Four-Unit Mixed-Use
For Sale
$1,195,000
316 MAIN STREET, Gaithersburg, MD 20878
Four-unit mixed-use property with retail spaces and a second-floor apartment, featuring recent renovations to apartment and basement.
Property Size4,000 SF
Price / SF$298.75
Days on Market76
Property Features for 316 MAIN STREET
General Information
Standard status
Active
Size
4,000 SF
Property subtype
Commercial
Additional Details
Multifamily Units
2
Building Details
Year Built
2001
Tenancy
Multi
Listing Agency:
TTR Sotheby's International Realty
(301) 615-3000
Listed By:
Elaine S. Koch
(301) 641-5865
Source:
Cummingsrealtors
Added: Jun 24
Changed: Sep 6
Last Checked: Sep 7 at 7:05AM
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 TTR Sotheby's International Realty
Investment Insights
Based on property information with market context.
This four-unit mixed-use building includes retail spaces and a second-floor apartment. The property features recent, high-end renovations to the apartment and basement, reflecting updated finishes and thoughtful design throughout.
Located in the Kentlands area of Gaithersburg, the building is positioned within a walkable setting and is described as just steps from Whole Foods, along with nearby shops and restaurants.
Located in the Kentlands area of Gaithersburg, the building is positioned within a walkable setting and is described as just steps from Whole Foods, along with nearby shops and restaurants.
Key Highlights
- Four‑unit mixed‑use building built in 2001 with retail spaces and a second‑floor apartment
- Steady long‑term tenants in the retail spaces and second‑floor apartment
- Recent high‑end renovations to the apartment and basement
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
$91,931
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
7.69%
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%
$1,838,620
$1.8M
Cap Rate 7%
$1,313,300
$1.3M
Cap Rate 9%
$1,021,456
$1.0M
Market Conditions
NOI Build-Up for 4,000 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
$140.2K $35.04/SF
− Vacancy
−$8.8K −$2.21/SF
EGI
$131.3K $32.83/SF
− OpEx
−$39.4K −$9.85/SF
NOI
$91.9K $22.98/SF
Area
Montgomery County, MD
Vacancy
6.30%
Lease Rate
$35.04 /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%
$1,838,620
Cap Rate 7%
$1,313,300
Cap Rate 9%
$1,021,456
Alternative Uses
Best Use
Retail
$1.31M
$1.15M – $1.53M
NOI $91,931 @ 7.0% cap · market cap 7.69%
Second Best
Apartment 5plus
$943.5K
$825.6K – $1.10M
NOI $66,045 @ 7.0% cap · market cap 5.53%
Theoretical Best
Specialty Retail
$1.41M
$1.23M – $1.64M
NOI $98,497 @ 7.0% cap · market cap 8.24%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Residential units
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
1,298
Businesses Nearby
Explore this area
Business Placement
Demographics for 20878, MD
65,990
Population
25,297
Households
2.6
Avg Household Size
40
Median Age
70%
College-Educated
96%
High-School Grad
20.4 sq mi
ZIP Area
3,235
Density / Sq Mi
$142,062
Median Household Income
$76,026
Median Earnings
$2,188
Median Rent
$675,200
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Four-unit mixed-use property with retail spaces and a second-floor apartment, featuring recent renovations to apartment and basement.
Where is this mixed-use property located?
The property is located at 316 MAIN STREET Gaithersburg, MD.
What is the asking price?
The asking price for this property is $1,195,000.
What are key features of this property?
This property features: Four‑unit mixed‑use building built in 2001 with retail spaces and a second‑floor apartment; Steady long‑term tenants in the retail spaces and second‑floor apartment; Recent high‑end renovations to the apartment and basement
