been spent in revitalization efforts within the City of Allentown. Much of the focus has been on building new Class ~A~ office space and attracting companies to relocate their headquarters to the Allentown area. Recently, Urban Land Institute recognized the city~s efforts by awarding Allentown with ~global recognition~. Allentown was named 1 of 13 winners of the Glob-al Award for Excellence for 2017-18. The revitalization of Allentown has brought many new jobs to the area and allowed for significant apartment rental growth.The property at 624-626 Maxwell Street provides a new owner the opportunity to purchase 8 apartments with commercial space (restaurant) in one of the more sought-after markets in Pennsylvania. For offering memorandum, contact 215-989-4440.