Corner Lot Restaurant with
For Sale
Contact for pricing
2827 Sherman Ave Nw, Washington, DC 20001
Corner lot restaurant property designated for a restaurant, bar, or cafe, with potential patio appeal.
Property Size3,200 SF
Price / SF$593.72
Days on Market816
Property Features for 2827 Sherman Ave Nw
General Information
Standard status
Active
Size
3,200 SF
Property subtype
RETAIL
Listing Agency:
ONE Street
(202) 867-5309
Listed By:
Kevin Brandes · License #DCSP98378229
(240) 813-9344
Source:
Moodyscre
Added: Jun 20, 2024
Changed: Sep 12
Last Checked: Sep 12 at 9:25AM
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 ONE Street
Investment Insights
Based on property information with market context.
This corner lot restaurant property is specifically designated for a restaurant, bar, or cafe use, with the potential for added patio charm. The asset is presented as a turnkey fit for food and beverage concepts seeking an established restaurant-specific setting.
The property is located at 2827 Sherman Ave NW in Washington, DC 20001, and is described in the public remarks as being in a sought-after area tied to Columbia Heights’ dining activity.
Offered for sale, this site is positioned to support a restaurant, bar, or cafe operator, with the added option of incorporating a patio as part of the guest experience.
The property is located at 2827 Sherman Ave NW in Washington, DC 20001, and is described in the public remarks as being in a sought-after area tied to Columbia Heights’ dining activity.
Offered for sale, this site is positioned to support a restaurant, bar, or cafe operator, with the added option of incorporating a patio as part of the guest experience.
Key Highlights
- Corner lot restaurant property designated for a restaurant, bar, or cafe
- 2827 Sherman Ave NW offers potential patio appeal
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
$61,142
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
3.22%
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%
$1,222,840
$1.2M
Cap Rate 7%
$873,457
$873.5K
Cap Rate 9%
$679,356
$679.4K
Market Conditions
NOI Build-Up for 3,200 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
$84.5K $26.40/SF
− Vacancy
−$3.0K −$0.92/SF
EGI
$81.5K $25.48/SF
− OpEx
−$20.4K −$6.37/SF
NOI
$61.1K $19.11/SF
Area
Washington, DC
Vacancy
3.50%
Lease Rate
$26.40 /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%
$1,222,840
Cap Rate 7%
$873,457
Cap Rate 9%
$679,356
Alternative Uses
Best Use
Specialty Retail
$873.5K
$764.3K – $1.02M
NOI $61,142 @ 7.0% cap · market cap 3.22%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.65M
$1.44M – $1.92M
NOI $115,218 @ 7.0% cap · market cap 6.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
5,266
Businesses Nearby
108k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 45%
Groceries 42%
Electronics 5%
Dining 4%
Giant
Groceries
45,769 visits/mo
0.5 miles
7-Eleven
Shops & Services
25,739 visits/mo
0.4 miles
BP
Shops & Services
8,046 visits/mo
0.5 miles
Bank of America
Shops & Services
4,955 visits/mo
0.5 miles
Nationwide Insurance
Shops & Services
4,153 visits/mo
0.4 miles
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
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Retail in Washington, DC
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - Corner lot restaurant property designated for a restaurant, bar, or cafe, with potential patio appeal.
Where is this conventional restaurant located?
The property is located at 2827 Sherman Ave Nw Washington, DC.
What is the asking price?
The asking price for this property is $1,899,900.
What are key features of this property?
This property features: Corner lot restaurant property designated for a restaurant, bar, or cafe; 2827 Sherman Ave NW offers potential patio appeal
