Inside the Project: Washington, DC Multifamily Infill
This new construction condo building started off as an empty lot between two multifamily buildings in the Dupont Circle neighborhood of NW Washington, DC. At first glance this property appeared to be a simple alleyway, but it had a prime location and dimensions for an investor to build on. Our borrower secured a Refinancing Loan to take the place of the loan they used to acquire the property and to cover construction costs throughout the project. Let’s dive deeper into this project to see how our borrower executed it effectively.
Quick Project Stats:
Built: 2022 (empty lot previously)
Home Type: Condo Building (2 units)
As-Is:
- Empty lot between multifamily buildings
As-Repaired Unit 1:
- 2 bed, 2 bath
- 1,262 sqft
As-Repaired Unit 2:
- 3 bed, 3 bath
- 1,773 sqft
Purchased: $1,200,000
Value when Refinanced: $2,000,000
Construction: $810,000
ARV: $3,000,000
Quick Neighborhood Stats:
Zipcode Median Sales Price: $619,000
Zipcode Median Days on Market: 36
Walk Score: 97/100 (Walker’s Paradise)
School District:
- Marie Reed Elementary, 8/10
- Cardozo Education Campus, 3/10
- Columbia Heights Education Campus, 7/10
Location
This property is located in the Dupont Circle neighborhood of NW Washington, DC. This neighborhood is considered a go-to location for buyers looking to experience the quintessential metropolitan experience with no shortage of classic DC rowhouses and condo buildings. Dupont Circle boasts an abundance of shopping, dining, and entertainment all within a few minutes walk; giving it a Walk Score rating of “Walker’s Paradise.” Dupont Circle’s central DC location makes it a great buying opportunity for federal government employees and contractors, K Street executives, and Penn Quarter workers. You would be hard-pressed to find a more desirable neighborhood for established Washingtonians and those looking to experience all that the District has to offer at arms length.
Property
This gorgeous 2-unit condo building began as an empty lot between two existing condo buildings. While it appeared to be an alleyway at first glance, our investor saw the massive potential for an “urban infill” project using this lot. Our borrower acquired this property and began construction using another lender, but refinanced their loan with WCP to receive superior terms.
The As-Repaired comparables in the area ranged from just shy of $1 Million to $1.9 Million depending on square footage and bed/bath count. Our borrower’s project planned for 2 condo units – Unit 1 meeting the $1 Million comps and Unit 2 meeting the $2 Million comps.
Renovations
Because the property began as an empty lot, our borrower had some flexibility in the design aspect of the condo building. But with many urban infill projects, the existing buildings to the left and right present a set of requirements and building practices that a standalone new construction project does not have to adhere to. The total renovation budget was $810,000 which was included in their loan.
The condo building features 2 units, a smaller unit containing the basement and first floor, and a larger second unit containing the 2nd and 3rd floor as well as a rooftop patio. This is a common unit mix for small condo building in Washington, DC with no shortage of comps available.
Final Product
Our borrower’s design choices are not only impressive and stylish, but also strategically targeted toward the higher-end of the market in order to achieve the highest ARV supported by comps. With a dramatic open concept floorplan, modern yet comfortable design, and luxury materials used throughout, these condo units are both beautiful and profitable final products.