The Feldman Group of Marcus & Millichap is pleased to present the exclusive offering of 306 Evarts St NE.
Evarts House is a 21-unit multifamily property located at 306 Evarts Street NE in the Brookland neighborhood of Washington, D.C. The property is situated on a 15,478 squarefoot (0.36 acres) lot zoned RF-1. The building is separately metered for gas and electric and has 13 surface parking spaces at the rear of the lot. The property is approximately one mile from the from Rhode Island Ave-Brentwood and the Brookland-CUA Metro stations both of which service the Red Line. The current unit mix features nine onebedroom/ one-bathroom units and 12 two-bedroom/one-bathroom units.
Evarts House offers an investor multiple avenues to increase the property’s value. The immediate value-add component of the property is to rent out the existing 13-surface parking spaces which currently generate no revenue. The current rents for each unit are also generally below market, allowing room for additional revenue growth. By
performing certain strategic renovations, an investor can significantly increase the net operating income of the property. Another method of adding value would be to take advantage government funded HCVP program, which offer rents which are slightly above market along with the benefit of additional stability. Once the property has been renovated and stabilized an investor would be positioned to refinance in order to recover some or all of its principal while maintaining full ownership of the asset. Another possible exit strategy would be the condominium conversion and out-sale process. With an abundance of development underway along the Rhode Island Avenue corridor and nearby Catholic University, condominium values in the submarket have been enjoying significant growth in recent years. Evarts House offers multiple methods of growth potential for a savvy investor as there are numerous ways to add value to the property as well as viable and attractive exit strategies though the condominium conversion process or a cash-out refinance following stabilization.
Evarts House is located in one of D.C.’s designated Opportunity Zones. In 2017, the Tax Cuts and Jobs Act implemented Opportunity Zones throughout the country. Opportunity
Zones provide tax incentives for investments in new businesses and commercial projects in designated areas. Mayor Bowser nominated 25 census tracts in Washington,
D.C. to qualify for these benefits, including parts of the Brookland neighborhood. Opportunity Zones have become extremely sought after by investors and developers around the country, as the tax incentives to invest in these areas are extremely favorable for investors with capital gains exposure. Evarts House represents an ideal Opportunity
Zone investment, as there is a “substantial improvement” threshold that must be met in order to qualify for these tax benefits. An opportunity fund investor could consider an investment or development strategy to fullfill this requirement. More information regarding Opportunity Zones can be found on page 8.
Surrounded by a strong retail presence that includes national chains like Giant Food, Home Depot, and well-known local establishments such as Busboys & Poets and Brookland’s Finest, Evarts House is located in an amenity-rich neighborhood that will continue to attract and support new residents. With major developments planned or
under construction in close proximity to the subject property, such as MidCity’s RIA DC project or MRP’s multi-phase redevelopment of the Rhode Island Avenue Shopping Center, 306 Evarts Street NE is well positioned to benefit from the submarket’s future
growth and appreciation.
