By Laura Calugar
Marcus & Millichap closed the sale of Gresham House, a mixed-use building in Washington, D.C. The asset traded for $3.5 million or almost $234,000 per unit. Senior Associate Cameron Webb and Associate Jesse Mates in Marcus & Millichap’s Washington, D.C. office had the exclusive listing to market the property on behalf of the seller. The seller is participating in an IRC Section 1031 tax exchange to capitalize on selling at the top-of-the-market at a 3.7 percent capitalization rate to now chase yield in another local market with a value-add transaction. Webb and Mates also procured the buyer, a local investor.
Located at 2833 Georgia Ave. NW., Gresham House is one block north of Howard University’s campus. The asset is within one mile from four different metro stations. The mixed-use property includes three efficiencies and 12 one-bedroom units as well as 3,358 square feet of retail and office space. Some apartments feature updated kitchens and bathrooms. The property sits on a 5,818 square-foot mixed-use lot with parking available for both the residential and commercial tenants.
A value-add opportunity
The new owner plans to increase revenue levels by renovating the units and modernizing the 1955-built property.
“This transaction solidifies that local investors are still aggressively pursuing well-located, value-add properties in Washington, D.C., creating a competitive bidding environment. The property was on the market for almost a week and we generated over 10 property tours and had multiple offers that drove up the initial list price and ultimately traded $100,000 above the seller’s expectations,” said Mates, in a prepared statement.
Image courtesy of Marcus & Millichap