Investment Overview

The Opportunity Marcus & Millichap, as the exclusive listing agent approved by the United States Bankruptcy Court for the District of Columbia, is pleased to present the exclusive offering of 4020-4040 Livingston Road SE, a 31-unit multifamily asset located in Congress Heights, Washington, DC. The sale is subject to a Chapter 11 Bankruptcy process, offering investors a rare opportunity to acquire a property free from the Tenant Opportunity to Purchase Act (TOPA) process due to the properties’ bankruptcy status. This exemption is granted under §42-3404.02 of DC code. This property provides a unique chance for an investor to acquire a well-located multifamily asset with significant upside. The Asset 4020-4040 Livingston Road SE is a 33,264 gross square foot multifamily asset situated on a 41,737 square foot lot. The asset features a strong unit mix for the submarket with 11 one-bedroom units and 20 two-bedroom units. All units are spacious and are estimated to average 850 square feet for one-bedroom units and 1,000 square feet for two-bedroom units. The property currently has five (5) vacant units (83% occupied), and the occupied rents are between 36%-38% below market, presenting significant upside for an investor to capture the rapid growth in the neighborhood to increase rents to market or through the Housing Choice Voucher Program over time. If the vacant units are immediately leased up through the voucher program and current rents are increased through rent control, the asset can generate over $400,000 gross annual rental revenue. The Location The property is located in Congress Heights, a historically residential neighborhood that has been rapidly growing in recent years with wide-spread improvements to infrastructure through local commercial corridors and at major master-planned developments like St. Elizabeth’s East. The nearly $1 billion development project at St. Elizabeth’s East has been well underway, with plans to redevelop and transform the 183-acre lot into a large-scale mixed-use community. In total, the development will deliver more than 1.8 million square feet of office space, 1,300 residential units, 206,000 square feet of retail, two hotels, and a new hospital. The Entertainment and Sports Arena also opened back in 2018 and is a pivotal component of the growth occurring at St. Elizabeth's East and Congress Heights as a whole.