409 Walnut St Reading, PA 19601

Walnut St Commons | 409 Walnut St, Reading, PA Walnut St Commons presents a stabilized 9-unit multifamily investment in the heart of Reading, PA, offering strong in-place cash flow with additional upside through rent optimization. This property has a diversified unit mix and consistent tenant demand. This asset generates a current NOI of $82,864 with a 7.57% cap rate, and offers a clear path to a pro forma NOI of $87,454 (7.99% cap rate) through modest rent increases to market levels. The unit mix consists of (3) studios, (5) one-bedroom units, and (1) two-bedroom unit, with an average rent of approximately $1,046/unit, leaving room for continued growth as units turn. Operational efficiency is a key highlight, with expenses at just ~27% of EGI, supporting strong cash flow and a 1.39+ DSCR, making this an attractive option for both conventional and DSCR financing. Investors will benefit from steady rental demand in a dense, renter-populated area, along with favorable long-term fundamentals, including projected rent growth and improving cash flow over time. Projections indicate increasing returns, with cash-on-cash returns exceeding 10% in the near term and continued growth thereafter. Investment highlights 7.57% Cap Rate (Current)
7.99% Cap Rate (Pro Forma)
8.45% Cash on Cash (Current)
10.13% Cash on Cash (Pro Forma)
9 unit multifamily property
Fee Simple ownership
Value add opportunity with below market rents
Strong demographics in Reading, PA
Laundry income projected - Units were just installed