GDoN Revisited by Hipchickindc – 1801 13th St NW

Hipchickindc is a licensed real estate broker. Her latest business venture can be seen here. Unless specifically noted, neither she nor the company that she is affiliated with represented any of the parties or were directly involved in the transaction reported below. Unless otherwise noted, the source of information is Metropolitan Regional Information Systems (MRIS), which is the local multiple listing system. Information is deemed reliable but not guaranteed.

Featured Property: 1801 13th St NW
Legal Subdivision: Old City #2
Advertised Subdivision per Listing: Old City #2
Original List Price 1st Listing: $599,000.
List Price at Contract: $599,000.
List Date 1st Listing: 10/27/2011
Days on Market: 11
Settled Sales Price: $950,000.
Settlement Date: 12/16/2011
Seller Subsidy: $0.
Bank Owned?: No Short Sale? No
Type Of Financing: Non-contingent on financing
Original (not offically a) GDoN post is: here.
The listing can be seen: here.

Per the disclaimer at the very top of this post, I am hereby disclosing that the listing agent, Jason Martin, is a colleague affiliated with Keller Williams Capital Properties. Jason was kind enough to share that the property attracted over twenty offers within a short time of being put on the market. Pam Wye, with TTR Sothebys represented the purchaser. I wasn’t able to reach Pam before the holidays for any comment on the buyer’s plans, so hopefully she’ll pop in to comment.

Rather than a typical house or condo sale, this property was marketed as a multi-unit building with two apartments plus a church on the first level. Many commenters on the original post stopped in to say nice things about the long time owner, Pastor Sutton. Thanks to commenter Joel for posting this link to photos of a worship service at the church.

Continues after the jump.

In case anybody hadn’t noticed already, developers are out in full force in DC. After a decade of substantial re-building downtown, raw product for renovation, including multi-unit properties of all sizes, vacant land, and individual houses, is in very short supply. While it certainly does not happen in every case, there were plenty of sales of multi-units buildings that sold above list price in 2011.

As a commenter mentioned, there are limits to how a building can be divided up or added to based upon zoning requirements. Value to an investor really comes down to the number or units that can be sold as a final product, with carrying and construction costs factored in. Although investors can typically offer non-contingent or cash contracts, an end user (either commercial or owner occupant) may be able to offer a better price to the seller since the value is in the use and not as a for-profit situation. Given that the financing of these properties can be tricky, however, sellers sometimes opt for the lesser complications of cash over financing, even if it means a lower sales price.

11 Comment

  • Almost double the list price? Do I have that right? I can see listing low to generate competition but this price had to be unexpected, right?

    • No, that is the going price at that location. It was priced for multiple offers

      • Right but 400k below what they were expecting. That seems a bit asbsurd on the multiple offer front to price this at 599. I hate that practice.

        • Buyers hate it, sellers love it because it means the place is off the market instantly and they don’t have to deal with months of being on the market and they still get full market value.

          I am sure when you sell your place, you will do everything in your power, use every trick in the book to sell it as quick as you can, for as much as you can.

          • Its not that genius. It’s a gamble when there is a strange market like there is now. What happens if you price it really low, but it doesn’t go off the market quickly for one reason or another? Then it looks like ouve priced your place above market value and scare away potential buyers because they’re thinking the roof must have collapsed and there are termites in the second floor rafters.

  • I’m surprised it sold for less than a mil. Seems like a fabulous building. I hope that we’ll get to see photos after the reno.

  • This week the developer’s work crew has been busy removing various interior fitting and debris from the building. The amount of material they have removed has been quite impressive. I gather this property is going to receive a massive interior renovation.

  • I live down the block from this and predicted it would go for close to a million in the OP.

    “I think this will go for closer to a million. I don’t think people recognize how huge this place is. It could easily be converted into 3 large two bedroom condos or a mixture of 1 bedroom and 2 bedrooms.”

    I don’t think the picture gives justice to the size of this place. It looks like even on the third floor there are 10 foot high ceilings.

  • I don’t see how this can be profitable. They cannot do three units by right as the CoO only allows for two units. They can probably get three by going to BZA, which add more cost and uncertainty and carrying cost.

    If they are allowed to do three, I suppose each can sell for $600/sf if the finishes are very good, they end up with probably 1.6 million for approximately 2700sf (note that condo measures the interior only). If they dig out the basement, they can probably another 150k more, which makes it 1.75mil. The construction cost will be around 140-150/sf (based on interior sf only), which will make it around 500k. The recordation tax and conversion tax are about 7.5% of the total sale price, which makes it at approximately 130k. Finance is approximately 35k. Other cost 60k (architectural, permits, insurance, legal etc). Commission will be 5 percent, which is about 90k. so the total cost will be 1.78 million. After the net lossi about 30k after about 6 months work.

Comments are closed.