Own Your Business Location. Build an Asset. Let the Apartment Help Pay for It.
5604 1/2 Chew Ave, Philadelphia, PA 19138
Mixed-Use Owner-User + Investment Opportunity | Asking Price: $225,000
What if the place you run your business from could also become an asset you own?
Or, if you’re an investor, what if you could acquire a small mixed-use property with two potential income streams and the opportunity to structure the commercial tenancy for strong operating economics?
At 5604 1/2 Chew Ave, you have both options.
The property includes a street-level commercial space with existing improvements and build-out, plus a second-floor residential apartment. Both are currently vacant, giving the next owner the flexibility to decide how to use the property.
The Opportunity at a Glance
$225,000
Asking Price
~$3,200/mo
Projected Gross Rental Income
~$38,400/yr
Projected Gross Rental Income
~15%+
Potential Cap Rate Under an NNN Commercial Lease Structure
Important: The projected cap rate is not based on an existing lease. Both spaces are currently vacant. The ~15%+ figure represents a potential investment scenario based on projected rents and an assumed triple-net commercial lease structure, subject to actual lease terms, expenses, vacancy and other operating assumptions.
Two Ways to Make This Property Work
This isn’t a one-size-fits-all investment.
There are two fundamentally different ways to approach the property, depending on whether you plan to occupy the commercial space yourself or lease both units to tenants.
Because the previous tenant’s commercial improvements and build-out remain in place, you aren’t starting with an empty commercial shell — either path benefits from the space being already built out.
Option 1
Owner-Operator
Run Your Business. Own the Building. Rent the Apartment.
If you already operate a business, you may be paying commercial rent every month. Instead of continuing to pay a landlord, you could potentially own the building your business operates from.
Use the ground-floor commercial space for your business and rent the second-floor apartment for approximately $1,400/month.
That gives you the potential to:
- Operate your business from the property
- Collect residential rental income
- Offset a portion of your ownership costs
- Build equity in the property
- Control your business location
- Own the underlying real estate
Your commercial space becomes more than an expense. You’re not simply leasing a location — you’re acquiring the location. And the apartment gives you another potential income stream upstairs.
This could make sense for:
- Contractors
- Service businesses
- Professional offices
- Retail operators
- Local entrepreneurs
- Small business owners
- Other businesses that need a street-level commercial location
The exact permitted use should be independently verified by the buyer.
Option 2
Investor
Lease Both Spaces and Create an Income-Producing Property.
Don’t need the commercial space yourself? Lease the commercial space to a business tenant and lease the apartment to a residential tenant.
Projected Market Rents
- Commercial: ~$1,800/month
- Residential: ~$1,400/month
- Total: ~$3,200/month
- Annual Gross: ~$38,400/year
The property is currently vacant, so there are no existing leases to work around. That means the new owner establishes the tenants, rents and lease terms.
Structured appropriately — for example, using an NNN commercial lease — the investor scenario is where the projected ~15%+ cap rate comes in.
The NNN Commercial Lease Scenario
Where the Cap Rate Comes In
The projected ~15%+ cap rate is specifically associated with an investment scenario in which the commercial space is leased on a triple-net (NNN) basis, with the tenant responsible for applicable property expenses according to the final lease.
This distinction matters. A cap rate is based on Net Operating Income, not simply gross rent. The property currently does not have an executed commercial lease, so the projected cap rate is dependent on how the property is ultimately leased and operated.
Here’s the math:
Projected Gross Income
$1,800/month commercial
+ $1,400/month residential
= $3,200/month
Projected Annual Gross Income
$3,200 × 12
= $38,400/year
Known Annual Expenses
Property Tax: $1,212.60
Trash: $500
Known Expenses: $1,712.60/year
Under an NNN commercial lease structure, the allocation of taxes, insurance, maintenance and other expenses would depend on the final lease.
Therefore, the ~15%+ projected cap rate should be viewed as a scenario, not an existing property performance figure or guaranteed return.
Actual cap rate will depend on:
- Executed commercial lease terms
- Actual commercial rent
- Residential rent achieved
- Vacancy
- Property taxes
- Insurance
- Maintenance and repairs
- Utilities
- Trash and other services
- Management expenses
- Other operating costs
- Final purchase price
Buyers should independently verify all income and expense assumptions and have their own financial advisor or real estate professional calculate projected NOI and cap rate based on the final lease structure.
What the Numbers Look Like
At the projected market rents:
| Monthly | Annual | |
|---|---|---|
| Commercial | ~$1,800 | ~$21,600 |
| Residential | ~$1,400 | ~$16,800 |
| Total Gross Income | ~$3,200 | ~$38,400 |
Asking Price
$225,000
Known Annual Expenses
Property Tax: $1,212.60
Trash: $500
Total Known: $1,712.60
The current information establishes the projected gross income and known expenses, while the final NOI and cap rate depend on the actual lease and operating structure.
A Small Property With Two Potential Income Streams
Ground-Floor Commercial Space
- Current Status: Vacant
- Projected Market Rent: ~$1,800/month
- Condition: Existing improvements and build-out from the previous tenant remain in place.
- Potential Use: Owner-occupied business or leased commercial space.
The existing build-out can potentially reduce the setup work and expense compared with taking an unfinished commercial shell.
Second-Floor Residential Unit
- Current Status: Vacant
- Projected Rent: ~$1,400/month
- Potential Use: Residential rental.
The apartment provides an additional potential income stream whether the ground floor is occupied by the owner or leased to a commercial tenant.
Why the Existing Build-Out Matters
The commercial space isn’t a blank shell. Existing improvements and build-out from the previous tenant remain in place.
For the right business, that could mean less work and potentially lower costs to get operational compared with starting with an unfinished commercial space.
The exact condition, suitability and permitted use should be independently verified by the buyer.
Stop Thinking Only About Rent
If you’re a business owner, your commercial rent is an operating expense. Every month, money leaves your business and goes toward someone else’s property.
Ownership changes the equation.
Instead of simply paying for occupancy, you could potentially:
Operate your business
Collect residential rent
Build equity
Control your location
Own the underlying real estate
The right buyer may be able to turn a business necessity into a real estate asset.
See the Property
Second-Floor Residential Unit
Ground-Floor Commercial Space
The commercial space includes existing improvements and build-out from the previous tenant.
What Could This Property Do For You?
That’s the real question.
Because the answer depends on what you’re trying to accomplish.
If you’re a business owner…
Own the building your business operates from.
If you’re an owner-operator…
Use the commercial space yourself while the apartment generates approximately $1,400/month in projected residential income.
If you’re an investor…
Lease both spaces and target approximately $38,400 in projected annual gross rental income.
If you’re pursuing an NNN commercial lease…
The commercial lease structure could shift certain operating expenses to the tenant and potentially support a higher NOI and projected cap rate.
If you’re looking for flexibility…
Both units are currently vacant, allowing the next owner to establish tenants and lease terms from the beginning.
If you’re looking at the purchase price…
The property is currently offered at $225,000, compared with a February 2025 Opinion of Value of $250,000.
Independent Opinion of Value
An Opinion of Value dated February 2025 placed the property’s value at:
$250,000
February 2025 Opinion of Value
$225,000
Current Asking Price
That’s a $25,000 difference between the February 2025 opinion of value and the current asking price.
The February 2025 Opinion of Value is provided for informational purposes and should not be considered a current appraisal or guarantee of market value.
Property Details
| Property | Details |
| Address | 5604 1/2 Chew Ave, Philadelphia, PA 19138 |
| Asking Price | $225,000 |
| Property Type | Mixed-Use |
| Commercial Unit | Ground Floor |
| Projected Commercial Rent | ~$1,800/month |
| Residential Unit | Second Floor |
| Projected Residential Rent | ~$1,400/month |
| Projected Gross Monthly Income | ~$3,200 |
| Projected Gross Annual Income | ~$38,400 |
| Potential Cap Rate | ~15%+ under specified NNN scenario |
| Lot Size | 17′ × 70′ |
| Lot Area | 1,190 sq. ft. |
| Building Size | 2,223 sq. ft. |
| Zoning | CMX1 (Commercial Mixed-Use) |
| Construction | Masonry |
| Annual Property Tax | $1,212.60 |
| Annual Trash | $500 |
Located in East Germantown
5604 1/2 Chew Ave, Philadelphia, PA 19138
The property is located in Philadelphia’s East Germantown neighborhood with convenient access to:
- US-1
- PA-611
- I-76
- PA-309
- Center City Philadelphia
- Surrounding Philadelphia-area communities
The area offers potential long-term neighborhood upside in addition to the property’s potential income characteristics.
Buyers should independently evaluate neighborhood conditions, market trends and future development.
The Bottom Line
One Property. Two Very Different Strategies.
Owner-Operator
Use the building.
- Operate your business downstairs.
- Rent the apartment upstairs.
- Build equity.
- Control your location.
Investor
Lease the building.
- Target approximately $3,200/month in projected gross rent.
- Structure the commercial lease appropriately.
- Potentially use an NNN lease structure.
- Calculate the actual NOI.
- Evaluate the resulting cap rate.
The opportunity isn’t simply about buying a two-story mixed-use building.
It’s about having multiple ways to make the same property work, depending on your goals.
See If the Numbers Work for You
If you’re considering using the property for your own business, leasing both spaces, or pursuing an NNN commercial lease strategy, take a closer look at the numbers and determine whether the property fits your plan.
5604 1/2 Chew Ave
Philadelphia, PA 19138
Asking Price: $225,000
Projected Gross Income: ~$38,400/year
Potential Cap Rate: ~15%+ under an assumed NNN commercial lease scenario
Projected Residential Rent: ~$1,400/month
Projected Commercial Rent: ~$1,800/month
Important Information
Projected rents and income figures are estimates based on available market rent information and are not guaranteed.
The property is currently vacant and does not have existing leases establishing the projected rents or lease structure.
The referenced ~15%+ cap rate is a projected investment scenario based on assumptions regarding rental income, operating expenses and a potential triple-net commercial lease structure. It is not a current in-place cap rate.
Actual cap rate will depend on the final purchase price, executed lease terms, actual rents, vacancy, operating expenses and the allocation of property expenses between landlord and tenants.
An NNN lease does not automatically eliminate every property expense for the owner. The specific responsibilities of the landlord and tenant must be established by the final lease agreement.
Buyers should independently verify all property information, including zoning, permitted uses, square footage, property condition, rents, expenses, taxes, insurance, utilities, maintenance obligations, lease terms, financing, market values and other information before purchasing.
The February 2025 Opinion of Value is provided for informational purposes only and should not be considered a current appraisal, valuation guarantee or representation of current market value.
No representation is made that any projected income, cap rate, savings, appreciation or other financial result will be achieved. Buyers should conduct their own due diligence and consult appropriate real estate, legal, tax and financial professionals.
Serious inquiries only. No wholesalers.
Contact us for additional property information, financial assumptions, lease information and offers.
