Good Deal or Not? Preposterious Edition


The flier says: “LOCATION LOCATION LOCATION!!! Zoned C2A, mixed use. Business on 1 level and live/rent out others. Blocks from Howard University, Petworth metro, Columbia Heights metro, a lot of upcoming retails everywhere. Hurry hurry hurry. .. .make an offer!!! Also for lease $3,500/month.” More details found here. The location is 2915 Georgia Ave and the asking price is $549,999. I think that may be the most insane asking price I’ve ever encountered for a package like this. Would a “mixed use” zoning increase the value substantially? Is this asking price pure fantasy?

8 Comment

  • Didn’t you read the part about “a lot of upcoming retails everywhere”? I don’t think I’ve seen any other properties near “retails.” I wonder if it also has Internets.

  • i loves retails. but that price is absurd. its about a block away from my house. and its next to a vacant pharmacy with bullet hole in the window. quelle glamour!

  • commercial zoning does raise the value. but still over priced.

  • Yes, C2A zoning allows you to put up to 6 stories on the site so that would increase the value a lot. The fact that its a 2 story building now is only part of the deal. One of the reasons values in Col Hgts jumped so much in 2003 is because the zoning changed from R2 to R4, meaning you can divide 1 townhouse into up to 4 units.

  • Pricey, yes. I’d love to see a pub go in there! It’d be 600 feet from my front door!
    Oh, let’s not start that discussion again.

  • For purely residential, the rule of thumb I’ve heard is that things are out of whack if the sale price is greater than 100 times the monthly rental value. To be sure, many properties in the area are now selling for more than 100 times their prospective rental income, but that may simply indicate that rental prices are too low, or that sale prices are too high. Anyway, I rarely see a single advert where the seller puts a price to both options. In this instance, if the sale price is bad than it could well mean the rental price is good. So: rent!

  • Mark, I’ve actually heard that price should be 150x monthly rent, and this property is actually in line with that. That said, the rent and the sale price could both be too high. I have seen places listed for sale at the same time in DC (seems more common with condos), and sometimes the price is 200x the rent, a clear sign that the price is too high.

  • I agree it’s a high price but hard to find good value commercial spaces to buy around the neighborhood. Remember when someone on the CH forum was trying to buy a building to start up a chocolate shop?

    Having lived right next to GA Ave for 1 1/2 yrs I think I am seeing signs of change. The Spruills painted two of their businesses; you have the dentist expanding and renovating a nice 2-story office building; “Sydney on the Avenue” and the secret condo is being built at the corner of Kenyon and GA. I think that things may be looking a little more lively.

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