Versatile Commercial Building in
For Sale
$1,350,000
1201 NEW JERSEY Avenue NW, Washington, DC 20001
Commercial Sale - WASHINGTON, DC
Property Size4,000 SF
Lot Size0.04 Acres
Price / SF$337.50
Days on Market335
Property Features for 1201 NEW JERSEY Avenue NW
General Information
Property type
Other
Property subtype
Office
Rooms
Basement
Parking features
On Street
Subdivision
MOUNT VERNON TRIANGLE
Elementary school district
DISTRICT OF COLUMBIA PUBLIC SCHOOLS
Middle school district
DISTRICT OF COLUMBIA PUBLIC SCHOOLS
High school district
DISTRICT OF COLUMBIA PUBLIC SCHOOLS
Standard status
Active
Size
4,000 SF
Lot size
0.04 Acres
Taxes and HOA fees
Tax Annual Amount
11785
Utilities
Heating system
Forced Air
Cooling system
Central Air
Building Details
Year built
1912
Building materials
Brick
Listing Agency:
Berkshire Hathaway HomeServices PenFed Realty
(202) 608-1880
Listed By:
Lewis Van Dusen
(202) 670-0415
Added: Sep 11, 2025
Changed: Jun 9
Last Checked: Aug 11 at 11:06PM
MLS# DCDC2222334
Copyright © 2026 Bright MLS. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This property, located in Washington, DC, presents a versatile opportunity. Currently configured as an office, the over 4,000 square foot building offers potential for conversion to suit a buyer's needs. The zoning is residential with a Certificate of Occupancy for commercial use, while the basement is zoned for industrial purposes, allowing for a range of possibilities. The building is fully sprinklered and features a new fire suppression system. The basement has been recently renovated, offering a blank slate for future development.
Key Highlights
- Flexible Zoning: Zoned Residential with a CoO for Commercial and an Industrial basement, offering diverse usage possibilities.
- Large Space: Over 4,000 sqf provides ample room for various development plans.
- Conversion Potential: Existing office space can be converted to suit buyer's needs.
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
$66,000
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
4.89%
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%
$1,320,000
$1.3M
Cap Rate 7%
$942,857
$942.9K
Cap Rate 9%
$733,333
$733.3K
Market Conditions
NOI Build-Up for 4,000 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
$120.0K $30.00/SF
− Vacancy
−$14.4K −$3.60/SF
EGI
$105.6K $26.40/SF
− OpEx
−$39.6K −$9.90/SF
NOI
$66.0K $16.50/SF
Area
Washington, DC
Vacancy
12.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$1,320,000
Cap Rate 7%
$942,857
Cap Rate 9%
$733,333
Alternative Uses
Best Use
Office B
$1.81M
$1.59M – $2.12M
NOI $127,008 @ 7.0% cap · market cap 9.41%
Second Best
Mixed Use
$942.9K
$825.0K – $1.10M
NOI $66,000 @ 7.0% cap · market cap 4.89%
Theoretical Best
Office A
$2.06M
$1.80M – $2.40M
NOI $144,023 @ 7.0% cap · market cap 10.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Sprinkler system
Location Intelligence
Trade Area within ½ mile
7,021
Businesses Nearby
Explore this area
Business Placement
Demographics for 20001, DC
49,040
Population
26,728
Households
1.8
Avg Household Size
32
Median Age
78%
College-Educated
95%
High-School Grad
2.0 sq mi
ZIP Area
24,520
Density / Sq Mi
$138,730
Median Household Income
$94,675
Median Earnings
$2,464
Median Rent
$844,500
Median Home Value
Market
Vacancy Rate% for Office in Washington, DC
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Adaptable commercial space with residential and industrial zoning potential.
Where is this mixed-use property located?
The property is located at 1201 NEW JERSEY Avenue NW Washington, DC.
What is the asking price?
The asking price for this property is $1,350,000.
What are key features of this property?
This property features: Flexible Zoning: Zoned Residential with a CoO for Commercial and an Industrial basement, offering diverse usage possibilities.; Large Space: Over 4,000 sqf provides ample room for various development plans.; Conversion Potential: Existing office space can be converted to suit buyer's needs.
