Mixed-Use Building in U
For Sale
$1,895,000
1508 U Street, Washington, DC 20009
Mixed-use property in vibrant U Street Corridor, Washington, D.C.
Property Size3,576 SF
Price / SF$529.92
Days on Market161
Property Features for 1508 U Street
General Information
Standard status
Active
Size
3,576 SF
Property subtype
Multifamily
Occupancy
13%
Amenities
Prime U Street Corridor Location Steps From 14th & U with Strong Foot Traffic and Visibility
Flexible MU-4 Zoning Allowing Retail, Office, and Multifamily Uses
Fully Vacant Bi-Level Office and First-Floor Retail Offering Immediate Lease-Up or Owner-User Opportunity
Great Streets Grant Eligible with Potential Up to $80,000 for Improvements
Four-Story, 3,576 SF Building Renovated in 2020
Excellent Transit Access Near U Street Metro, Metrobus, and Capital Bikeshare
Building Details
Units
2
Listing Agency:
Washington, D.C. Office
Listed By:
Stacey Milam · License #License(s): MD: 526147, DC: SP101423, VA: 0225 077593
(202) 536-3705
Source:
Marcusmillichap
Added: Apr 8
Changed: Sep 14
Last Checked: Sep 14 at 5:43AM
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 Washington, D.C. Office
Investment Insights
Based on property information with market context.
Located in the U Street Corridor of Washington, D.C., the mixed-use property at 1508 U Street NW features office and retail space. The building is positioned near the intersection of 14th Street and U Street, benefiting from visibility and foot traffic, with access to retail, dining, and entertainment options. Originally constructed in 1900 and renovated in 2020, the Class B building contains approximately 3,576 square feet across four stories. It includes a bi-level office suite and a first-floor retail space, both to be delivered vacant. The property is zoned Mixed-Use (MU-4), allowing for retail, office, and multifamily uses. The layout supports multiple tenancy configurations, with separate access points for the retail and office components. The property is eligible for the Great Streets Grant Program, offering potential funding of up to $80,000 for renovations, equipment, and storefront improvements. The U Street Metro Station is located approximately 0.4 miles away, with access to Farragut North, Shaw-Howard University Station, and Union Station. The property is 6.2 miles from Ronald Reagan Washington National Airport.
Key Highlights
- Prime location in the heart of the U Street Corridor, a vibrant and high‑traffic commercial district in Washington, D.C.
- Mixed‑use property with both office and retail space, offering diverse income potential.
- Delivered vacant, providing immediate lease‑up potential for investors or owner‑occupancy opportunities.
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
$72,206
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
3.81%
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%
$1,444,120
$1.4M
Cap Rate 7%
$1,031,514
$1.0M
Cap Rate 9%
$802,289
$802.3K
Market Conditions
NOI Build-Up for 3,576 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
$125.3K $35.04/SF
− Vacancy
−$9.8K −$2.73/SF
EGI
$115.5K $32.31/SF
− OpEx
−$43.3K −$12.12/SF
NOI
$72.2K $20.19/SF
Area
ZIP 20009
Vacancy
7.80%
Lease Rate
$35.04 /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%
$1,444,120
Cap Rate 7%
$1,031,514
Cap Rate 9%
$802,289
Alternative Uses
Best Use
Mixed Use
$1.03M
$902.6K – $1.20M
NOI $72,206 @ 7.0% cap · market cap 3.81%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.84M
$1.61M – $2.15M
NOI $128,757 @ 7.0% cap · market cap 6.79%
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
7,768
Businesses Nearby
Explore this area
Business Placement
Demographics for 20009, DC
53,357
Population
31,824
Households
1.7
Avg Household Size
34
Median Age
84%
College-Educated
97%
High-School Grad
1.3 sq mi
ZIP Area
41,044
Density / Sq Mi
$140,555
Median Household Income
$99,606
Median Earnings
$2,346
Median Rent
$727,800
Median Home Value
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property in vibrant U Street Corridor, Washington, D.C.
Where is this mixed-use property located?
The property is located at 1508 U Street Washington, DC.
What is the asking price?
The asking price for this property is $1,895,000.
What are key features of this property?
This property features: Prime location in the heart of the U Street Corridor, a vibrant and high‑traffic commercial district in Washington, D.C.; Mixed‑use property with both office and retail space, offering diverse income potential.; Delivered vacant, providing immediate lease‑up potential for investors or owner‑occupancy opportunities.
