Single-Level Residential Income
For Sale
$914,969
1121 FORTUNE TERRACE Unit 408, Potomac, MD 20854
Two bedrooms, two full baths, and a den are arranged in a low-maintenance condominium setting.
Property Size1,566 SF
Days on Market11
Property Features for 1121 FORTUNE TERRACE Unit 408
General Information
Standard status
Active
Size
1,566 SF
Property subtype
Unit/Flat/Apartment
Taxes and HOA fees
Annual Taxes
$11,836
Building Details
Building Size
1,566 SF
Year Built
2026
Listing Agency:
Monument Sotheby's International Realty
(240) 274-1219
Listed By:
Joseph A Petrone
(240) 274-1219
Source:
Barnesrealestatecompany
Added: Jul 30
Changed: Aug 8
Last Checked: Aug 8 at 9:48AM
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 offers a single-level condominium layout with two bedrooms, two full baths, and a den. The central living area combines the kitchen and gathering room, with a quartz waterfall island, Calacatta Laza quartz surfaces, polished white tile backsplash, KitchenAid stainless steel gourmet appliances, and Korbett Greyhound cabinetry. Luxury vinyl plank flooring finishes the main living areas, while the primary suite provides a separate bedroom retreat. The additional bedroom and den support flexible residential use, including guest accommodations, office space, or hobbies. Elevator access adds convenience within the building.
The property is located in the Park Potomac community, with shopping and dining situated steps away. Condominium living provides a low-maintenance format, and the combination of bedroom, bath, and den spaces creates a practical layout for a range of residential occupants.
The property is located in the Park Potomac community, with shopping and dining situated steps away. Condominium living provides a low-maintenance format, and the combination of bedroom, bath, and den spaces creates a practical layout for a range of residential occupants.
Key Highlights
- Two bedrooms, two full baths, and a den
- Single‑level condominium layout with elevator access
- Quartz waterfall island and Calacatta Laza quartz countertops
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
$25,857
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
2.83%
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%
$517,140
$517.1K
Cap Rate 7%
$369,386
$369.4K
Cap Rate 9%
$287,300
$287.3K
Market Conditions
NOI Build-Up for 1,566 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
$50.6K $32.28/SF
− Vacancy
−$3.5K −$2.26/SF
EGI
$47.0K $30.02/SF
− OpEx
−$21.2K −$13.51/SF
NOI
$25.9K $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%
$517,140
Cap Rate 7%
$369,386
Cap Rate 9%
$287,300
Alternative Uses
Best Use
Apartment 5plus
$369.4K
$323.2K – $431.0K
NOI $25,857 @ 7.0% cap · market cap 2.83%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$550.9K
$482.0K – $642.7K
NOI $38,562 @ 7.0% cap · market cap 4.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
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
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Two bedrooms, two full baths, and a den are arranged in a low-maintenance condominium setting.
Where is this residential income property located?
The property is located at 1121 FORTUNE TERRACE Unit 408 Potomac, MD.
What is the asking price?
The asking price for this property is $914,969.
What are key features of this property?
This property features: Two bedrooms, two full baths, and a den; Single‑level condominium layout with elevator access; Quartz waterfall island and Calacatta Laza quartz countertops
