3205 D St SE

THE BUILDING
The property is an existing two-story semi-detached multifamily apartment building containing a total of four, potentially five, dwelling units with 3,162 square feet of gross building area, plus an unfinished basement level (according to the tax record). The building was constructed in 1943 and reportedly completely renovated in 2021. The zoning is R-2 (Residential Zone) and the lot size is 4,053 square feet, or 0.09 acres. There are four 3 BR / 1 BA units, with two on each floor, plus the potential for a fifth unit in the basement. The basement unit is currently unfinished, but the active BBL issued on March 1, 2023 allows five units. Utility providers are DC Water and Sewer Authority, PEPCO, Washington Gas, and Verizon.
THE NEIGHBORHOOD
The nearest fire and police stations are within one mile of the property. The local school system includes Kimball Elementary School, Sousa Miller Middle School, and Anacostia High School. Major colleges and universities are Georgetown, George Washington, and American Universities in Washington, DC, as well as the University of Maryland, College Park in Maryland.
The main access into the neighborhood is the Baltimore-Washington Parkway/Anacostia Freeway (Route 295). Access to the area from the Anacostia Freeway is provided by Kenilworth Avenue NE to Minnesota Avenue SE and then to D Street SE. Public transportation is provided by the Washington Metropolitan Area Transit Authority (WMATA) and provides access throughout Washington, DC and to major destinations in suburban Maryland and Virginia. According to WMATA, the nearest subway station is the Benning Road Metrorail Station (Blue Line), located about 1.5 miles from the property. The closest bus stop is about two blocks east of the property at the corner of Minnesota Avenue SE and 34th Street SE.
THE OPPORTUNITY
This property is being sold by a Chapter 7 Bankruptcy Trustee, therefore the sales are exempt from DC’s Tenant Opportunity to Purchase Act (TOPA). This allows for an expedited acquisition process, including necessary Bankruptcy Court approval.
Thank you for your interest in this unique portfolio of nine multifamily properties across Washington, DC's NE and SE neighborhoods. This offering provides an accessible entry point for first-time multifamily investors and a growth opportunity for established firms looking to expand their portfolio of income-producing assets. Ranging from a four-unit property at 3205 D Street, SE, to a fifteen-unit community at 2100 15th Street, SE, this portfolio offers options to suit a variety of investment goals.
With housing prices on the rise and strong demand for quality rental properties, this is an ideal time to benefit from the economic momentum in multifamily investing. Key benefits include:
Consistent Cash Flow
Multifamily properties generate steady income from multiple rental units, reducing dependency on a single tenant and ensuring reliable cash flow.
Economies of Scale
Managing multiple units within one portfolio can reduce per-unit costs for maintenance, repairs, and professional management.
Portfolio Diversification
Multifamily properties bring diversity to real estate portfolios, offering stability and reduced risk compared to other asset classes.
Appreciation Potential
Multifamily properties generally appreciate over time through "forced appreciation," where values align with increased net operating income driven by market demand and rent adjustments.
Tax Advantages
Investors benefit from tax incentives, including bonus depreciation, interest deductions, and 1031 exchange opportunities to defer capital gains taxes.
How is a Bankruptcy Sale Different from other Real Estate Transactions?
In a bankruptcy sale, once the Sales Contract is ratified by the Bankruptcy Trustee, it requires approval by the Bankruptcy Court. This process typically takes 30 to 45 days from contract signing to Court approval. After the Court issues an Order approving the sale, the Trustee can proceed with closing, similar to any standard real estate transaction.
Are these Sales Subject to the Tenant Opportunity to Purchase Act (TOPA) in DC?
No, bankruptcy sales are exempt from TOPA restrictions, allowing for a streamlined transaction without the need for tenant purchase rights.
Are the Properties Professionally Managed?
Yes, all properties are managed by the 10Ninety Group, a reputable DC-based residential property management firm.
Is their access to a Rent Roll, 12-Month Operating Statement, or Lease Copies?
Currently, we don’t have complete financial documentation due to the nature of this bankruptcy sale. The property manager is actively gathering a rent roll, T12 operating statement, and lease copies to provide the most accurate information possible.
Can I Tour the Units in the Property I’m Interested In?
A RealMarkets team member will show vacant units as part of your preliminary due diligence starting in January. Occupied units, however, are only accessible to purchasers with a ratified sales contract.
Is a Due Diligence Period Allowed in My Offer?
Yes, you may include a due diligence period in your offer. However, all contingencies, including financing, must be removed prior to the scheduled Court hearing. By the time of the Bankruptcy Court’s approval hearing, the contract should be non-contingent.
Do I Have to Buy All the Properties, or Can I Select Individual Ones?
You’re welcome to purchase one, several, or all of the available properties. As the Bankruptcy Trustee reviews offers on a rolling basis, we encourage you to submit your offer as soon as possible.
One Final Note
Each prospective buyer is encouraged to verify all information provided herein. All property is sold in strictly as-is, where-is condition.
To learn more or to submit an offer on one, multiple, or all of these properties, please reach out to a member of our sales team. We look forward to supporting your investment journey and helping you reach your financial goals.