Magnificent Georgian Revival
For Sale
$12,500,000
2040 S St NW, Washington, DC 20009
Rare opportunity: grand residence or commercial mixed-use in Washington, D.C.
Property Size17,010 SF
Lot Size0.14 Acres
Days on Market267
Property Features for 2040 S St NW
General Information
Standard status
Active
Size
17,010 SF
Lot size
0.14 Acres
Property subtype
Other
Taxes and HOA fees
Annual Taxes
$162,915
Building Details
Building Size
17,010 SF
Year Built
1905
Listing Agency:
TTR Sotheby's International Realty
(202) 271-3344
Listed By:
Michael W Rankin · License #33981
(202) 271-3344
Source:
Elliman
Added: Nov 28, 2025
Changed: Aug 21
Last Checked: Aug 22 at 10:51AM
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 TTR Sotheby's International Realty
Investment Insights
Based on property information with market context.
This is a rare opportunity to own one of Washington's magnificent Georgian revival mansions. Known as Jewett House, it was built within close proximity to other stately residences in Kalorama and Embassy Row. The generously scaled rooms are stunning with high ceilings, detailed moldings, and oversized windows. The elegant three-story residence was constructed with detailed brick and limestone and an impressive clay tile roof. Previously used as a grand residence for sophisticated entertaining, the building is configured with offices, conference rooms, and a substantial boardroom. The mixed-use zoning could allow for numerous residential and commercial uses such as a residence and family office, a Think Tank with housing for guests or patrons, or a diplomatic residence with offices. The main entrance is located at 2040 S Street. The annex and commercial entrances are at 1742 Connecticut Ave and 1737 21st Street. This opportunity is rarely available in Washington, D.C.
Key Highlights
- Rare opportunity to own the magnificent Georgian revival Jewett House in a prime location near Kalorama and Embassy Row.
- Mixed‑use zoning allows for numerous residential and commercial possibilities.
- Generously scaled rooms with high ceilings and detailed moldings.
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
$483,519
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
3.87%
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%
$9,670,380
$9.7M
Cap Rate 7%
$6,907,414
$6.9M
Cap Rate 9%
$5,372,433
$5.4M
Market Conditions
NOI Build-Up for 17,010 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
$767.5K $45.12/SF
− Vacancy
−$122.8K −$7.22/SF
EGI
$644.7K $37.90/SF
− OpEx
−$161.2K −$9.48/SF
NOI
$483.5K $28.43/SF
Area
ZIP 20009
Vacancy
16.00%
Lease Rate
$45.12 /SF/Yr
Expense Ratio
25.00%
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%
$9,670,380
Cap Rate 7%
$6,907,414
Cap Rate 9%
$5,372,433
Alternative Uses
Best Use
Office B
$6.91M
$6.04M – $8.06M
NOI $483,519 @ 7.0% cap · market cap 3.87%
Second Best
Mixed Use
$4.91M
$4.29M – $5.72M
NOI $343,463 @ 7.0% cap · market cap 2.75%
Theoretical Best
Office A
$8.75M
$7.66M – $10.21M
NOI $612,458 @ 7.0% cap · market cap 4.90%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
6,041
Businesses Nearby
Explore this area
Business Placement
Demographics for 20009, DC
53,357
Population
31,824
Households
1.7
Avg Household Size
34
Median Age
84%
College-Educated
97%
High-School Grad
1.3 sq mi
ZIP Area
41,044
Density / Sq Mi
$140,555
Median Household Income
$99,606
Median Earnings
$2,346
Median Rent
$727,800
Median Home Value
Market
Vacancy Rate% for Office in Washington, DC
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Office building - Rare opportunity: grand residence or commercial mixed-use in Washington, D.C.
Where is this office building located?
The property is located at 2040 S St NW Washington, DC.
What is the asking price?
The asking price for this property is $12,500,000.
What are key features of this property?
This property features: Rare opportunity to own the magnificent Georgian revival Jewett House in a prime location near Kalorama and Embassy Row.; Mixed‑use zoning allows for numerous residential and commercial possibilities.; Generously scaled rooms with high ceilings and detailed moldings.
