Four-Unit Residential Income
For Sale
$925,000
1227 Holbrook Terrace NE, Washington, DC 20002
A 4-unit residential income property with two vacant units and two currently occupied.
Property Size3,164 SF
Price / SF$292.35
Days on Market233
Property Features for 1227 Holbrook Terrace NE
General Information
Standard status
Active
Size
3,164 SF
Property subtype
Multi-family
Occupancy
50%
Lease Term
[]
Additional Details
Multifamily Units
4
Building Details
Year Built
1937
Tenancy
Multi
Listing Agency:
Michaels Realty,Inc.
Listed By:
Abiodun Olorunwunmi
(301) 306-1777
Source:
Deepcreeklake
Added: Jan 23
Changed: Sep 12
Last Checked: Sep 13 at 9:09AM
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 Michaels Realty,Inc.
Investment Insights
Based on property information with market context.
This property is a 4-unit residential income asset. Public remarks indicate two units are vacant and two units are currently occupied.
The sale listing notes the opportunity to acquire this property in a package with 1223 and 1227 Holbrook Ter. NE, described as being offered together for a combined purchase price.
As presented in the listing materials, the asset consists of four separate units within a single multifamily property.
The sale listing notes the opportunity to acquire this property in a package with 1223 and 1227 Holbrook Ter. NE, described as being offered together for a combined purchase price.
As presented in the listing materials, the asset consists of four separate units within a single multifamily property.
Key Highlights
- 4‑unit residential income property (year built 1937)
- Two units currently vacant and two units currently occupied
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
6.52%
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 6.52%
Second Best
Apartment 5plus
$769.5K
$673.3K – $897.8K
NOI $53,866 @ 7.0% cap · market cap 5.82%
Theoretical Best
Office A
$1.63M
$1.43M – $1.91M
NOI $114,351 @ 7.0% cap · market cap 12.36%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
4
Residential units
50%
Occupancy
Multi-tenant
Tenancy
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
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Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Quadplex - A 4-unit residential income property with two vacant units and two currently occupied.
Where is this quadplex located?
The property is located at 1227 Holbrook Terrace NE Washington, DC.
What is the asking price?
The asking price for this property is $925,000.
What are key features of this property?
This property features: 4‑unit residential income property (year built 1937); Two units currently vacant and two units currently occupied
