Multifamily Property in Bankruptcy
For Sale
Contact for pricing
Pending
245 8th Street Northeast, Washington, DC 20002
Court-approved Chapter 11 sale for 245–249 8th Street NE, with physical vacancy and rent control exemption.
Property Size8,016 SF
Days on Market102
Property Features for 245 8th Street Northeast
General Information
Standard status
Pending
Size
8,016 SF
Total Parking Spaces
4
Property subtype
Multifamily
Zoning
RF-1
Building Details
Year Built
1987
Buildings
1
Stories
3
Units
11
Listing Agency:
Horvath & Tremblay Bethesda
(781) 776-4000
Listed By:
Christian Barreiro · License #DC: SP98373426
Source:
Crexi
Added: May 22
Changed: Aug 15
Last Checked: Aug 14 at 8:48AM
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 Horvath & Tremblay Bethesda
Investment Insights
Based on property information with market context.
Horvath & Tremblay is offering 245–249 8th Street NE as a multifamily investment in connection with a Chapter 11 bankruptcy proceeding. The transaction is court-supervised and subject to Bankruptcy Court approval, with the sale expected to be completed free and clear of liens, claims, and encumbrances under Section 363 of the Bankruptcy Code, subject to approval. The offering is marketed as a transparent, structured process for qualified bidders.
Located in the heart of Capitol Hill, the property is positioned about eight blocks east of the United States Capitol. The asset is being offered with significant physical vacancy, and the remarks indicate an exemption from Washington, DC rent control. Property size is listed as 8,016 square feet.
Located in the heart of Capitol Hill, the property is positioned about eight blocks east of the United States Capitol. The asset is being offered with significant physical vacancy, and the remarks indicate an exemption from Washington, DC rent control. Property size is listed as 8,016 square feet.
Key Highlights
- Multifamily property built in 1987 at 245–249 8th Street NE (Capitol Hill).
- Court‑approved sale process under Chapter 11 bankruptcy proceedings (subject to Bankruptcy Court approval).
- Expected to be completed free and clear of liens, claims, and encumbrances under Section 363 of the Bankruptcy Code (subject to court approval).
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
$136,470
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
4.71%
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%
$2,729,400
$2.7M
Cap Rate 7%
$1,949,571
$1.9M
Cap Rate 9%
$1,516,333
$1.5M
Market Conditions
NOI Build-Up for 8,016 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
$264.5K $33.00/SF
− Vacancy
−$16.4K −$2.05/SF
EGI
$248.1K $30.95/SF
− OpEx
−$111.7K −$13.93/SF
NOI
$136.5K $17.02/SF
Area
ZIP 20002
Vacancy
6.20%
Lease Rate
$33.00 /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%
$2,729,400
Cap Rate 7%
$1,949,571
Cap Rate 9%
$1,516,333
Alternative Uses
Best Use
Apartment 5plus
$1.95M
$1.71M – $2.27M
NOI $136,470 @ 7.0% cap · market cap 4.71%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.14M
$3.62M – $4.83M
NOI $289,707 @ 7.0% cap · market cap 9.99%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
4,826
Businesses Nearby
Explore this area
Business Placement
Demographics for 20002, DC
69,422
Population
38,459
Households
1.8
Avg Household Size
33
Median Age
70%
College-Educated
95%
High-School Grad
5.1 sq mi
ZIP Area
13,612
Density / Sq Mi
$114,482
Median Household Income
$82,909
Median Earnings
$2,140
Median Rent
$813,700
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 - Court-approved Chapter 11 sale for 245–249 8th Street NE, with physical vacancy and rent control exemption.
Where is this apartment building located?
The property is located at 245 8th Street Northeast Washington, DC.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: Multifamily property built in 1987 at 245–249 8th Street NE (Capitol Hill).; Court‑approved sale process under Chapter 11 bankruptcy proceedings (subject to Bankruptcy Court approval).; Expected to be completed free and clear of liens, claims, and encumbrances under Section 363 of the Bankruptcy Code (subject to court approval).
