Renovated Mixed-Use Retail and
For Sale
Contact for pricing
Pending
2316 Rhode Island Ave NE, Washington, DC 20018
Renovated MU-4 mixed-use building on a heavily trafficked Route 1 corridor with rear curb cut for potential on-site parking.
Property Size2,470 SF
Days on Market225
Property Features for 2316 Rhode Island Ave NE
General Information
Standard status
Pending
Size
2,470 SF
Property subtype
Office, Retail
Zoning
MU-4
Additional Details
Traffic Count
21,860 vehicles/day
Building Details
Year Built
1912
Year Renovated
2016
Buildings
1
Stories
3
Listing Agency:
Feldman Ruel
Listed By:
Ian Ruel · License #DC BR200201389
Source:
Crexi
Added: Jan 23
Changed: Aug 8
Last Checked: Jul 24 at 9:12AM
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 Feldman Ruel
Investment Insights
Based on property information with market context.
Feldman Ruel offers for sale 2316 Rhode Island Avenue NE, a renovated mixed-use property designed to support a variety of commercial and residential uses under MU-4 zoning. The building underwent a full interior and systems renovation in 2016 and is being delivered vacant at closing, offering the option for immediate occupancy with limited additional improvement expense.
The property is positioned along the Rhode Island Avenue NE corridor (U.S. Route 1), which carries approximately 21,860 vehicles per day. A rear curb cut provides the potential for rear on-site parking.
MU-4 zoning permits a wide range of by-right uses including retail, office, multifamily, and hospitality. MU-4 also allows additional density, with the existing building area potentially expandable to more than twice its current size.
The property is positioned along the Rhode Island Avenue NE corridor (U.S. Route 1), which carries approximately 21,860 vehicles per day. A rear curb cut provides the potential for rear on-site parking.
MU-4 zoning permits a wide range of by-right uses including retail, office, multifamily, and hospitality. MU-4 also allows additional density, with the existing building area potentially expandable to more than twice its current size.
Key Highlights
- Renovated in 2016 with full interior and systems renovation.
- Zoned MU‑4, allowing by‑right uses including retail, office, multifamily, and hospitality.
- MU‑4 zoning allows expansion of the existing building area to more than twice its current size.
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
$40,755
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
5.62%
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%
$815,100
$815.1K
Cap Rate 7%
$582,214
$582.2K
Cap Rate 9%
$452,833
$452.8K
Market Conditions
NOI Build-Up for 2,470 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
$74.1K $30.00/SF
− Vacancy
−$8.9K −$3.60/SF
EGI
$65.2K $26.40/SF
− OpEx
−$24.5K −$9.90/SF
NOI
$40.8K $16.50/SF
Area
Washington, DC
Vacancy
12.00%
Lease Rate
$30.00 /SF/Yr
Expense Ratio
37.50%
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%
$815,100
Cap Rate 7%
$582,214
Cap Rate 9%
$452,833
Alternative Uses
Best Use
Office B
$1.12M
$980.3K – $1.31M
NOI $78,427 @ 7.0% cap · market cap 10.82%
Second Best
Mixed Use
$582.2K
$509.4K – $679.3K
NOI $40,755 @ 7.0% cap · market cap 5.62%
Theoretical Best
Office A
$1.27M
$1.11M – $1.48M
NOI $88,934 @ 7.0% cap · market cap 12.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
21,860 VPD
Traffic count
Location Intelligence
Trade Area within ½ mile
1,022
Businesses Nearby
Explore this area
Business Placement
Demographics for 20018, DC
20,646
Population
9,753
Households
2.1
Avg Household Size
39
Median Age
46%
College-Educated
89%
High-School Grad
3.0 sq mi
ZIP Area
6,882
Density / Sq Mi
$92,569
Median Household Income
$71,947
Median Earnings
$1,245
Median Rent
$672,100
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?
Mixed-use property - Renovated MU-4 mixed-use building on a heavily trafficked Route 1 corridor with rear curb cut for potential on-site parking.
Where is this mixed-use property located?
The property is located at 2316 Rhode Island Ave NE Washington, DC.
What is the asking price?
The asking price for this property is $725,000.
What are key features of this property?
This property features: Renovated in 2016 with full interior and systems renovation.; Zoned MU‑4, allowing by‑right uses including retail, office, multifamily, and hospitality.; MU‑4 zoning allows expansion of the existing building area to more than twice its current size.
