Residential Income Property with Rooftop
New
For Sale
$489,900
1940 3RD STREET NE Unit 6, Washington, DC 20002
Two-bedroom condominium residence with an open layout, upgraded finishes, and shared outdoor space.
Property Size1,040 SF
Days on Market5
Property Features for 1940 3RD STREET NE Unit 6
General Information
Standard status
Active
Size
1,040 SF
Property subtype
Unit/Flat/Apartment
Units
Unit Mix
1 x 2BR/2BA
Multifamily Units
1
Additional Details
Public Transit
Yes
Taxes and HOA fees
Annual Taxes
$4,338
Amenities
shared rooftop terrace
in-unit washer/dryer
Building Details
Building Size
1,040 SF
Year Built
1940
Listing Agency:
Serhant
Listed By:
Barak Sky · License #SP600552
(301) 742-5759
Source:
Kwcapitalproperties
Added: Sep 10
Changed: Sep 13
Last Checked: Sep 14 at 9:15AM
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 Serhant
Investment Insights
Based on property information with market context.
This condominium residence offers two bedrooms and two bathrooms within an open, light-filled layout. Oversized windows, warm wood flooring, and an in-unit washer and dryer add everyday functionality. The kitchen includes LG stainless steel appliances, granite countertops, and extensive cabinetry, while both bathrooms feature Porcelanosa tile and contemporary designer finishes. Residents also have access to a shared rooftop terrace with city views.
The property is positioned near Eckington Yards, Quincy Lane Promenade, Union Market, Eckington Park, and the Metropolitan Branch Trail. Dining, entertainment, retail, and neighborhood amenities include Union Kitchen, Brooklyn Boulders, Trader Joe's, a local Farmers Market, and the Alamo Drafthouse. NoMa-Gallaudet U and Rhode Island Avenue Metro stations are also nearby. The building dates to 1940.
The property is positioned near Eckington Yards, Quincy Lane Promenade, Union Market, Eckington Park, and the Metropolitan Branch Trail. Dining, entertainment, retail, and neighborhood amenities include Union Kitchen, Brooklyn Boulders, Trader Joe's, a local Farmers Market, and the Alamo Drafthouse. NoMa-Gallaudet U and Rhode Island Avenue Metro stations are also nearby. The building dates to 1940.
Key Highlights
- Two‑bedroom, two‑bath condominium residence
- Shared rooftop terrace with city views
- Open layout with oversized windows and wood flooring
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
$17,706
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
3.61%
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%
$354,120
$354.1K
Cap Rate 7%
$252,943
$252.9K
Cap Rate 9%
$196,733
$196.7K
Market Conditions
NOI Build-Up for 1,040 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
$34.3K $33.00/SF
− Vacancy
−$2.1K −$2.05/SF
EGI
$32.2K $30.95/SF
− OpEx
−$14.5K −$13.93/SF
NOI
$17.7K $17.02/SF
Area
ZIP 20002
Vacancy
6.20%
Lease Rate
$33.00 /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%
$354,120
Cap Rate 7%
$252,943
Cap Rate 9%
$196,733
Alternative Uses
Best Use
Apartment 5plus
$252.9K
$221.3K – $295.1K
NOI $17,706 @ 7.0% cap · market cap 3.61%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$537.0K
$469.8K – $626.5K
NOI $37,587 @ 7.0% cap · market cap 7.67%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
1,887
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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Frequently Asked Questions
What type of property is this?
Residential income property - Two-bedroom condominium residence with an open layout, upgraded finishes, and shared outdoor space.
Where is this residential income property located?
The property is located at 1940 3RD STREET NE Unit 6 Washington, DC.
What is the asking price?
The asking price for this property is $489,900.
What are key features of this property?
This property features: Two‑bedroom, two‑bath condominium residence; Shared rooftop terrace with city views; Open layout with oversized windows and wood flooring
