Kennedy Street Investment
For Sale
$1,300,000
825 Kennedy St Nw, Washington, DC 20011
Two properties in high-growth area with redevelopment potential.
Property Size4,494 SF
Lot Size0.06 Acres
Price / SF$289.27
Days on Market173
Property Features for 825 Kennedy St Nw
General Information
Standard status
Active
Size
4,494 SF
Lot size
0.06 Acres
Property subtype
Commercial
Building Details
Year Built
1923
Listing Agency:
KELLER WILLIAMS PREFERRED PROPERTIES
(240) 737-5000
Listed By:
ZINA DIXON · License #640980
Source:
Corcoran
Added: Feb 17
Changed: Aug 8
Last Checked: Aug 8 at 6:13AM
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 PREFERRED PROPERTIES
Investment Insights
Based on property information with market context.
Located on Kennedy St NW in the Petworth area of Washington, DC, 825 and 823 Kennedy St NW are available for sale as a combined package. Situated in a high-growth area undergoing active redevelopment, these properties are surrounded by new investment activity, including conversions to multifamily housing. This location attracts developers and investors aiming to maximize value through strategic improvements. The combined square footage of both buildings is 4494 sqft on a 0.11-acre lot. Both buildings are one story with 10-foot ceilings and new air conditioning units. This presents an excellent opportunity for buyers looking to renovate, reposition, or explore multi-use options such as multifamily potential, benefiting from the neighborhood's continued evolution and increasing demand. The area is supported by ongoing private and public investment, offering an excellent opportunity for value-add or multifamily conversion. Buyers are advised to verify zoning and development potential.
Key Highlights
- High‑growth area undergoing active redevelopment in Petworth, DC.
- Excellent opportunity for value‑add or multifamily conversion.
- Surrounded by new investment activity and multifamily conversions.
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
$71,527
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
5.50%
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%
$1,430,540
$1.4M
Cap Rate 7%
$1,021,814
$1.0M
Cap Rate 9%
$794,744
$794.7K
Market Conditions
NOI Build-Up for 4,494 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
$138.1K $30.72/SF
− Vacancy
−$8.0K −$1.78/SF
EGI
$130.0K $28.94/SF
− OpEx
−$58.5K −$13.02/SF
NOI
$71.5K $15.92/SF
Area
ZIP 20011
Vacancy
5.80%
Lease Rate
$30.72 /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%
$1,430,540
Cap Rate 7%
$1,021,814
Cap Rate 9%
$794,744
Alternative Uses
Best Use
Apartment 5plus
$1.02M
$894.1K – $1.19M
NOI $71,527 @ 7.0% cap · market cap 5.50%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.32M
$2.03M – $2.71M
NOI $162,418 @ 7.0% cap · market cap 12.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,579
Businesses Nearby
Explore this area
Business Placement
Demographics for 20011, DC
67,815
Population
29,658
Households
2.3
Avg Household Size
37
Median Age
55%
College-Educated
90%
High-School Grad
5.4 sq mi
ZIP Area
12,558
Density / Sq Mi
$108,377
Median Household Income
$69,147
Median Earnings
$1,636
Median Rent
$722,200
Median Home Value
Market
Vacancy Rate% for Multifamily in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Commercial land - Two properties in high-growth area with redevelopment potential.
Where is this commercial land located?
The property is located at 825 Kennedy St Nw Washington, DC.
What is the asking price?
The asking price for this property is $1,300,000.
What are key features of this property?
This property features: High‑growth area undergoing active redevelopment in Petworth, DC.; Excellent opportunity for value‑add or multifamily conversion.; Surrounded by new investment activity and multifamily conversions.
