Mixed-Use Property with Redevelopment
For Sale
$950,000
2202 MARTIN LUTHER KING JR AVENUE SE, Washington, DC 20020
Two established tenants occupy an income-producing building within the Anacostia Historic District.
Property Size2,250 SF
Lot Size0.05 Acres
Price / SF$431.82
Days on Market107
Property Features for 2202 MARTIN LUTHER KING JR AVENUE SE
General Information
Standard status
Active
Size
2,250 SF
Lot size
0.05 Acres
Property subtype
MixedUse
Zoning
MU-7B
Financials
Gross Income
$71,050
Opportunity Zone
Yes
Taxes and HOA fees
Annual Taxes
$9,216
Building Details
Building Size
2,250 SF
Year Built
1909
Year Renovated
2012
Tenancy
Multi
Listing Agency:
Demers Real Estate, Inc.
(202) 232-0950
Listed By:
Jon L Wilson · License #BR98368578
(202) 232-0950
Source:
Barnesrealestatecompany
Added: Apr 27
Changed: Aug 10
Last Checked: Aug 11 at 1:05PM
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 Demers Real Estate, Inc.
Investment Insights
Based on property information with market context.
This mixed-use property includes an approximately 2,200-square-foot building on a 2,360-square-foot lot. Constructed in 1909 and renovated in 2012, the asset is currently occupied by two established tenants. Its MU-7B zoning allows a 65-foot height limit and supports approximately 7,080 square feet by right under a 3.0 FAR, with potential for approximately 9,912 square feet through the Inclusionary Zoning bonus at a 4.2 FAR.
The property is positioned along Martin Luther King Jr. Avenue SE, a major arterial with reported traffic counts exceeding 18,400 and a Walk Score of 75. It is located within the Anacostia Historic District and an Opportunity Zone, with St. Elizabeths East and Skyland Town Center identified among the nearby major developments.
The property is positioned along Martin Luther King Jr. Avenue SE, a major arterial with reported traffic counts exceeding 18,400 and a Walk Score of 75. It is located within the Anacostia Historic District and an Opportunity Zone, with St. Elizabeths East and Skyland Town Center identified among the nearby major developments.
Key Highlights
- Approximately 2,200 SF building on a 2,360 SF lot
- Built in 1909; renovated in 2012
- Two established tenants currently occupy the property
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
$34,927
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
3.68%
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%
$698,540
$698.5K
Cap Rate 7%
$498,957
$499.0K
Cap Rate 9%
$388,078
$388.1K
Market Conditions
NOI Build-Up for 2,200 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
$52.8K $24.00/SF
− Vacancy
−$2.9K −$1.32/SF
EGI
$49.9K $22.68/SF
− OpEx
−$15.0K −$6.80/SF
NOI
$34.9K $15.88/SF
Area
ZIP 20020
Vacancy
5.50%
Lease Rate
$24.00 /SF/Yr
Expense Ratio
30.00%
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%
$698,540
Cap Rate 7%
$498,957
Cap Rate 9%
$388,078
Alternative Uses
Best Use
Retail
$499.0K
$436.6K – $582.1K
NOI $34,927 @ 7.0% cap · market cap 3.68%
Second Best
Mixed Use
$424.3K
$371.3K – $495.0K
NOI $29,700 @ 7.0% cap · market cap 3.13%
Theoretical Best
Office A
$1.14M
$993.9K – $1.33M
NOI $79,510 @ 7.0% cap · market cap 8.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,089
Businesses Nearby
6k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Dining 71%
Shops & Services 29%
Starbucks
Dining
4,578 visits/mo
0.1 miles
Truist
Shops & Services
1,899 visits/mo
0.3 miles
Demographics for 20020, DC
51,616
Population
26,376
Households
2
Avg Household Size
34
Median Age
28%
College-Educated
89%
High-School Grad
4.6 sq mi
ZIP Area
11,221
Density / Sq Mi
$53,015
Median Household Income
$48,752
Median Earnings
$1,317
Median Rent
$442,500
Median Home Value
Market
Vacancy Rate% for Retail in Washington, DC
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two established tenants occupy an income-producing building within the Anacostia Historic District.
Where is this mixed-use property located?
The property is located at 2202 MARTIN LUTHER KING JR AVENUE SE Washington, DC.
What is the asking price?
The asking price for this property is $950,000.
What are key features of this property?
This property features: Approximately 2,200 SF building on a 2,360 SF lot; Built in 1909; renovated in 2012; Two established tenants currently occupy the property
