31 Unit - Value-Add Opportunity 3867 Alabama Ave SE

Marcus & Millichap is pleased to exclusively present 3867-3871 Alabama Avenue SE, a 31-unit apartment building located in the thriving Fort Dupont submarket of Washington, DC. Situated on a prominent 0.43-acre corner parcel and zoned RA-1, the property features an appealing unit mix of 28 one-bedroom apartments and three two-bedroom apartments.
This 30,000 SF +/- asset presents a unique opportunity for an investor to stabilize the property immediately by implementing a Housing Voucher Provider (HCVP) leasing strategy, filling the 27 vacancies, and achieving a strong 8.34% cap rate in a submarket characterized by low vacancy rates. Additional value-add potential lies in converting the building from central metering to individual unit metering and creating additional bedrooms within the generously sized apartments, significantly enhancing the net operating income (NOI).
3867-3871 Alabama Avenue SE is ideally located in a predominantly residential neighborhood, directly adjacent to the Fairfax Village Shopping Center (37,000 SF) and across the street from Fort Davis Shopping Center (44,000 SF). The Fort Dupont submarket benefits from proximity to transformative developments, including the 350+ acre St. Elizabeths East Campus, featuring a state-of-the-art entertainment and sports arena, the 3,700-employee U.S. Coast Guard headquarters, and the consolidated home of the Department of Homeland Security.
Located “East of the River”, this Fort Dupont submarket is well known for its access to major throughfares of Suitland Parkway and 395, and the building is directly across the street from the popular 376-acre Fort Dupont Park. New development nearby includes the “Fletcher-Johnson” mixed-use project, which is only a few miles away from the subject property. This development will include 870 mixed-income residential units and 45,000 SF of retail space.
Southeast DC is currently undergoing a development boom, with over $15 billion in active and planned investments, including 5,000 residential units, one million square feet of retail, and 3.5 million square feet of office space. These extensive infrastructure and mixed-use developments further position this asset as an exceptional opportunity for long-term growth in one of Washington, DC’s most rapidly evolving submarkets.