4-Unit Residential Income
For Sale
$850,000
1223 Holbrook Terrace NE, Washington, DC 20002
Four-unit building with a C of O, currently operated as two rental units, with potential to revert to four units.
Property Size3,164 SF
Price / SF$268.65
Days on Market213
Property Features for 1223 Holbrook Terrace NE
General Information
Standard status
Active
Size
3,164 SF
Property subtype
Multi-Family
Zoning
R
Taxes and HOA fees
Annual Taxes
$6,805
Amenities
Natural Gas
Yes
No
Assessor
No Pool
Public
0.06
On Street
Other
490860.00
Building Details
Building Size
3,164 SF
Year Built
1937
Listing Agency:
Tesla Realty Group, LLC
(856) 222-0077
Listed By:
Francis Brennan
Source:
Thetristaterealestategroup
Added: Feb 6
Changed: Sep 6
Last Checked: Sep 7 at 5:37AM
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 Tesla Realty Group, LLC
Investment Insights
Based on property information with market context.
This offering is a 4-unit residential income building with a certificate of occupancy for four units. The current configuration reflects the owner’s use as two separate 5-bedroom rental units. According to the provided information, a buyer can convert the property back to a four-unit setup if needed.
The property is listed for sale as part of a possible package deal, with the seller indicating availability of both 1223 and 1227 Holbrook Ter NE together. The public remarks also cite strong mobility scores, including a bikeScore of 98, walkScore of 81, and transitScore of 73.
For buyers evaluating multifamily conversion and configuration options, this property’s existing C of O for four units and the ability to adjust the layout back to four units are central considerations noted in the seller’s materials.
The property is listed for sale as part of a possible package deal, with the seller indicating availability of both 1223 and 1227 Holbrook Ter NE together. The public remarks also cite strong mobility scores, including a bikeScore of 98, walkScore of 81, and transitScore of 73.
For buyers evaluating multifamily conversion and configuration options, this property’s existing C of O for four units and the ability to adjust the layout back to four units are central considerations noted in the seller’s materials.
Key Highlights
- 4‑unit building built in 1937 with a C of O
- Currently operated as two rental units, used by the owner as two 5‑bedroom units
- Can be converted back to a 4‑unit configuration if needed
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
$60,278
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
7.09%
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%
$1,205,560
$1.2M
Cap Rate 7%
$861,114
$861.1K
Cap Rate 9%
$669,756
$669.8K
Market Conditions
NOI Build-Up for 3,164 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
$91.1K $28.80/SF
− Vacancy
−$5.0K −$1.58/SF
EGI
$86.1K $27.22/SF
− OpEx
−$25.8K −$8.16/SF
NOI
$60.3K $19.05/SF
Area
ZIP 20002
Vacancy
5.50%
Lease Rate
$28.80 /SF/Yr
Expense Ratio
30.00%
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%
$1,205,560
Cap Rate 7%
$861,114
Cap Rate 9%
$669,756
Alternative Uses
Best Use
Multifamily LT 5
$861.1K
$753.5K – $1.00M
NOI $60,278 @ 7.0% cap · market cap 7.09%
Second Best
Apartment 5plus
$769.5K
$673.3K – $897.8K
NOI $53,866 @ 7.0% cap · market cap 6.34%
Theoretical Best
Office A
$1.63M
$1.43M – $1.91M
NOI $114,351 @ 7.0% cap · market cap 13.45%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,149
Businesses Nearby
Explore this area
Business Placement
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 Multifamily in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Quadplex - Four-unit building with a C of O, currently operated as two rental units, with potential to revert to four units.
Where is this quadplex located?
The property is located at 1223 Holbrook Terrace NE Washington, DC.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 4‑unit building built in 1937 with a C of O; Currently operated as two rental units, used by the owner as two 5‑bedroom units; Can be converted back to a 4‑unit configuration if needed
