Renovated Four-Unit Building in
For Sale
$1,250,000
1235 Holbrook Terrace NE, Washington, DC 20002
Newly renovated, vacant four-unit building with condo conversion potential.
Property Size3,164 SF
Price / SF$395.07
Days on Market218
Property Features for 1235 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:
Keller Williams Capital Properties
(856) 222-0077
Listed By:
Amanda Strain
(610) 679-0127
Source:
Thetristaterealestategroup
Added: Feb 7
Changed: Sep 12
Last Checked: Sep 13 at 6:21AM
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 Keller Williams Capital Properties
Investment Insights
Based on property information with market context.
This is a newly renovated, vacant four-unit building. New electrical and plumbing upgrades have been completed, along with new central air conditioning. Each unit is fully self-contained with separate meters. The property offers the potential to convert and sell as individual condos, or to live in one unit and rent the rest, with potential rents ranging from $3,500.00 to $4,300.00. It is located in a very walkable area with excellent transit and is considered a biker's paradise.
Key Highlights
- Newly renovated 4‑unit building with no Tenant Opportunity to Purchase Act (TOPA) requirements.
- Each unit is fully self‑contained with separate meters.
- New electrical and plumbing upgrades, plus new central air conditioning (CAC).
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
4.82%
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 4.82%
Second Best
Apartment 5plus
$769.5K
$673.3K – $897.8K
NOI $53,866 @ 7.0% cap · market cap 4.31%
Theoretical Best
Office A
$1.63M
$1.43M – $1.91M
NOI $114,351 @ 7.0% cap · market cap 9.15%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Multifamily in South region
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Frequently Asked Questions
What type of property is this?
Quadplex - Newly renovated, vacant four-unit building with condo conversion potential.
Where is this quadplex located?
The property is located at 1235 Holbrook Terrace NE Washington, DC.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: Newly renovated 4‑unit building with no Tenant Opportunity to Purchase Act (TOPA) requirements.; Each unit is fully self‑contained with separate meters.; New electrical and plumbing upgrades, plus new central air conditioning (CAC).
