WASHINGTON, DC - Marcus & Millichap, a leading commercial real estate brokerage firm specializing in investment sales, financing, and advisory services, announced the sale of 5320 8th Street N.W., a 38-unit, value-add multifamily property in Washington D.C., according to Brian Hosey, district manager of the firm's Washington, D.C. office.
The Zupancic Group of Marcus & Millichap brokered the sale of the asset between the seller, a United States Bankruptcy Court appointed Chapter 7 Bankruptcy Trustee for the District of Columbia, and the buyer, a local private investor who owns multiple multifamily properties in the D.C. area. The buyer plans to rehabilitate the property to make it a better place to live for current and future tenants. The asset fell into Chapter 7 Bankruptcy after previously being marketed by a local brokerage firm and subsequently under agreement with an auction house, with no sale occurring in either scenario.
Marty Zupancic, Director of National Multi-Housing Group, commented, "We are pleased to have successfully navigated this unique transaction with all parties involved. Despite the poor building conditions, bankruptcy status, and previous market exposure of the asset, we were able to achieve the best pricing possible for our client while also creating positive change for the community and surrounding neighborhood through our expertise and comprehensive marketing strategy."
"The property required significant capital expenditures, which led to the intervention of the Office of the Attorney General and subsequent installation of a court-appointed property manager and receiver. We worked with these parties, the buyer, and the multiple tenant counsels to achieve a positive result for all parties involved," added Christian Barreiro, First Vice President Investments.
The Zupancic Group completed a successful transaction at a sale price of $6,270,000 or $165,000 per unit. The marketing process generated 13 total offers through 26 physical tours of the property. John Slowinski, Associate, commented, "Our team approached this from many different angles. We devised a multi-dimensional marketing strategy, including a virtual tour and promotional video that received over 1,000 views from local and national investors, a targeted call campaign using our comprehensive proprietary database of multifamily owners and investors, and Marcus & Millichap's nationwide network of over 2000 agents throughout 80 offices." The Zupancic Group's cutting-edge marketing systems fully broadcasted the opportunity, helping to ensure every potential investor saw the deal.
Christian Barreiro added, "This transaction expands the track record that we have developed in the upper Northwest D.C. submarkets. Our team is regularly navigating complex sale situations in these neighborhoods, and we have control of real-time market data that allows us to provide the expertise necessary to help our clients achieve clarity in a constantly changing and dynamic market."
This transaction was yet another example in recent years of The Zupancic Group of Marcus & Millichap using their Bankruptcy sale expertise to navigate complex transactions and consistently push the standards of the market. Marty Zupancic is one of the most active multifamily advisors in the area leading a team of specialists that have developed a mastery of the Washington Metropolitan market. He has accumulated an extensive track record of executing assignments for a diverse client base through his collaboration with clients, extensive market knowledge, analytical approach, attention to detail, and unparalleled integrity. According to Marty Zupancic, "Our team has helped facilitate over $125 million in Bankruptcy Sales alone, and that number continues to grow monthly. Our activity and knowledge of the market are exemplified in all other transactions in the market."
About Marcus & Millichap (NYSE: MMI): Marcus & Millichap is the nation's largest brokerage firm focused exclusively on investment sales. It is based on a simple premise: matching each property with the largest pool of pre-qualified investors. With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research, and advisory services. Founded in 1971, the firm closed 8,954 transactions in 2020 with a value of approximately $43 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry's most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more about the company, please visit www.MarcusMillichap.com