Downtown Multifamily Investment
For Sale
Contact for pricing
Pending
220-226 Summit Ave, Hagerstown, MD 21740
Two adjoining apartment buildings with 20 units in downtown Hagerstown.
Property Size7,080 SF
Days on Market179
Property Features for 220-226 Summit Ave
General Information
Standard status
Pending
Size
7,080 SF
Class
C
Property subtype
Multifamily
Zoning
RMED
Occupancy
100%
Investment Type
Value Add
Net Operating Income
$179,746
Building Details
Year Built
1903
Year Renovated
2023
Buildings
2
Stories
3
Units
20
Tenancy
Multi
Listing Agency:
RG Realty Inc
(240) 203-6393
Listed By:
Roberto Gonzalez · License #MD 598229
Source:
Crexi
Added: Feb 23
Changed: Aug 12
Last Checked: Aug 20 at 2:39PM
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 multifamily assemblage consists of two adjoining apartment buildings at 220–222 and 224–226 Summit Avenue in downtown Hagerstown. Together, the properties form a cohesive residential complex with a total of twenty units, plus a detached three bay garage structure at the rear. The buildings are improved with a mix of one bedroom one bath apartments and studio units, offering a desirable unit mix for the downtown rental market. The improvements include two and three story brick and masonry structures situated on a combined urban parcel with frontage along Summit Avenue and Hood Street. The 220–222 Summit Avenue building contains eight apartment units, consisting primarily of one bedroom layouts along with studio apartments, and is complemented by a separate garage building providing additional rental income. The adjoining 224–226 Summit Avenue building contains twelve studio apartment units, allowing for operational efficiency and scale across the combined properties. Both buildings have undergone substantial capital improvements in recent years, including basement waterproofing with commercial grade dehumidification, plumbing and electrical upgrades, replacement and repair of fire escapes, new flooring, updated paint throughout, and the installation of new PTAC heating and cooling units in the apartments. Constructed in the early 1900s, the building reflects durable construction typical of the area. Ownership has completed recent capital improvements, including new PTAC units, plumbing upgrades, updated water service, remodeled unit interiors, and common-area enhancements. The properties are zoned Residential Medium Density under City of Hagerstown zoning, a designation that supports multifamily use and aligns with the existing improvements. Located within the downtown City Center area, the properties benefit from proximity to employment, education, public transportation, and ongoing revitalization initiatives throughout downtown Hagerstown. The property size is 7080 square feet.
Key Highlights
- Twenty total units plus a detached three‑bay garage, offering substantial rental income potential.
- Recent substantial capital improvements, including new PTAC units, plumbing and electrical upgrades, basement waterproofing, and remodeled interiors, reducing near‑term capital expenditure needs.
- Located in downtown Hagerstown, providing proximity to employment, education, public transportation, and revitalization initiatives.
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
$66,632
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
3.37%
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%
$1,332,640
$1.3M
Cap Rate 7%
$951,886
$951.9K
Cap Rate 9%
$740,356
$740.4K
Market Conditions
NOI Build-Up for 7,080 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
$130.0K $18.36/SF
− Vacancy
−$8.8K −$1.25/SF
EGI
$121.1K $17.11/SF
− OpEx
−$54.5K −$7.70/SF
NOI
$66.6K $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%
$1,332,640
Cap Rate 7%
$951,886
Cap Rate 9%
$740,356
Alternative Uses
Best Use
Apartment 5plus
$951.9K
$832.9K – $1.11M
NOI $66,632 @ 7.0% cap · market cap 3.37%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.57M
$1.37M – $1.83M
NOI $109,935 @ 7.0% cap · market cap 5.57%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,760
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 - Two adjoining apartment buildings with 20 units in downtown Hagerstown.
Where is this apartment building located?
The property is located at 220-226 Summit Ave Hagerstown, MD.
What is the asking price?
The asking price for this property is $1,975,000.
What are key features of this property?
This property features: Twenty total units plus a detached three‑bay garage, offering substantial rental income potential.; Recent substantial capital improvements, including new PTAC units, plumbing and electrical upgrades, basement waterproofing, and remodeled interiors, reducing near‑term capital expenditure needs.; Located in downtown Hagerstown, providing proximity to employment, education, public transportation, and revitalization initiatives.
