Four-Story Apartment Building with
For Sale
$1,400,000
154 154-158 Potomac, Hagerstown, MD 21740
Fully leased mixed-use property with individually metered units, a detached garage, and CC-MU zoning in downtown Hagerstown.
Property Size12,736 SF
Lot Size0.22 Acres
Price / SF$109.92
Days on Market30
Property Features for 154 154-158 Potomac
General Information
Standard status
Active
Size
12,736 SF
Total Parking Spaces
3
Lot size
0.22 Acres
Zoning
CC-MU
Occupancy
100%
Units
Unit Mix
5 x 3BR/1BA, 3 x 1BR/1BA, 1 x 2BR/1BA
Multifamily Units
9
Building Details
Year Built
1900
Stories
4
Construction
brick
Listing Agency:
RG Realty, Inc.
(240) 203-6393
Listed By:
Roberto G. Gonzalez · License #598229
Source:
Kableteam
Added: Jul 31
Changed: Aug 29
Last Checked: Aug 26 at 9:46AM
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 RG Realty, Inc.
Investment Insights
Based on property information with market context.
This four-story, all-brick apartment building contains 12,736 square feet of gross building area on a 0.22-acre parcel. The property includes 10 units: nine residential apartments and one commercial unit. The residential mix consists of five three-bedroom, one-bath units, three one-bedroom, one-bath units, and one two-bedroom, one-bath unit. Each unit has a separate electric meter. A freestanding three-bay garage is also located on the site.
Built in 1900, the property is fully leased and situated at 154-158 Potomac in Hagerstown’s Arts and Entertainment District. It is zoned CC-MU, or City Center – Mixed Use, and lies within Hagerstown’s revitalization zone. The location is described as being a short distance from the University of Maryland Hagerstown campus, Washington County Library, and a new multi-use sports and events facility.
Built in 1900, the property is fully leased and situated at 154-158 Potomac in Hagerstown’s Arts and Entertainment District. It is zoned CC-MU, or City Center – Mixed Use, and lies within Hagerstown’s revitalization zone. The location is described as being a short distance from the University of Maryland Hagerstown campus, Washington County Library, and a new multi-use sports and events facility.
Key Highlights
- 10‑unit building with 9 residential units and 1 commercial unit
- 12,736 square feet of gross building area on a 0.22‑acre parcel
- Five 3‑bedroom units, three 1‑bedroom units, and one 2‑bedroom unit
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
$126,086
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
9.01%
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%
$2,521,720
$2.5M
Cap Rate 7%
$1,801,229
$1.8M
Cap Rate 9%
$1,400,956
$1.4M
Market Conditions
NOI Build-Up for 12,736 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
$229.2K $18.00/SF
− Vacancy
−$27.5K −$2.16/SF
EGI
$201.7K $15.84/SF
− OpEx
−$75.7K −$5.94/SF
NOI
$126.1K $9.90/SF
Area
Washington County, MD
Vacancy
12.00%
Lease Rate
$18.00 /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%
$2,521,720
Cap Rate 7%
$1,801,229
Cap Rate 9%
$1,400,956
Alternative Uses
Best Use
Mixed Use
$1.80M
$1.58M – $2.10M
NOI $126,086 @ 7.0% cap · market cap 9.01%
Second Best
Apartment 5plus
$1.71M
$1.50M – $2.00M
NOI $119,863 @ 7.0% cap · market cap 8.56%
Theoretical Best
Office A
$2.83M
$2.47M – $3.30M
NOI $197,758 @ 7.0% cap · market cap 14.13%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
9
Residential units
100%
Occupancy
Location Intelligence
Trade Area within ½ mile
2,029
Businesses Nearby
Explore this area
Business Placement
Demographics for 21740, MD
65,619
Population
27,002
Households
2.4
Avg Household Size
39
Median Age
20%
College-Educated
86%
High-School Grad
70.9 sq mi
ZIP Area
926
Density / Sq Mi
$59,410
Median Household Income
$42,159
Median Earnings
$1,031
Median Rent
$241,600
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Apartment building - Fully leased mixed-use property with individually metered units, a detached garage, and CC-MU zoning in downtown Hagerstown.
Where is this apartment building located?
The property is located at 154 154-158 Potomac Hagerstown, MD.
What is the asking price?
The asking price for this property is $1,400,000.
What are key features of this property?
This property features: 10‑unit building with 9 residential units and 1 commercial unit; 12,736 square feet of gross building area on a 0.22‑acre parcel; Five 3‑bedroom units, three 1‑bedroom units, and one 2‑bedroom unit
