Three-Bedroom Residential Income
For Sale
$799,900
2716 SHERMAN AVENUE NW Unit 3, Washington, DC 20001
Window-lined residence with hardwood floors, treetop views, modern kitchen finishes, and substantial storage.
Property Size1,668 SF
Price / SF$479.56
Days on Market122
Property Features for 2716 SHERMAN AVENUE NW Unit 3
General Information
Standard status
Active
Size
1,668 SF
Property subtype
Unit/Flat/Apartment
Units
Unit Mix
1 x 3BR/2.5BA
Multifamily Units
1
Additional Details
Public Transit
Yes
Building Details
Building Size
1,668 SF
Year Built
1926
Listing Agency:
Compass
(424) 666-9202
Listed By:
Kyra Erika Agarwal · License #Sp200204432
(424) 666-9202
Source:
Kerishull
Added: Apr 24
Changed: Aug 21
Last Checked: Aug 22 at 10:41AM
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 Compass
Investment Insights
Based on property information with market context.
Residence 3 is a three-bedroom residential income property within a five-home collection on Sherman Avenue NW. The interior features wide-plank hardwood flooring, extensive windows, treetop views, and a layout designed for both daily living and entertaining. The kitchen includes LG appliances, shaker cabinetry, and a contemporary finish palette. Storage is a notable feature, with room for flexible guest, work-from-home, or shared-living arrangements.
The property is in Washington, DC’s Columbia Heights neighborhood, near Whole Foods, dining, the 14th Street and U Street corridors, and Columbia Heights Metro. Shaw, Logan Circle, and downtown Washington are also described as accessible from the property.
The property is in Washington, DC’s Columbia Heights neighborhood, near Whole Foods, dining, the 14th Street and U Street corridors, and Columbia Heights Metro. Shaw, Logan Circle, and downtown Washington are also described as accessible from the property.
Key Highlights
- Three‑bedroom Residence 3 in a five‑home collection
- Window‑lined interior with treetop views and abundant natural light
- Wide‑plank hardwood floors throughout the living areas
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
$27,715
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
3.46%
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%
$554,300
$554.3K
Cap Rate 7%
$395,929
$395.9K
Cap Rate 9%
$307,944
$307.9K
Market Conditions
NOI Build-Up for 1,668 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
$53.0K $31.80/SF
− Vacancy
−$2.7K −$1.59/SF
EGI
$50.4K $30.21/SF
− OpEx
−$22.7K −$13.59/SF
NOI
$27.7K $16.62/SF
Area
Washington, DC
Vacancy
5.00%
Lease Rate
$31.80 /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%
$554,300
Cap Rate 7%
$395,929
Cap Rate 9%
$307,944
Alternative Uses
Best Use
Apartment 5plus
$395.9K
$346.4K – $461.9K
NOI $27,715 @ 7.0% cap · market cap 3.46%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$858.0K
$750.7K – $1.00M
NOI $60,058 @ 7.0% cap · market cap 7.51%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
5,266
Businesses Nearby
Explore this area
Business Placement
Demographics for 20001, DC
49,040
Population
26,728
Households
1.8
Avg Household Size
32
Median Age
78%
College-Educated
95%
High-School Grad
2.0 sq mi
ZIP Area
24,520
Density / Sq Mi
$138,730
Median Household Income
$94,675
Median Earnings
$2,464
Median Rent
$844,500
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Residential income property - Window-lined residence with hardwood floors, treetop views, modern kitchen finishes, and substantial storage.
Where is this residential income property located?
The property is located at 2716 SHERMAN AVENUE NW Unit 3 Washington, DC.
What is the asking price?
The asking price for this property is $799,900.
What are key features of this property?
This property features: Three‑bedroom Residence 3 in a five‑home collection; Window‑lined interior with treetop views and abundant natural light; Wide‑plank hardwood floors throughout the living areas
