Anacostia Street is a 28-unit distressed asset acquired at auction, consisting of two adjacent 14-unit buildings. One building was stabilized and fully leased at the time of purchase, generating immediate cash flow. The second building presented a clear value-add opportunity, undergoing a full gut renovation that included reconfiguring eight units to increase bedroom count—enhancing both rental income and overall asset value.
The property was acquired for $2.6 million, with an estimated post-renovation value of $7.5 million. Upon stabilization, the asset will be refinanced to return investor equity while retaining long-term cash flow and value appreciation potential.