Investment Overview

The Milam Group of Marcus & Millichap is pleased to present its Broker Opinion of Value for the development opportunity located at 2001-2003 Benning Road NE in Washington, D.C. The property is situated in Old City 1, an area of Washington, D.C. that offers some of the highest Housing Choice Voucher Program (HCVP) rents in the city. The first level will be delivered 100 percent leased to Benning Market/Dollar Plus, which recently signed a ten-year lease with two five-year options, providing a secure, long-term income stream. The vacant sublevel, which had been previously occupied by a lounge concept, is completely rentable with ceiling heights up to 10’4”, two points of ingress and egress, and can be occupied by an owner-operator or tenant after completing necessary renovations. Finally, the property’s eight multifamily can be quickly leased to residential tenants, allowing the buyer to establish new market rents immediately without delays related to the Tenant Opportunity to Purchase Act (TOPA). Since 2019, the current ownership has invested over $500,000 in capital improvements, which include a new rubber roof, upgraded electrical and plumbing systems, new HVAC units, windows, metal doors, and exterior masonry restoration. The combination of in-place cash-flow and vacant multifamily units in the building creates an attractive opportunity for either an investor or owner-operator. The property is positioned at a highly visible hard corner in the rapidly developing Benning Road corridor. It enjoys exceptional exposure to nearly 31,000 vehicles daily, as well as strong pedestrian traffic driven by the surrounding residential density, schools, and neighborhood-serving retail. The Benning Road corridor has emerged as one of the District's most active redevelopment zones, connecting H Street NE to Minnesota Avenue and serving as a key east-west artery for both residents and commuters. Retail assets in this area are performing well, supported by increasing population density and consistent consumer spending growth. Neighborhood-serving retail, especially in food, beverage, and essential goods, continues to show low vacancy rates and high tenant retention. This corridor has quickly evolved into one of the most dynamic residential areas in the District, benefiting from its proximity to the H Street Corridor and Capitol Hill, leading to strong absorption and sustained rent growth supported by significant private investment and a diverse renter demographic.