Mixed-Use Development
For Sale
$1,458,000
901 2nd St NE, Washington, DC 20002
MU-5A mixed-use property with redevelopment potential for approximately nine apartment units near Union Station and Union Market.
Property Size5,771 SF
Price / SF$252.64
Days on Market105
Property Features for 901 2nd St NE
General Information
Standard status
Active
Size
5,771 SF
Property subtype
Mixed-Use
Zoning
MU-5A
Amenities
MU-5A Zoned Development Opportunity Allowing Approximately Nine Units By-Right
Approximately 5,771 SF Development Potential in the NoMa/Union Market Corridor
Projected 7.41+ Stabilized Cap Rate with Strong Long-Term Upside
Flexible Opportunity for a Developer, Investor, or Owner/User
Blocks from Union Station and Union Market
Surrounded by Major Employers, Retail, Dining, and Entertainment Amenities
Building Details
Building Size
5,771 SF
Year Built
1903
Listing Agency:
Washington, D.C. Office
Listed By:
Krystin Gambrell · License #License(s): MD: 5020798, DC: SP40004522
(202) 536-3729
Source:
Marcusmillichap
Added: Jun 1
Changed: Sep 3
Last Checked: Sep 13 at 4:08AM
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.
Marcus & Millichap is pleased to present 901 2nd Street NE in Washington, D.C., a mixed-use development or owner/user opportunity in the NoMa/Union Market submarket. The property offers a redevelopment path under MU-5A zoning, with the potential to construct approximately nine apartment units as a matter-of-right, or to develop a boutique multifamily or condominium asset totaling approximately 5,771 square feet. The existing building configuration also supports an owner/user plan to occupy all or a portion of the property while retaining future redevelopment optionality.
The site is positioned on a prominent corridor just blocks from Union Station and within walking distance of Union Station, which provides access to Amtrak, MARC, Metro, and intercity bus service. It is also minutes from Union Market, a retail and dining destination. Nearby employers highlighted include Google, NPR, SiriusXM, and the U.S. Department of Justice, with retailers and amenities noted such as Trader Joe’s, Whole Foods, REI, Starbucks, Chick-fil-A, CVS, and Giant.
Based on projected stabilization, the property is anticipated to achieve a 7.41%+ stabilized CAP rate. The location’s visibility and accessibility are expected to support a range of uses, including commercial, creative office, showroom, retail, and live/work.
The site is positioned on a prominent corridor just blocks from Union Station and within walking distance of Union Station, which provides access to Amtrak, MARC, Metro, and intercity bus service. It is also minutes from Union Market, a retail and dining destination. Nearby employers highlighted include Google, NPR, SiriusXM, and the U.S. Department of Justice, with retailers and amenities noted such as Trader Joe’s, Whole Foods, REI, Starbucks, Chick-fil-A, CVS, and Giant.
Based on projected stabilization, the property is anticipated to achieve a 7.41%+ stabilized CAP rate. The location’s visibility and accessibility are expected to support a range of uses, including commercial, creative office, showroom, retail, and live/work.
Key Highlights
- MU‑5A zoned mixed‑use property with redevelopment potential for approximately 9 apartment units as a matter‑of‑right
- Approximately 5,771 SF planned boutique multifamily/condominium development opportunity
- Year built: 1903
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
$104,657
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
7.18%
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%
$2,093,140
$2.1M
Cap Rate 7%
$1,495,100
$1.5M
Cap Rate 9%
$1,162,856
$1.2M
Market Conditions
NOI Build-Up for 5,771 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
$180.1K $31.20/SF
− Vacancy
−$12.6K −$2.18/SF
EGI
$167.5K $29.02/SF
− OpEx
−$62.8K −$10.88/SF
NOI
$104.7K $18.13/SF
Area
ZIP 20002
Vacancy
7.00%
Lease Rate
$31.20 /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%
$2,093,140
Cap Rate 7%
$1,495,100
Cap Rate 9%
$1,162,856
Alternative Uses
Best Use
Office B
$2.75M
$2.41M – $3.21M
NOI $192,515 @ 7.0% cap · market cap 13.20%
Second Best
Mixed Use
$1.50M
$1.31M – $1.74M
NOI $104,657 @ 7.0% cap · market cap 7.18%
Theoretical Best
Office A
$2.98M
$2.61M – $3.48M
NOI $208,570 @ 7.0% cap · market cap 14.31%
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
5,792
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
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Market
Vacancy Rate% for Office in Washington, DC
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Frequently Asked Questions
What type of property is this?
Apartment building - MU-5A mixed-use property with redevelopment potential for approximately nine apartment units near Union Station and Union Market.
Where is this apartment building located?
The property is located at 901 2nd St NE Washington, DC.
What is the asking price?
The asking price for this property is $1,458,000.
What are key features of this property?
This property features: MU‑5A zoned mixed‑use property with redevelopment potential for approximately 9 apartment units as a matter‑of‑right; Approximately 5,771 SF planned boutique multifamily/condominium development opportunity; Year built: 1903
