Turnkey Market with Redevelopment
For Sale
$1,950,000
1201 Mount Olivet Road NE, Washington, DC 20002
Freestanding commercial building with thriving business and redevelopment potential.
Property Size3,000 SF
Price / SF$650
Days on Market110
Property Features for 1201 Mount Olivet Road NE
General Information
Standard status
Active
Size
3,000 SF
Property subtype
Commercial
Lease Term
[]
Building Details
Year Built
1955
Listing Agency:
Mega Realty & Investment Inc
(703) 534-4989
Listed By:
Diane M Lee · License #98317
Source:
Deepcreeklake
Added: May 6
Changed: Aug 23
Last Checked: Aug 23 at 7:12AM
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 Mega Realty & Investment Inc
Investment Insights
Based on property information with market context.
Located at the corner of Mt. Olivet Road and Montello Avenue NE, this commercial listing offers a 3,000-square-foot freestanding commercial building and the Northeast Supermarket business. The MU-4 zoning permits mixed-use development, blending multi-family housing with neighborhood-serving retail, office spaces, and service centers. The Northeast Supermarket has been a retail hub for the community for approximately 70 years. Recent upgrades include a new commercial roof and a new commercial cooler system. The property is located inside the target zone of the District’s multi-phase municipal revitalization plans, including The Ivy City Small Area Plan, which guides infrastructure capital into this corridor. The city's master plan prioritizes the expansion of new housing options, active pedestrian-friendly streets, and community-serving commercial retail along the Ivy City and Trinidad borders. The location is positioned blocks away from Union Market and Ivy City. The property offers air rights expansion, allowing for the development of a multi-story apartment or condo complex over ground-floor retail.
Key Highlights
- High‑upside mixed‑use redevelopment potential: MU‑4 zoning allows for multi‑family housing with retail, office, or service centers, enabling lucrative vertical development.
- Turnkey business with strong cash flow: Includes the Northeast Supermarket, a thriving business with consistent revenue under absentee ownership, ensuring immediate income.
- Strategic location in revitalization zone: Situated within the Ivy City Small Area Plan, benefiting from planned public and private infrastructure investment.
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
$77,355
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
3.97%
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%
$1,547,100
$1.5M
Cap Rate 7%
$1,105,071
$1.1M
Cap Rate 9%
$859,500
$859.5K
Market Conditions
NOI Build-Up for 3,000 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
$108.0K $36.00/SF
− Vacancy
−$4.9K −$1.62/SF
EGI
$103.1K $34.38/SF
− OpEx
−$25.8K −$8.59/SF
NOI
$77.4K $25.78/SF
Area
ZIP 20002
Vacancy
4.50%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
25.00%
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%
$1,547,100
Cap Rate 7%
$1,105,071
Cap Rate 9%
$859,500
Alternative Uses
Best Use
Specialty Retail
$1.11M
$966.9K – $1.29M
NOI $77,355 @ 7.0% cap · market cap 3.97%
Second Best
Retail
$959.6K
$839.7K – $1.12M
NOI $67,173 @ 7.0% cap · market cap 3.44%
Theoretical Best
Office A
$1.55M
$1.36M – $1.81M
NOI $108,423 @ 7.0% cap · market cap 5.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,499
Businesses Nearby
37k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 71%
Dining 29%
Denny's
Dining
10,623 visits/mo
0.4 miles
Shell
Shops & Services
9,385 visits/mo
0.4 miles
Shell
Shops & Services
8,267 visits/mo
0.4 miles
Exxon
Shops & Services
4,716 visits/mo
0.1 miles
Mobil
Shops & Services
2,898 visits/mo
0.4 miles
Demographics for 20002, DC
69,422
Population
38,459
Households
1.8
Avg Household Size
33
Median Age
70%
College-Educated
95%
High-School Grad
5.1 sq mi
ZIP Area
13,612
Density / Sq Mi
$114,482
Median Household Income
$82,909
Median Earnings
$2,140
Median Rent
$813,700
Median Home Value
Market
Vacancy Rate% for Retail in Washington, DC
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Similar Off Market Nearby
- Mudrick's Market — 1064 Bladensburg Rd NE, Washington, DC 20002
- MOM's Organic Market — 1501 New York Ave NE, Washington, DC 20002
- Compact Supermarket — 1613 montello ave ne, washington, dc 20002
- Northeast Supermarket — 1201 Mt Olivet Rd NE, Washington, DC 20002
- Safeway — 1601 Maryland Ave NE, Washington, DC 20002
Frequently Asked Questions
What type of property is this?
Grocery and convenience store - Freestanding commercial building with thriving business and redevelopment potential.
Where is this grocery and convenience store located?
The property is located at 1201 Mount Olivet Road NE Washington, DC.
What is the asking price?
The asking price for this property is $1,950,000.
What are key features of this property?
This property features: High‑upside mixed‑use redevelopment potential: MU‑4 zoning allows for multi‑family housing with retail, office, or service centers, enabling lucrative vertical development.; Turnkey business with strong cash flow: Includes the Northeast Supermarket, a thriving business with consistent revenue under absentee ownership, ensuring immediate income.; Strategic location in revitalization zone: Situated within the Ivy City Small Area Plan, benefiting from planned public and private infrastructure investment.
