4935 Nannie Helen Burroughs Ave NE 6 Unit Apartment Building $750,000 ($125,000/Unit) 7.15% Cap Rate Washington, DC 20019

4935 Nannie Helen Burroughs Ave NE, Washington, DC 20019
Multifamily Investment Opportunity – Delivered Vacant
Property Overview
Type: 6-unit multifamily walk-up (to be reconfigured to 4 large units)
Building Size: 3,700 SF GBA / 3,400 SF NRA
Lot Size: 3,153 SF (0.07 acres)
Zoning: MU-4 (Mixed-use, moderate density)
Year Built / Renovated: 1947 / 2019
Condition: Fair – prior renovation requires rehab
Neighborhood: Deanwood (East of the River, NE DC)
Transit: Less than one mile to Minnesota Ave Metro Station
The property will be delivered vacant, giving a new owner the ability to reposition and lease at full market rents with no tenant buyouts or TOPA delays.
Investment Metrics
Cap Rate (Market Rents): 7.5%
Cash-on-Cost (All-In ˜ $796K): 10.2%
Equity Gain at Stabilization: ˜36% ($1.08M vs. $796K cost basis)
Target Rent Range: $2,500–$2,800/month for renovated 2–3BR units
Occupancy at Sale: 0% (vacant)
Renovation Summary
Includes full interior rehabilitation, appliance replacement, mold remediation, new finishes, and systems upgrades.
Buyer’s plan calls for four reconfigured, larger apartments averaging 850 SF each (mix of 2BR, 3BR, and 5BR layouts).
Expected stabilized occupancy: 93%.
Key Investment Highlights
1. Delivered Vacant – Full Market Control
No inherited leases or TOPA delays. Owner can immediately reposition, rehab, and lease at market rates.
2. Deep Value-Add Margin
Current contract allocation of $229K vs. CBRE as-is value of $810K offers instant equity and a strong basis well below replacement cost.
3. Proven Economics
CBRE’s pro forma underwrites stabilized NOI at $81K and a 7.5% market cap rate, supporting a $1.08M valuation.
4. DC Metro Connectivity
Located less than one mile from Minnesota Ave Metro; quick access to I-295 and downtown DC.
5. Growth Market
Deanwood continues to attract small-scale multifamily redevelopment and affordable housing investment, with renovated buildings trading $240K–$300K per unit.
6. HCVP Optionality
While previously operated with voucher tenants, vacancy provides the flexibility to lease either at open-market rents or via HCVP for guaranteed income stability.
Market Context
Deanwood is one of DC’s oldest and most active east-of-the-river redevelopment zones, benefitting from public and private revitalization along Nannie Helen Burroughs Avenue and Sheriff Road.
Proximity to Opportunity: Walking distance to recreation, parks, and Metro; 15–20 minutes to downtown DC.
Comparable Sales: Nearby renovated 4–6 unit multifamily properties have recently sold between $1.0M and $1.3M, reinforcing the pro forma valuation.
Investor Summary
Purchase Price: $725,000
All-In Cost (Est.): ~$796,000
Projected Value: $1,080,000
Cap Rate: 7.5%
Upside: 36% equity creation through renovation and lease-up
Delivered vacant, this property offers immediate upside through repositioning, market rent capture, and long-term cash flow in a transitioning DC submarket with strong rental demand