Takoma Park Historic District
For Sale
Contact for pricing
Pending
7010 Westmoreland Ave, Takoma Park, MD 20912
Commercial property in excellent condition with established business.
Property Size2,800 SF
Days on Market919
Property Features for 7010 Westmoreland Ave
General Information
Standard status
Pending
Size
2,800 SF
Class
B
Total Parking Spaces
4
Property subtype
Retail
Zoning
NR
Occupancy
100%
Lease Type
NNN
Investment Type
Sale/Leaseback
Net Operating Income
$78,000
Building Details
Year Built
1922
Year Renovated
2010
Buildings
1
Stories
3
Tenancy
Single
Listing Agency:
AMR Commercial LLC
Listed By:
Sam Farnum · License #MD 654758
(301) 961-9696
Source:
Crexi
Added: Feb 28, 2024
Changed: Aug 24
Last Checked: Sep 2 at 11:03AM
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 AMR Commercial LLC
Investment Insights
Based on property information with market context.
This commercial property is located in the Takoma Park Historic District. The building is in excellent condition and features solar panels on the roof. A successful business has been established here since 1972. The property is subject to a sale-leaseback with a 10-year, NNN lease. The property is a seven-minute walk to the Takoma Metro Station. The property size is 2,800 square feet.
Key Highlights
- Sale‑Leaseback (10 years, NNN lease)
- Seven minute walk to the Takoma Metro Station
- Building in excellent condition
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
$64,352
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
6.53%
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%
$1,287,040
$1.3M
Cap Rate 7%
$919,314
$919.3K
Cap Rate 9%
$715,022
$715.0K
Market Conditions
NOI Build-Up for 2,800 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
$98.1K $35.04/SF
− Vacancy
−$6.2K −$2.21/SF
EGI
$91.9K $32.83/SF
− OpEx
−$27.6K −$9.85/SF
NOI
$64.4K $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%
$1,287,040
Cap Rate 7%
$919,314
Cap Rate 9%
$715,022
Alternative Uses
Best Use
Retail
$919.3K
$804.4K – $1.07M
NOI $64,352 @ 7.0% cap · market cap 6.53%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$985.0K
$861.9K – $1.15M
NOI $68,948 @ 7.0% cap · market cap 7.00%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,336
Businesses Nearby
21k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 51%
Dining 34%
Home Improvements & Furnishings 15%
BP
Shops & Services
10,880 visits/mo
0.4 miles
Starbucks
Dining
7,325 visits/mo
0.2 miles
Old Takoma Ace Hardware
Home Improvements & Furnishings
3,282 visits/mo
0.0 miles
Demographics for 20912, MD
25,463
Population
10,140
Households
2.5
Avg Household Size
38
Median Age
51%
College-Educated
86%
High-School Grad
2.7 sq mi
ZIP Area
9,431
Density / Sq Mi
$82,097
Median Household Income
$48,447
Median Earnings
$1,452
Median Rent
$671,400
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?
Storefront property - Commercial property in excellent condition with established business.
Where is this storefront property located?
The property is located at 7010 Westmoreland Ave Takoma Park, MD.
What is the asking price?
The asking price for this property is $985,000.
What are key features of this property?
This property features: Sale‑Leaseback (10 years, NNN lease); Seven minute walk to the Takoma Metro Station; Building in excellent condition
