DC Rental Property Commands $37M
- Jul 22, 2019
A joint venture of Washington, D.C.-based WCSmith and Denver, Colo.-based Aldon Torch has sold Worthington Woods ,a garden-style apartment community located in Washington, D.C., for $37 million. The buyer was Montgomery Housing Partnership.
Greysteel’s Ari Firoozabadi, president and CEO; Kyle Tangney, managing director; Herbert Schwat, director; Henry Mathies, senior investment associate; and Dutch Seitz, investment associate, all of the company’s Washington, D.C. office, handled the sale of the 1944-built garden-style community.
Located at 4419 3rd Str. S.E., the property was fully placed in service under the Section 42 Low Income Housing Tax Credit (LIHTC) program in 2002. Worthington Woods reserves units for residents with incomes that do not top 60 percent of Area Median Income (AMI). That makes it among the most noteworthy tax credit acquisition/rehab opportunities, and among the largest properties, to change hands in D.C. in two years.
Worthington Woods features a mix of studio, one-, two- and three-bedroom units ranging in size between 320 square feet and 716 square feet, according to Yardi Matrix data.
“Our investment sales team worked relentlessly prior to going to market and while on market to level the playing field so all buyers had access to our local and LIHTC knowledge,” Tangney told Multi-Housing News.
“For those groups who weren’t familiar with the location, we provided detailed insight about the major market drivers, submarket areas of interest (and) market comparisons, along with historical and future development data. For those who did not specialize in affordable housing, we walked through the various executions, government agencies and sources of capital,” he added. “Lastly, for those groups who hadn’t completed a sale in the District of Columbia, we made certain all were familiar with rent control and the Tenant Opportunity to Purchase Act (TOPA) timelines to safeguard from any false starts.”
Adjacent employment centers
Situated in D.C.’s Washington Highlands neighborhood, Worthington Woods features a Southeast District of Columbia location close to many significant public- and private-sector job hubs, such as Joint Base Anacostia-Bolling, MGM National Harbor, Andrews Air Force Base, U.S. Naval Research Laboratory, Children’s National Main Hospital and Suitland Federal Center.
This proximity creates demand among current and prospective Worthington Woods residents seeking short commutes to their employment.
Since the start of this year, Greysteel has sold within the District of Columbia’s 7th and 8th Wards 839 multifamily units totaling $82 million. The firm has also been active this year in helping arrange the sale of Highland Ridge, a 197-unit community in Capitol Heights, Md., for $22.1 million.