Solar-Powered Residential Income
For Sale
$874,997
507 M STREET NE Unit 2, Washington, DC 20002
Two-level residence with dual primary suites, private deck, and secure off-street parking.
Property Size1,911 SF
Days on Market81
Property Features for 507 M STREET NE Unit 2
General Information
Standard status
Active
Size
1,911 SF
Property subtype
Interior Row/Townhouse
Additional Details
Public Transit
Yes
Multifamily Units
1
Taxes and HOA fees
Annual Taxes
$5,715
Amenities
roof access
electric vehicle charging
security camera system
smart thermostat
Building Details
Building Size
1,911 SF
Year Built
2008
Listing Agency:
Keller Williams Capital Properties
Listed By:
Gary Michael Raze · License #SP40003716
(301) 288-1152
Source:
Kwcapitalproperties
Added: Jun 26
Changed: Sep 12
Last Checked: Sep 14 at 8:54AM
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 Keller Williams Capital Properties
Investment Insights
Based on property information with market context.
This two-level residential income property combines an open main floor with two oversized bedroom suites upstairs. The main level includes living and dining areas, a powder room, a private rear deck, dedicated workspace, and a chef’s kitchen equipped with a Sub-Zero refrigerator, Wolf range, industrial-grade hood, granite counters, prep island, and custom cabinetry. Cherry hardwood flooring, skylights, exposed brick, recessed lighting, and extensive built-ins add both character and functionality.
The home includes secure off-street parking, roof access, a security camera system, video doorbell, tankless water heater, smart thermostat controls, and integrated audio wiring. A 7.2 kW south-facing solar array is designed to offset nearly all annual electrical consumption, while a Tesla Wall Connector provides Level 2 EV charging capability. The primary suite features a soaking Jacuzzi tub, dual vanity, walk-in shower, and walk-in closet; the junior suite has a private bath with a dual-head shower.
The property is positioned between NoMa Metro Station and Gallaudet University, with Union Market, Trader Joe’s, Union Station, Capitol Hill, neighborhood parks, restaurants, and the H Street Corridor within the surrounding area. Built in 2008.
The home includes secure off-street parking, roof access, a security camera system, video doorbell, tankless water heater, smart thermostat controls, and integrated audio wiring. A 7.2 kW south-facing solar array is designed to offset nearly all annual electrical consumption, while a Tesla Wall Connector provides Level 2 EV charging capability. The primary suite features a soaking Jacuzzi tub, dual vanity, walk-in shower, and walk-in closet; the junior suite has a private bath with a dual-head shower.
The property is positioned between NoMa Metro Station and Gallaudet University, with Union Market, Trader Joe’s, Union Station, Capitol Hill, neighborhood parks, restaurants, and the H Street Corridor within the surrounding area. Built in 2008.
Key Highlights
- Two‑level layout with two oversized bedroom suites, each offering a private bathroom
- 7.2 kW south‑facing solar array designed to offset nearly all annual electrical consumption
- Chef’s kitchen with Sub‑Zero refrigerator, Wolf range, industrial‑grade hood, granite counters, and custom cabinetry
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
$32,534
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
3.72%
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%
$650,680
$650.7K
Cap Rate 7%
$464,771
$464.8K
Cap Rate 9%
$361,489
$361.5K
Market Conditions
NOI Build-Up for 1,911 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
$63.1K $33.00/SF
− Vacancy
−$3.9K −$2.05/SF
EGI
$59.2K $30.95/SF
− OpEx
−$26.6K −$13.93/SF
NOI
$32.5K $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%
$650,680
Cap Rate 7%
$464,771
Cap Rate 9%
$361,489
Alternative Uses
Best Use
Apartment 5plus
$464.8K
$406.7K – $542.2K
NOI $32,534 @ 7.0% cap · market cap 3.72%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$986.7K
$863.3K – $1.15M
NOI $69,066 @ 7.0% cap · market cap 7.89%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Lease Details
1
Residential units
Location Intelligence
Trade Area within ½ mile
4,514
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
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Frequently Asked Questions
What type of property is this?
Residential income property - Two-level residence with dual primary suites, private deck, and secure off-street parking.
Where is this residential income property located?
The property is located at 507 M STREET NE Unit 2 Washington, DC.
What is the asking price?
The asking price for this property is $874,997.
What are key features of this property?
This property features: Two‑level layout with two oversized bedroom suites, each offering a private bathroom; 7.2 kW south‑facing solar array designed to offset nearly all annual electrical consumption; Chef’s kitchen with Sub‑Zero refrigerator, Wolf range, industrial‑grade hood, granite counters, and custom cabinetry
