Attention Investors — Exceptional Basis for a 5‑Unit Value‑Add Play in Petworth.
4801 3rd St NW presents a rare opportunity to acquire a five‑unit asset at a price point that supports meaningful repositioning and long‑term appreciation. The property is currently operated under a group‑rental structure with one long‑term tenant, generating a combined monthly income of $8,084.

With three 3‑bedroom units and two 2‑bedroom units, the building is well‑positioned for an investor‑driven transition to the voucher program. Recent Rent Resonablenss rent estimator guidance for this ZIP code reflects $4,113 for 3BR units and $2,805 for 2BR units, providing a clear framework for income growth once an investor implements a structured lease‑up and compliance plan.

A fully stabilized rent roll at these program‑friendly levels would reflect an illustrative pro forma gross annual rent of approximately $185,712. After accounting for typical operating expenses in this asset class, investors often model an estimated stabilized NOI in the $115,000–$125,000 range, depending on final operating strategy, compliance execution, and program approvals. These figures are for illustrative underwriting purposes only and are not guarantees of future performance.

At an asking price of $699,000, investors acquire a 5‑unit building in one of DC’s most resilient rental corridors at a basis that allows room for operational improvements, licensing cleanup, and strategic repositioning. This profile also aligns well with 1031 exchange objectives, offering a low entry basis, durable demand drivers, and a clear path to forced appreciation through improved operations rather than speculative redevelopment.

Many investors underwriting DC multifamily also evaluate potential tenant transition costs as part of their repositioning strategy. While every situation is unique and must comply with DC law, voluntary agreements and negotiated move‑outs are common tools that investors model. If capital is allocated toward tenant transition costs, the increased stabilized income potential may shorten the payback period once the building is fully stabilized. Actual outcomes depend on the investor's execution, the tenant's cooperation, and program approval.