Massive Anacostia Apartment Complex Sells Out Of Bankruptcy For $59M
A 674-unit apartment complex in D.C.'s Ward 8 that was court-ordered to refund tenants after it was found to contain unsafe and unsanitary living conditions has sold out of bankruptcy.
Clear Investment Group purchased Marbury Plaza, a property built in 1968, for $58.8M on the last day of 2024. The nine-building property houses about 2,500 residents, according to court documents.
Marcus & Millichap’s Zupancic Group, which represented the seller, announced the deal on LinkedIn Thursday. The team was hired by the owner to market the property at 2300 Good Hope Road SE in Anacostia when it filed for Chapter 11 bankruptcy protection in the summer of 2023.
Husband and wife Anthony and Helen Pilavas of New York purchased the property for $55M in 2015.
Six years later, the District sued the ownership entity, MP PPH LLC, for “a minefield of housing code violations” that endangers the lives and health of tenants” and for “unlawfully” discriminating against tenants, according to D.C. Attorney General Brian Schwalb. The result was an agreement by the ownership entity to address issues, including mold, flooding, insect and rodent infestations, and failed plumbing and electrical systems.
When the landlord didn't make those adjustments on time, the Superior Court held it contempt in April 2023, mandating it give tenants a 50% retroactive rent abatement. Four months later, it filed for bankruptcy, stating in legal filings that the court order caused it financial hardship, WJLA reported.
Clear Investment Group specializes in acquiring and revamping larger multifamily properties under distress. Marbury Plaza is the Chicago-based company’s first acquisition in the D.C. area.
The company’s founder and CEO, Amy Rubenstein, told Bisnow that Marbury Plaza presented a good opportunity to launch into D.C. because it was large enough to justify the expansion into a new city and fit the scale of distress it targets.
“We’re not really light-value-add people,” she said. “We really look for some extreme distress from a management standpoint, something where we can really make a difference.”
Rubenstein said Clear plans to improve the property by working on communication with tenants, maintenance and amenity upgrades, adding a gym and making sure the building is secure, including ensuring everybody who lives there is actually a resident.
The firm is also focused on getting the vacant units up and running. Clear estimates the property is about 80% leased.
The revamp of the property is estimated to cost between $6M and $12M, Rubenstein said.
“The building is not in terrible condition, but there's still a lot to do,” Rubenstein said.
Marty Zupancic, a senior vice president at Marcus & Millichap and head of the Zupancic group, said the 1.2M SF property is the second-largest multifamily property by square footage in the District and was the city’s largest multifamily property to sell in 2024.
He said the conditions around marketing the sale were difficult given the higher interest rate environment that led to a tight debt market and a branding perception of D.C. — including regulatory overreach, concerns surrounding crime and retailers closing.
“So I would just say that that hampered efforts, as far as the amount of interest,” he said.
“It's probably the most satisfying deal that I've ever done, because it impacted so many people in a positive way, as far as getting it closed, even though it was very challenging to do so,” he added.
