2400-2406 Minnesota Ave Se, Washington, DC 20020

Current/Projected Rent Roll: Upstairs apartments: $3,000 / month = $36,000 / year Ground floor retail (leased convenience store): $2,650 / month = $31,800 / year Vacant first-floor restaurant (market potential): $3,400–$3,700 / month = $40,800–$44,400 / year Total Potential Gross Income (PGI): Low case: $108,600 / year High case: $112,200 / year Expenses: Taxes: Currently only $2,279 (but that’s from a 2002 assessment, so expect much higher once reassessed; let’s conservatively assume $10,000 after sale). Other OPEX (insurance, maintenance, utilities common areas, etc.): $15,000–$20,000 annually (industry standard 15–20% of gross for mixed-use of this size). Net Operating Income (NOI): Low case NOI ≈ $78,600 – $83,600 High case NOI ≈ $82,200 – $87,200 Purchase Price: $1,199,000 Cap Rate: Low NOI / Price = 6.6% High NOI / Price = 7.3% So marketed cap rate range = 6.5% – 7.25%, which is strong for DC mixed-use in Anacostia. For Sale – 2400-2406 Minnesota Avenue SE, Washington, DC … read more …