Silver Spring Mixed-Use Redevelopment
For Sale
$2,000,000
7961 Eastern Ave, Silver Spring, MD 20910
Value-add mixed-use redevelopment in Silver Spring Opportunity Zone.
Property Size16,000 SF
Lot Size0.14 Acres
Price / SF$125
Days on Market828
Property Features for 7961 Eastern Ave
General Information
Standard status
Active
Size
16,000 SF
Lot size
0.14 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$31,891
Building Details
Year Built
1956
Listing Agency:
FLEUR DE LIS, LLC
(301) 750-7040
Listed By:
MONIQUE A WALKER · License #BR98379354
Source:
Corcoran
Added: May 6, 2024
Changed: Aug 8
Last Checked: Aug 8 at 5:56AM
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 FLEUR DE LIS, LLC
Investment Insights
Based on property information with market context.
Located in downtown Silver Spring, this property presents a value-add mixed-use redevelopment opportunity within an Opportunity Zone. The site is an office building situated in a newly up-zoned Commercial Residential Zone, offering convenient access to Metro rail and Metro bus lines on Eastern Avenue, bordering Washington, DC. The property is located in a Priority Funding Area and benefits from the expansion of uses per the 2022 Amended Comprehensive Plan through the Silver Spring Downtown and Adjacent Comprehensive Plan. The amended plan allows for a 4 FAR or 24,000 SQFT building potential. The building is currently 16,000+/- SQFT. Approved Zoning Code Amendments make this location suitable for repositioning or redevelopment. Approved transit and roadway improvements will allow for greater connectivity throughout the 8 distinct districts making up Downtown Silver Spring. Environmentally and security-focused design on the multi-modal trails/paths and roadways have an emphasis on storm water management and cooling roadways mechanism like right of way rain gardens, and expansion of tree canopy on pedestrian connector roads, sidewalks and roadways. Recent Montgomery County legislation will allow greater density in the split-zoned (CR-3, C-3, R-3, and H-125) location. Proximity to the abutting Kennett Street Garage Parking Lot opens up opportunity for multiple redevelopment possibilities to include institutional, residential, health, education, philanthropic, cultural, charitable, and specialty uses such as family day care, hospital, educational facilities, private club/service organizations, religious assemblies, restaurants, hotels/motels, dental labs, research and development facilities, health clubs, and radio facilities.
Key Highlights
- High redevelopment potential with up‑zoned commercial residential zone, offering 24,000 sqft potential.
- Opportunity Zone & Priority Funding Area offers potential tax advantages and investment incentives.
- Excellent transit access with close proximity to Metro rail and Metro bus on Eastern Avenue.
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
$119,700
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
5.99%
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%
$2,394,000
$2.4M
Cap Rate 7%
$1,710,000
$1.7M
Cap Rate 9%
$1,330,000
$1.3M
Market Conditions
NOI Build-Up for 16,000 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
$288.0K $18.00/SF
− Vacancy
−$36.0K −$2.25/SF
EGI
$252.0K $15.75/SF
− OpEx
−$132.3K −$8.27/SF
NOI
$119.7K $7.48/SF
Area
Montgomery County, MD
Vacancy
12.50%
Lease Rate
$18.00 /SF/Yr
Expense Ratio
52.50%
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%
$2,394,000
Cap Rate 7%
$1,710,000
Cap Rate 9%
$1,330,000
Alternative Uses
Best Use
Mixed Use
$3.09M
$2.70M – $3.60M
NOI $216,000 @ 7.0% cap · market cap 10.80%
Second Best
Office B
$2.79M
$2.44M – $3.26M
NOI $195,540 @ 7.0% cap · market cap 9.78%
Theoretical Best
Specialty Retail
$5.63M
$4.92M – $6.57M
NOI $393,990 @ 7.0% cap · market cap 19.70%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
3,464
Businesses Nearby
Explore this area
Business Placement
Demographics for 20910, MD
45,610
Population
23,209
Households
2
Avg Household Size
36
Median Age
74%
College-Educated
95%
High-School Grad
4.6 sq mi
ZIP Area
9,915
Density / Sq Mi
$107,994
Median Household Income
$70,022
Median Earnings
$1,992
Median Rent
$690,900
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Value-add mixed-use redevelopment in Silver Spring Opportunity Zone.
Where is this mixed-use property located?
The property is located at 7961 Eastern Ave Silver Spring, MD.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: High redevelopment potential with up‑zoned commercial residential zone, offering 24,000 sqft potential.; Opportunity Zone & Priority Funding Area offers potential tax advantages and investment incentives.; Excellent transit access with close proximity to Metro rail and Metro bus on Eastern Avenue.
