📊 Real Estate Investment Proforma
Property: 1375 Bryant Street NE, Washington, D.C. 20018
Type: 4-Unit Multifamily (RA-1 zoning)
Prepared by: Ken Bossard, MBA
1. Property Summary
- Year Built: 1941
- Current Condition: Vacant, boarded, with green D.C. vacant sticker. Current on taxes.
- Square Footage: 3,140 SF (4 units, 1BR/1BA each; redevelopment potential to 2BR/1BA each).
- Zoning: RA-1 (low- to moderate-density apartments; potential for mixed-use with conditional approvals).
- Neighborhood: Brookland/Rhode Island Metro submarket – strong rental demand, moderate condo absorption.
2. Comparable Market Analysis
| Property | Units | Sq. Ft. | Status | Price | PPSF |
|---|---|---|---|---|---|
| B59 | 4×1BR | 3,200 | Pending | $755,000 | $236 |
| B24 | 4×1BR | 2,720 | For Sale | $775,000 | $285 |
| B76 | 4×2BR | 2,640 | For Sale | $1,015,000 | $384 |
| B56 | 4×2BR | 3,340 | For Sale | $999,999 | $299 |
| D41 | 2+2 Units | 2,600 | For Sale | $876,000 | $337 |
Average PPSF (Active & Pending): $306.59
Projected After-Improved Value (ARV):
3,140 SF × $306.59 = $962,692
3. Acquisition & Rehab Costs
- Purchase Price (Target Offer): $491,885
- Rehab Budget: $260,000 (conversion to 4×2BR/1BA units)
- Closing Costs / Carrying: $25,000 (est.)
- Total Project Cost: ≈ $776,885
4. Financing Assumptions (Hard Money – Fix & Flip)
- Loan-to-Cost (LTC): 90%
- Total Loan Amount: $692,600 (Purchase $442,600 + Rehab $260,000)
- Cash to Close: $68,593
- Loan Terms: 12.24% Interest-Only, 1 Year (extendable)
- Monthly Payment: $4,515
- Exit Strategy: Sale at ARV $962,692
5. Profitability – Fix & Flip
- Sale Price (ARV): $962,692
- Less Project Cost: $776,885
- Gross Profit (Pre-Financing): $185,807
- Less Debt Service (12 mo.): $54,178
- Net Profit (Pre-Tax): ≈ $131,629
- ROI (Cash Invested): ≈ 192%
6. Alternative Strategies
A. Condominium Conversion
- Upside: Potential for $1.05M+ sell-out if positioned as 4 affordable luxury units.
- Risks: Condo market in 2025 is slower; under-$1M listings face longer DOM and concessions. Recent Condo Sales are mostly 2 bedrooms: 8/12/2025 — 1 BR, 1 BA, 646 s.f. = $260,000 – 1.2 mi || 4/30/2025 — 2 BR, 1 BA, 815 s.f. = $299,900 – .03 mi (across the street) || 5/8/2025 — 2 BR, 2 BA, 784 s.f. = $375,000 – .08 mi.
- Holding Period: 18–24 months financing required.
B. Mixed-Use with Incentives
- Neighborhood Prosperity Fund: $300k–$2.7M grants for commercial/community space.
- Opportunity Zone (Tract 91.02):
- Deferral of gains until 2027.
- 10+ year hold eliminates capital gains tax.
- Potential layering with D.C. HPTF, LRSP, DOES Job Training.
- HubZone / QHTC Tenants: Preferred leasing options for federal contractors & tech firms.
C. Buy & Hold Rental
- Market rents (2BR in NE DC): $2,200–$2,500/month.
- Gross Potential Rent: $8,800–$10,000/month.
- Annualized = $105,600–$120,000.
- NOI (after 30% OPEX): ≈ $73,920–$84,000.
- Cap Rate at ARV: 7.5%–8.7%.
7. Highest & Best Use Recommendation
- Primary Path: Fix & Flip to 4×2BR rentals → Sell stabilized building at ARV.
- Alternative: Condo conversion if financing supports 18–24 months and investor appetite for higher absorption risk exists.
- Long-Term Hold: Attractive as rental with Opportunity Zone + LRSP overlay for subsidy-backed tenants.
FIX AND FLIP ANALYSIS
SENSITIVITY ANALYSIS
✅ Conclusion:
This property represents a strong value-add multifamily play with multiple exit strategies. The base fix-and-flip model produces a 192% ROI on cash invested in ~12 months. Risk-adjusted returns improve further if Opportunity Zone incentives and Neighborhood Prosperity Fund grants are leveraged for a mixed-use conversion.
