Union Market Apartment Building Sold At Auction For $38.3M
A 110-unit apartment building that delivered last year a block away from Union Market sold at a foreclosure auction Thursday for $38.3M.
Four parties competed for the 400 Florida Ave. NE property at Alex Cooper Auctioneers, with bidding starting at $30M. The winning bidder was Silver Spring-based HH Fund, seller Srinivas Chavali told Bisnow.
HH Fund didn't respond to a request for comment by the time of publication. The owner and operator, founded in 2015, owns 15 properties across seven states, according to its website.
Chavali purchased the nonperforming loan from the initial lender, Bethesda-based EagleBank, in January, according to documents filed with the D.C. Recorder of Deeds. He then foreclosed on the borrower, New York-based Ranger Properties, and scheduled the auction.
A local investor, Chavali makes a business out of buying and selling nonperforming loans. He told Bisnow he plans to take the profit and reinvest it into another opportunistic investment.
Ranger Properties developed The Lanes at Union Market building with a $33.7M construction loan it received in 2019 from EagleBank. The loan increased to $39.5M in 2020, per deed records.
HH Fund specializes in student housing, according to its website. Chavali said the building was designed with co-living spaces, and he said it is about 60% occupied by Howard University students. The occupancy of the residential portion was 89% at the end of March, according to Alex Cooper.
CBRE’s multifamily team, led by Martha Hastings and Michael Muldowney, marketed the property and procured the buyer.
Another recent apartment development in the NoMa submarket is headed to a foreclosure sale this summer, Bisnow reported earlier this month. UIP’s 99-unit Tribeca NoMa, which delivered in 2021, is set to be auctioned off at Alex Cooper on June 20.
