Marcus & Millichap (NYSE: MMI) announced today, the sale of a four-property multifamily portfolio approved through the Chapter 11 Bankruptcy Process in the Deanwood submarket of Northeast Washington, D.C.
Marty Zupancic, first vice president investments, and Christian Barreiro, senior associate, of Marcus & Millichap's Washington, D.C. office brokered the sale of the asset between the Seller, Marc Albert, a Chapter 11 Bankruptcy Trustee appointed by the United States Bankruptcy Court for The District of Columbia, and the Buyer, a private real estate investment group based out of Prince George's County, Maryland. The four apartment buildings totaling 46 apartment units are located at 5128 Sheriff Road NE, 5134 Sheriff Road NE, 711 49th Street NE, and 719 49th Street NE and sold for a total portfolio price of $4,600,000 or $100,000 per unit.
The portfolio is situated in the burgeoning Deanwood submarket of Northeast D.C. All four assets are less than one mile from both the Deanwood and Minnesota Avenue Metro Stations, which service the Orange Line, and are in a designated Opportunity Zone. Deanwood is in the crosshairs of development in the District with new projects slated to deliver within the next five years, including the 530-unit Kenilworth Courts redevelopment, the 150-unit Deanwood Hills affordable project, the 86-unit Strand Theater redevelopment, the 183-unit Deanwood Town Center, and the redevelopment of the Deanwood Metro Station.
Regarding the sale, Zupancic stated, "Our team has developed a significant practice in advising bankruptcy trustees as well as owners of multifamily assets who find themselves in bankruptcy. We understand the bankruptcy process and our role as the court approved real estate broker. In this case we were able to generate eight written offers on the portfolio, which gave the Chapter 11 Trustee multiple options when assessing how to move the process forward. The fact that we exceeded list price and settled the sale during COVID-19 is also a testament to our tightly run process." Barreiro added, "The fact that the transaction was exempt from TOPA was certainly a contributing factor towards achieving the positive result that we did for the Trustee."
About Marcus & Millichap (NYSE: MMI)
With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed 9,726 transactions in 2019 with a value of approximately $50 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry's most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com.
