Fully Rented 5-Unit
For Sale
$525,000
16 S MULBERRY St, Hagerstown, MD 21740
Turnkey investment property with value-add potential in Hagerstown, MD.
Property Size4,316 SF
Lot Size0.17 Acres
Days on Market164
Property Features for 16 S MULBERRY St
General Information
Standard status
Active
Size
4,316 SF
Lot size
0.17 Acres
Property subtype
Investment
Taxes and HOA fees
Annual Taxes
$5,072
Building Details
Building Size
4,316 SF
Year Built
1914
Units
4
Listing Agency:
RG Realty, Inc.
(301) 991-0207
Listed By:
Roberto G. Gonzalez · License #598229
(301) 991-0207
Source:
Elliman
Added: Mar 11
Changed: Aug 10
Last Checked: Aug 20 at 10:50AM
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 well-maintained 5-unit property is a turnkey investment, fully rented with reliable long-term tenants. The building features four 1-bedroom units and one 2-bedroom unit with an additional office/den. Off-street parking is available at the rear of the property. Unit 16 (First Floor) includes a living room, dining room, kitchen, bedroom, and bathroom. Unit 16 (Second Floor) features a living room, dining room, kitchen, bedroom, bathroom, and office/den. Unit 16 ½ has a main level with a living room and kitchen, and a second level with a bedroom and bathroom. Unit 18 (First Floor) contains a living room, kitchen, bedroom, and bathroom. Unit 18 (Second Floor), currently rented, also includes a living room, kitchen, bedroom, and bathroom. This property offers excellent value-add potential through rent increases to market rates, as current rents are significantly below market. With strong occupancy, room to grow income, and minimal upkeep needed, this is a great opportunity for both new and seasoned investors.
Key Highlights
- Fully rented 5‑unit turnkey building providing immediate income.
- Significant value‑add potential through rent increases to market rates.
- Well‑maintained property requiring minimal upkeep.
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
$40,619
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
7.74%
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%
$812,380
$812.4K
Cap Rate 7%
$580,271
$580.3K
Cap Rate 9%
$451,322
$451.3K
Market Conditions
NOI Build-Up for 4,316 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
$79.2K $18.36/SF
− Vacancy
−$5.4K −$1.25/SF
EGI
$73.9K $17.11/SF
− OpEx
−$33.2K −$7.70/SF
NOI
$40.6K $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%
$812,380
Cap Rate 7%
$580,271
Cap Rate 9%
$451,322
Alternative Uses
Best Use
Apartment 5plus
$580.3K
$507.7K – $677.0K
NOI $40,619 @ 7.0% cap · market cap 7.74%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$957.4K
$837.7K – $1.12M
NOI $67,017 @ 7.0% cap · market cap 12.77%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,052
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 - Turnkey investment property with value-add potential in Hagerstown, MD.
Where is this apartment building located?
The property is located at 16 S MULBERRY St Hagerstown, MD.
What is the asking price?
The asking price for this property is $525,000.
What are key features of this property?
This property features: Fully rented 5‑unit turnkey building providing immediate income.; Significant value‑add potential through rent increases to market rates.; Well‑maintained property requiring minimal upkeep.
