Brick Duplex with Commercial Lower
For Sale
$275,000
228 E Washington St, Hagerstown, MD 21740
Over-under configuration combines a commercial-ready lower unit with an updated three-bedroom residence above.
Property Size2,048 SF
Price / SF$134.28
Days on Market187
Property Features for 228 E Washington St
General Information
Standard status
Active
Size
2,048 SF
Property subtype
Multi-Family
Building Details
Year Built
1895
Listing Agency:
RG Realty, Inc.
(240) 203-6393
Listed By:
Roberto G. Gonzalez · License #598229
Source:
Baltimoreharfordhomesforsale
Added: Feb 25
Changed: Aug 30
Last Checked: Aug 30 at 5:49PM
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 2,048-square-foot over-under duplex at 228 E Washington St includes a commercial lower level and a residential upper unit. The lower space has a kitchen and full bathroom, while the upper residence provides three bedrooms, one bathroom, remodeled bathroom finishes, and updated flooring. A privacy-fenced yard serves the property, which was built in 1895.
Major capital improvements include a roof replacement completed in 2019, a heat pump installed in June 2025, and a new hot water heater added in 2025. The commercial designation makes FHA financing ineligible. Conversion of the lower level to residential use may be possible subject to approvals, offering an additional configuration option for an owner occupant or investor.
Major capital improvements include a roof replacement completed in 2019, a heat pump installed in June 2025, and a new hot water heater added in 2025. The commercial designation makes FHA financing ineligible. Conversion of the lower level to residential use may be possible subject to approvals, offering an additional configuration option for an owner occupant or investor.
Key Highlights
- 2,048‑square‑foot over‑under duplex at 228 E Washington St
- Lower level designated for commercial use with kitchen and full bathroom
- Upper unit includes 3 bedrooms and 1 bathroom
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
$24,606
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
8.95%
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%
$492,120
$492.1K
Cap Rate 7%
$351,514
$351.5K
Cap Rate 9%
$273,400
$273.4K
Market Conditions
NOI Build-Up for 2,048 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
$40.3K $19.68/SF
− Vacancy
−$7.5K −$3.66/SF
EGI
$32.8K $16.02/SF
− OpEx
−$8.2K −$4.00/SF
NOI
$24.6K $12.01/SF
Area
Washington County, MD
Vacancy
18.60%
Lease Rate
$19.68 /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%
$492,120
Cap Rate 7%
$351,514
Cap Rate 9%
$273,400
Alternative Uses
Best Use
Office B
$351.5K
$307.6K – $410.1K
NOI $24,606 @ 7.0% cap · market cap 8.95%
Second Best
Multifamily LT 5
$306.9K
$268.5K – $358.0K
NOI $21,482 @ 7.0% cap · market cap 7.81%
Theoretical Best
Office A
$454.3K
$397.5K – $530.0K
NOI $31,800 @ 7.0% cap · market cap 11.56%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
2,000
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 Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Over-under configuration combines a commercial-ready lower unit with an updated three-bedroom residence above.
Where is this duplex located?
The property is located at 228 E Washington St Hagerstown, MD.
What is the asking price?
The asking price for this property is $275,000.
What are key features of this property?
This property features: 2,048‑square‑foot over‑under duplex at 228 E Washington St; Lower level designated for commercial use with kitchen and full bathroom; Upper unit includes 3 bedrooms and 1 bathroom
