Fully Leased 1031 Exchange
For Sale
$1,750,000
undisclosed, District Heights, MD 20747
District Heights, MD
Property Size3,710 SF
Price / SF$471.70
Days on Market71
Property Features for undisclosed
General Information
Property type
Residential
Property subtype
Retail
Standard status
Active
Size
3,710 SF
Building Details
Year built
1958
Listing Agency:
Engel & Volkers Washington DC · Engel & Völkers
(202) 525-5236
Listed By:
Anita John · License #5018245
Added: Jun 12
Changed: Aug 19
Last Checked: Aug 21 at 8:06AM
MLS# MDPG2198748
Copyright © 2026 Engel & Völkers. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 1031 exchange property is a 3,710-square-foot retail asset built in 1958. The building is fully leased and reported at 100% occupancy, with long-term tenants in place. A recently renegotiated lease for the nail salon suite includes 5% annual rent escalations, adding scheduled growth to that tenancy.
The property sits along a high-visibility corridor carrying 31,000 VPD and is located within a Prince George's County revitalization zone. The asset has remained under family ownership since 1956 and is offered with a reported 7.32% cap rate. Tenant access should be coordinated in advance, as the occupants are not to be disturbed.
The property sits along a high-visibility corridor carrying 31,000 VPD and is located within a Prince George's County revitalization zone. The asset has remained under family ownership since 1956 and is offered with a reported 7.32% cap rate. Tenant access should be coordinated in advance, as the occupants are not to be disturbed.
Key Highlights
- 3,710‑square‑foot retail asset built in 1958
- 100% occupied with long‑term tenants
- Nail salon lease includes 5% annual rent escalations
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
$83,343
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
4.76%
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%
$1,666,860
$1.7M
Cap Rate 7%
$1,190,614
$1.2M
Cap Rate 9%
$926,033
$926.0K
Market Conditions
NOI Build-Up for 3,710 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
$126.0K $33.96/SF
− Vacancy
−$6.9K −$1.87/SF
EGI
$119.1K $32.09/SF
− OpEx
−$35.7K −$9.63/SF
NOI
$83.3K $22.46/SF
Area
Prince George's County, MD
Vacancy
5.50%
Lease Rate
$33.96 /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%
$1,666,860
Cap Rate 7%
$1,190,614
Cap Rate 9%
$926,033
Alternative Uses
Best Use
Retail
$1.19M
$1.04M – $1.39M
NOI $83,343 @ 7.0% cap · market cap 4.76%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$1.20M
$1.05M – $1.40M
NOI $83,778 @ 7.0% cap · market cap 4.79%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
31,000 VPD
Traffic count
100%
Occupancy
Multi-tenant
Tenancy
Location Intelligence
Trade Area within ½ mile
881
Businesses Nearby
355k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 49%
Dining 30%
Apparel 17%
Groceries 2%
Raising Cane's Chicken Fingers
Dining
38,265 visits/mo
0.5 miles
Royal Farms
Shops & Services
33,718 visits/mo
0.1 miles
Burlington
Apparel
32,276 visits/mo
0.4 miles
Royal Farms
Shops & Services
28,922 visits/mo
0.5 miles
Roses Discount Store
Shops & Services
23,810 visits/mo
0.2 miles
Demographics for 20747, MD
40,696
Population
17,271
Households
2.4
Avg Household Size
38
Median Age
25%
College-Educated
90%
High-School Grad
7.9 sq mi
ZIP Area
5,151
Density / Sq Mi
$72,931
Median Household Income
$48,311
Median Earnings
$1,635
Median Rent
$325,400
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?
1031 exchange property - Fully occupied retail asset with established tenants and a lease featuring annual rent escalations.
Where is this 1031 exchange property located?
The property is located at undisclosed District Heights, MD.
What is the asking price?
The asking price for this property is $1,750,000.
What are key features of this property?
This property features: 3,710‑square‑foot retail asset built in 1958; 100% occupied with long‑term tenants; Nail salon lease includes 5% annual rent escalations
