Mixed-Use Building with Street
For Sale
Contact for pricing
2703 12th Street Northeast, Washington, DC 20018
Street-level retail under a long-term NNN lease with two renovated residential units above.
Property Size2,406 SF
Price / SF$319.20
Days on Market113
Property Features for 2703 12th Street Northeast
General Information
Standard status
Active
Size
2,406 SF
Property subtype
Retail, Multifamily
Additional Details
Multifamily Units
2
Building Details
Year Built
1927
Year Renovated
2021
Listing Agency:
Marcus & Millichap - Washington, D.C.
(202) 536-3742
Listed By:
Krystin Gambrell · License #SP40004522
Source:
Crexi
Added: May 4
Changed: Jul 22
Last Checked: Aug 24 at 5:57AM
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 Marcus & Millichap - Washington, D.C.
Investment Insights
Based on property information with market context.
This mixed-use building offers street-level retail and two residential units on the second and third levels. The commercial space is currently occupied under a long-term NNN lease, and the two apartments include one-bedroom and two-bedroom layouts. Each unit and the retail space were renovated in 2021.
The property also features new HVAC units and an updated roof. It is positioned just steps from the commercial corridor along Rhode Island Avenue NE and is minutes from the Brookland-CUA Metro Station.
At 2,406 square feet, the configuration supports an in-place income stream from the stabilized retail tenant while providing residential lease-up flexibility through the available apartment unit.
The property also features new HVAC units and an updated roof. It is positioned just steps from the commercial corridor along Rhode Island Avenue NE and is minutes from the Brookland-CUA Metro Station.
At 2,406 square feet, the configuration supports an in-place income stream from the stabilized retail tenant while providing residential lease-up flexibility through the available apartment unit.
Key Highlights
- 2,406 SF mixed‑use building with street‑level retail plus two residential units (1BR and 2BR)
- Street‑level retail is occupied by a long‑term NNN lease tenant
- Residential units and commercial space renovated in 2021
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
$43,109
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
5.61%
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%
$862,180
$862.2K
Cap Rate 7%
$615,843
$615.8K
Cap Rate 9%
$478,989
$479.0K
Market Conditions
NOI Build-Up for 2,406 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
$65.0K $27.00/SF
− Vacancy
−$3.4K −$1.40/SF
EGI
$61.6K $25.60/SF
− OpEx
−$18.5K −$7.68/SF
NOI
$43.1K $17.92/SF
Area
Washington, DC
Vacancy
5.20%
Lease Rate
$27.00 /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%
$862,180
Cap Rate 7%
$615,843
Cap Rate 9%
$478,989
Alternative Uses
Best Use
Multifamily LT 5
$615.8K
$538.9K – $718.5K
NOI $43,109 @ 7.0% cap · market cap 5.61%
Second Best
Apartment 5plus
$571.1K
$499.7K – $666.3K
NOI $39,977 @ 7.0% cap · market cap 5.21%
Theoretical Best
Office A
$1.24M
$1.08M – $1.44M
NOI $86,630 @ 7.0% cap · market cap 11.28%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Location Intelligence
Trade Area within ½ mile
1,706
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 Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Duplex - Street-level retail under a long-term NNN lease with two renovated residential units above.
Where is this duplex located?
The property is located at 2703 12th Street Northeast Washington, DC.
What is the asking price?
The asking price for this property is $768,000.
What are key features of this property?
This property features: 2,406 SF mixed‑use building with street‑level retail plus two residential units (1BR and 2BR); Street‑level retail is occupied by a long‑term NNN lease tenant; Residential units and commercial space renovated in 2021
