2839 Minnesota Ave SE
Washington, DC 20019
Multifamily Property For Sale · 4 Units

The following property is a four-unit 2-bedroom/1-bath multifamily property located at 2839 Minnesota Avenue SE in the Hillcrest submarket of Washington, DC. The property is approximately 3,480 gross square feet with a lot size of 4,160 square feet. It is located within a six-minute walk to Fort Dupont Park. The parcel (Square: 5507 Lot: 0027) is zoned RA-1. Built in 1941, this two-story building contains four 2-bedroom 1-bath units complete with dens and dining areas. The property is separately metered for both electric and gas, which are paid for by the tenants. The owner is responsible for the building’s overall water consumption and common area electric. The building also features a sizable rear yard which can effectively serve as a future parking area. There are multiple of lease-up strategies that a buyer can implement on this deal. The current rents are $1,200; $1,200; $1,300 and $1,385. However, the Housing Choice Voucher Program (HCVP) rate for a two-bedroom “without utilities” in the Hillcrest neighborhood is $1,564. This represents a 26%, 26%, 18%, and 12% difference between the in-place rents and the Hillcrest HCVP rate. In other words, upon turnover of a $1,200 unit and leasing it up to an HCVP tenant, there is a $364 potential increase in rent. Also, since the building is a 4-unit building, a buyer who owns 4 or less units in the DC area, will not be subject to DC rent control, giving a buyer the freedom to increase rents, once the current leases are up, to market rate. The subject property is located in Ward 7 in the Hillcrest submarket of Southeast Washington, DC. This submarket has established a sister relationship with Penn- Branch and is described by the Hillcrest Community Civic Association as, “a community of rolling hills, manicured lawns, red brick colonials, and ramblers. The Penn-Branch and Hillcrest neighborhoods are full of civic-minded people, who love their neighborhood. The communities of Hillcrest and Penn- Branch, which were once considered suburbs of Washington, DC, are often referred to as the best-kept secrets of Washington.” According to UrbanTurf, Hillcrest’s median home prices in 2019 surged 44% during a 12-month period between 2018 and 2019, signaling a huge positive shift in perception.