Brick 10-Unit Mixed-Use
For Sale
$1,400,000
154-158S Potomac, Hagerstown, MD 21740
All-brick four-story building with 9 residential units and 1 commercial unit, each separately metered for electric.
Property Size12,736 SF
Lot Size0.22 Acres
Price / SF$109.92
Days on Market116
Property Features for 154-158S Potomac
General Information
Standard status
Active
Size
12,736 SF
Lot size
0.22 Acres
Property subtype
Commercial
Zoning
CC-MU
Occupancy
100%
Lease Term
[]
Additional Details
Multifamily Units
9
Building Details
Year Built
1900
Stories
4
Tenancy
Multi
Listing Agency:
RG Realty,Inc.
Listed By:
Roberto G. Gonzalez · License #598229
(240) 203-6393
Source:
Deepcreeklake
Added: May 13
Changed: Sep 4
Last Checked: Sep 4 at 10:08AM
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 RG Realty,Inc.
Investment Insights
Based on property information with market context.
This is a four-story, all-brick 10-unit apartment building with a freestanding 3-bay garage on site. The property includes a mix of nine residential units and one commercial unit, with separate electric metering for all units. Unit mix consists of five three-bedroom units and three one-bedroom units, plus one two-bedroom unit. A detached 3-bay garage provides additional space that may be used for value-added income or storage, depending on the tenant and operating plan.
The property is located in Hagerstown’s arts and entertainment district on a 0.22-acre parcel. It is described as being just blocks from a multi-use sports and events facility, the University of Maryland Hagerstown campus, and the Washington County Library.
Zoning is listed as CC-MU (City Center - Mixed Use), supporting long-term flexibility for ownership and operating strategy. The building is fully leased, providing current occupancy across the 10 units and the on-site commercial space.
The property is located in Hagerstown’s arts and entertainment district on a 0.22-acre parcel. It is described as being just blocks from a multi-use sports and events facility, the University of Maryland Hagerstown campus, and the Washington County Library.
Zoning is listed as CC-MU (City Center - Mixed Use), supporting long-term flexibility for ownership and operating strategy. The building is fully leased, providing current occupancy across the 10 units and the on-site commercial space.
Key Highlights
- All‑brick four‑story 10‑unit building (9 residential, 1 commercial) plus a freestanding 3‑bay garage
- Unit mix: 5 units 3BR/1BA, 3 units 1BR/1BA, 1 unit 2BR/1BA, and 1 commercial unit
- Each unit has separate electric meters
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
$119,863
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
8.56%
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%
$2,397,260
$2.4M
Cap Rate 7%
$1,712,329
$1.7M
Cap Rate 9%
$1,331,811
$1.3M
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
$233.8K $18.36/SF
− Vacancy
−$15.9K −$1.25/SF
EGI
$217.9K $17.11/SF
− OpEx
−$98.1K −$7.70/SF
NOI
$119.9K $9.41/SF
Area
Washington County, MD
Vacancy
6.80%
Lease Rate
$18.36 /SF/Yr
Expense Ratio
45.00%
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%
$2,397,260
Cap Rate 7%
$1,712,329
Cap Rate 9%
$1,331,811
Alternative Uses
Best Use
Apartment 5plus
$1.71M
$1.50M – $2.00M
NOI $119,863 @ 7.0% cap · market cap 8.56%
Second Best
—
—
no second resolved use
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
Multi-tenant
Tenancy
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 - All-brick four-story building with 9 residential units and 1 commercial unit, each separately metered for electric.
Where is this apartment building located?
The property is located at 154-158S 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: All‑brick four‑story 10‑unit building (9 residential, 1 commercial) plus a freestanding 3‑bay garage; Unit mix: 5 units 3BR/1BA, 3 units 1BR/1BA, 1 unit 2BR/1BA, and 1 commercial unit; Each unit has separate electric meters
