Why 855 N 40th St Is the West Philly Multi-Family Play Investors Look For

If you’ve tried finding cash-flowing multi-family deals in University City or Spruce Hill lately, you already know the story: tight yields, fierce competition, and tired rowhomes requiring massive gut rehabs to hit modern market rents.

Sometimes, the best way to get the exact asset you want isn't buying someone else’s 100-year-old deferred maintenance, it's building from the ground up.

That's what makes the 1,125 sq. ft. vacant lot at 855 N 40th St ($100,000) worth a hard look for developers and buy-and-hold investors alike.

1. Zoned RM1: Multi-Family Flexibility

The most important detail on this parcel is the zoning: RM1 (Residential Multi-Family).

In a city where zoning variances can add months of uncertainty and legal fees, having RM1 zoning gives you a massive head start. Depending on your design and local code execution, this parcel offers the physical and zoning potential for a 2-to-3 unit residential build.

Whether you build a bi-level duplex or a 3-unit multi-family building, ground-up construction lets you deliver high-demand, modern amenities (in-unit laundry, central HVAC, open layouts) that command premium rents in 19104.

2. Location: The University City Halo

Location dictates tenant demand, and 855 N 40th St sits squarely in the path of continuous expansion:

• Under 2 miles to Drexel University & UPenn: Essential for tapping into the massive student, graduate, and faculty renter pool.

• Transit Friendly: Multiple SEPTA lines nearby, with direct routes to 30th Street Station and Center City.

• Neighborhood Growth: Belmont and Mantua have seen significant investment over the past several years as institutional growth pushes north and west from University City.

3. Clean Holding Costs While You Plan

One of the biggest risks in ground-up development is carrying costs while pulling permits, finalizing architectural blueprints, and getting contractor quotes.

At a $100,000 asking price and annual property taxes of approximately $646/year, your holding overhead is virtually negligible. You aren't paying a massive mortgage or utility bills on a vacant building while you finalize your build package.

The Bottom Line

At $100,000, 855 N 40th St represents an accessible entry point into Philadelphia ground-up development. Whether you're an experienced developer adding another multi-unit asset to your portfolio or an investor looking for a high-yield student rental play, this is a clean, zoned canvas ready for your vision.

Want to review zoning specs, comps, or talk through build costs for this lot?

Reach out directly at 215.287.4299 or book a time to discuss your West Philly portfolio goals.