Washington, DC
Situation Overview:
 2400 Pennsylvania Avenue is an eight-story Washington, DC apartment building that was constructed in the 1950’s. Previously owned by an estate, the law firm which had been administering the property enlisted CRC, to sell it.
CRC, which had been managing the 107-unit property, quickly procured a buyer from its client base. The new purchaser, believing that the property had potential to generate greater income asked CRC to determine if a repositioning would yield a greater return on its investment.
Action Plan
After performing a market study and evaluation, CRC recommended repositioning the 8-story building to upgrade it from its 1950’s-era Class ‘C’ status. As the property was operating under D.C. rent control, CRC also advised the owner as to what improvements would yield the maximum profitability given the allowable increases and rent ceilings.
CRC then proceeded with the repositioning; renovating and improving the lobbies, hallways, and common areas, and refurbishing individual units as they turned over. A marketing and leasing program was employed, which included an advertising and media campaign to communicate 2400 Pennsylvania’s new identity and enhanced value, and to attract and secure the desired residents.
Results:
As a result of the repositioning, 2400 Pennsylvania was upgraded from Class ‘C’ to Class ‘B’, and its net operating income was doubled. CRC also assisted the owner in securing the financing needed for the acquisition.
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