Building Details

Building Size 1,534 SF

Year Built 2026

Listing Agency: Monument Sotheby's International Realty j***@monumentsothebysrealty.com Show Phone

Listed By: Joseph A Petrone Show Phone

Source: Barnesrealestatecompany

Added: Jul 20 Changed: Aug 8 Last Checked: Aug 8 at 9:32AM

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Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Monument Sotheby's International Realty

Investment Insights

Based on property information with market context.

This 2026 residential income property is a one-level corner condo with an elevator, open-concept living space, two bedrooms, and two bathrooms. The home includes a balcony with storage, quartz countertops, stainless steel Gourmet Kitchen appliances, a ceramic tile backsplash, and luxury vinyl plank flooring throughout.

The property is within Park Potomac, with walkability to restaurants and shopping. Its single-level layout and elevator access provide a practical residential configuration, while the corner position brings added natural light to the home.

Key Highlights

• 2026 new construction
• One‑level corner condo with elevator access
• Two bedrooms and two bathrooms

Financial Insights

Estimated NOI and Cap Rate

NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).

NOI / Yr

$25,328

Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.

Cap Rate

2.86%

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$506,560 $506.6K

Cap Rate 7%

$361,829 $361.8K

Cap Rate 9%

$281,422 $281.4K

Market Conditions

NOI Build-Up for 1,534 SF Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent. EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs. OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements. NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.

Gross rent

$49.5K $32.28/SF

− Vacancy

−$3.5K −$2.26/SF

EGI

$46.1K $30.02/SF

− OpEx

−$20.7K −$13.51/SF

NOI

$25.3K $16.51/SF

Area

Montgomery County, MD

Vacancy

7.00%

Lease Rate

$32.28 /SF/Yr

Expense Ratio

45.00%

Simulate Cap Rate and NOI

Suggested Prices Based on Cap Rates Cap rates vary significantly by property type, market, and asset quality. Typical U.S. stable-market ranges: Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+) Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand) Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically) Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher) Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk) Self-Storage — 5.5% to 7.5% Medical Office — 6.0% to 7.5% Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term Rules of thumb: Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%). Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C. Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI. Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.

Cap Rate 5%

$506,560

Cap Rate 7%

$361,829

Cap Rate 9%

$281,422

Alternative Uses

Best Use

Apartment 5plus

$361.8K

$316.6K – $422.1K (±1% cap)

NOI $25,328 @ 7.0% cap · market cap 2.86%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$539.6K

$472.2K – $629.6K (±1% cap)

NOI $37,774 @ 7.0% cap · market cap 4.27%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Residential income properties

Suggested Use

Top Pick Law Firm Spa & Massage Center Building Supply Dental Office Bakery Barber Shop

Score = modeled unmet demand for each use within ~1 mi (higher = bigger opportunity). Zoning and permitted uses should be independently verified with local authorities.

Lease Details

1

Residential units

Location Intelligence

Trade Area within ½ mile

90

Businesses Nearby

Explore this area Business Placement

Demographics for 20854, MD

50,698

Population

17,119

Households

3

Avg Household Size

47

Median Age

86%

College-Educated

97%

High-School Grad

33.8 sq mi

ZIP Area

1,500

Density / Sq Mi

$250,001

Median Household Income

$118,028

Median Earnings

$3,180

Median Rent

$1,105,300

Median Home Value

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Frequently Asked Questions

What type of property is this?

Residential income property - New-construction condo with elevator access, two bedrooms, two bathrooms, and a balcony with storage.

Where is this residential income property located?

The property is located at 1121 FORTUNE TERRACE Unit 2 Potomac, MD.

What is the asking price?

The asking price for this property is $884,990.

What are key features of this property?

This property features: 2026 new construction; One‑level corner condo with elevator access; Two bedrooms and two bathrooms