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Multifamily

The Brookland

3220 12th St NE, Washington, DC 20017

Listing Price: Request For Offer

Number of Units
22
Gross SF
16,632

Investment Overview

Offering Overview As the exclusive listing broker, Marcus & Millichap is pleased to present the opportunity to acquire The Brookland, a rent control exempt, 22-unit, 16,632-gross-square-foot, multifamily asset located in the rapidly expanding neighborhood of Brookland, NE DC. The asset is located just four blocks from Brookland-CUA Metro Station, servicing the Red Line. The Brookland submarket has been experiencing a massive influx of development over the last decade, with notable projects such as the Monroe Street Market, the RIA development on Rhode Island Avenue, Hanover 8th, and a slew of condo projects along the 12th Street corridor. With only a handful of mid-sized multifamily assets in the submarket, this is a unique opportunity to invest in one of the more rapidly growing markets in the entire city. The Asset A rent control exempt asset, The Brookland is a fully detached three-story building sitting on a commercially-zoned corner lot. The unit mix consists of 20 one-bedroom units and two studio units. On average, the one-bedroom units are just under 600 square feet with the opportunity to reconfigure units and add bedrooms. Additionally, the building contains underutilized space in the lower level that an investor could use to add units or building amenities. The Brookland is separately-metered for electricity, and tenants pay for all utilities except for gas and water. The asset has recently undergone several significant capital improvements, including replacing all windows and brick repointing. The roof was replaced in 2008, and the building underwent a substantial electrical upgrade resulting in each unit being upgraded to 125 Amps per electric panel. The Investment Opportunity An investor has the unique opportunity to acquire a well-maintained boutique multifamily asset, with strong historical rental income and collections. The property features immediate upside as the property is exempt from rent control, allowing the new owner to capture upside in rents as rent growth occurs. With the average rent in the building at $1,286 per unit, an investor, upon unit upgrades, can achieve over a 20 percent increase in rental income in the first year of operations. Nearby renovated one-bedroom units in Class C buildings are currently leasing for $1,600.A new owner also has the opportunity to convert one-bedroom units to two-bedroom units garnering additional income per unit through market-rate rentals or the Housing Choice Voucher Program (HCVP). With two-bedroom units (tenants pay utilities) achieving rents of $2,075 per month. Additionally, the property's zoning allows an investor to add units and maximize the underutilized core space. Adjacent condo developments have also fared well, with recent out sales achieving over $600 per square foot.

Investment Highlights

  • Rent Control Exempt Asset
  • Separately-Metered for Electric (All-Electric Units)
  • Notable Capital Improvements
  • Value-Add Potential with Flexible Zoning
  • Transit-Oriented Location
  • In The Direct Path of Development

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President / District Manager

    (202) 536-3700

    License(s) DC: BR200201612

    District of Columbia

Multifamily

The Brookland

Listing Price: Request For Offer

Number of Units
22
Gross SF
16,632

Investment Highlights

  • Rent Control Exempt Asset
  • Separately-Metered for Electric (All-Electric Units)
  • Notable Capital Improvements
  • Value-Add Potential with Flexible Zoning
  • Transit-Oriented Location
  • In The Direct Path of Development

Investment Overview

Offering Overview As the exclusive listing broker, Marcus & Millichap is pleased to present the opportunity to acquire The Brookland, a rent control exempt, 22-unit, 16,632-gross-square-foot, multifamily asset located in the rapidly expanding neighborhood of Brookland, NE DC. The asset is located just four blocks from Brookland-CUA Metro Station, servicing the Red Line. The Brookland submarket has been experiencing a massive influx of development over the last decade, with notable projects such as the Monroe Street Market, the RIA development on Rhode Island Avenue, Hanover 8th, and a slew of condo projects along the 12th Street corridor. With only a handful of mid-sized multifamily assets in the submarket, this is a unique opportunity to invest in one of the more rapidly growing markets in the entire city. The Asset A rent control exempt asset, The Brookland is a fully detached three-story building sitting on a commercially-zoned corner lot. The unit mix consists of 20 one-bedroom units and two studio units. On average, the one-bedroom units are just under 600 square feet with the opportunity to reconfigure units and add bedrooms. Additionally, the building contains underutilized space in the lower level that an investor could use to add units or building amenities. The Brookland is separately-metered for electricity, and tenants pay for all utilities except for gas and water. The asset has recently undergone several significant capital improvements, including replacing all windows and brick repointing. The roof was replaced in 2008, and the building underwent a substantial electrical upgrade resulting in each unit being upgraded to 125 Amps per electric panel. The Investment Opportunity An investor has the unique opportunity to acquire a well-maintained boutique multifamily asset, with strong historical rental income and collections. The property features immediate upside as the property is exempt from rent control, allowing the new owner to capture upside in rents as rent growth occurs. With the average rent in the building at $1,286 per unit, an investor, upon unit upgrades, can achieve over a 20 percent increase in rental income in the first year of operations. Nearby renovated one-bedroom units in Class C buildings are currently leasing for $1,600.A new owner also has the opportunity to convert one-bedroom units to two-bedroom units garnering additional income per unit through market-rate rentals or the Housing Choice Voucher Program (HCVP). With two-bedroom units (tenants pay utilities) achieving rents of $2,075 per month. Additionally, the property's zoning allows an investor to add units and maximize the underutilized core space. Adjacent condo developments have also fared well, with recent out sales achieving over $600 per square foot.

Exclusively Listed By

Broker of Record

  • Brian Hosey

    First Vice President / District Manager

    (202) 536-3700

    License(s): DC: BR200201612

    District of Columbia

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