WASHINGTON, DC-Urban Investment Partners has closed on an apartment building in DC’s Columbia Heights neighborhood. The property, located at 1346 Park Rd., NW, traded for $3.7 million from an entity controlled by Someck Development and Northridge Capital. This is UIP’s sixth acquisition of the year.

It is also among a growing number of small apartment trades in the District in up-and-coming neighborhoods that mark a desire to leverage the city’s robust multifamily fundamentals. Georgia Towns, a 24-unit multifamily property five blocks from the Takoma Metro Station in the District, just traded for $2.7 million, or $113,541 per unit. Brokered by Marcus & Millichap’s Ari Firoozabadi, the property will be renovated and repositioned by its new owner.

Firoozabadi also brokered the sale of La Reine Apartments, a 95-unit, mid-rise apartment building in the northwest Washington, DC neighborhood of Chevy Chase—a more established neighborhood. It traded for $17.1 million, or $180,263 per unit and $245 per square foot.

In September UIP acquired the Meridian Hill in nearby Adams Morgan for $4.2 million.

Condos are also a viable investment for firms now—and sometimes unavoidable, given the strong tenants’ rights in the District. Here too, UIP is a player—it recently launched sales of the WY18 Condos at 1801 and 1811 Wyoming Ave., NW, which it renovated after acquiring in 2010. Also, Federal Capital Partners acquired a development site in Adams Morgan to build 40 condos.

However, while fundamentals for this asset class are strong, there are signs of worrisome trends on the horizon. Job creation is slowing here, with the Washington area dropping from the top job gainer in the nation to the eleventh slot on the list. Also, while class A apartment rents rose 3.6% over the past 12 months, much of that growth was due to declining concessions.

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Erika Morphy

Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.