Located in the burgeoning Logan Circle neighborhood at a short but comfortable distance from the heart of the downtown area, 1441 Rhode Island is a class A structure rising up nine stories high on a half-acre parcel between 14th and 15th streets. In addition to its residential space, the 150,000-sf building features a state-of-the-art fitness center, a business center and a three-level subterranean parking facility capable of accommodating 132 vehicles.

Terms of the deal have not been disclosed, however, District tax records list the property's proposed 2005 assessed value at $37 million. With the multifamily market being as hot as it is--boasting a vacancy rate of just 2.1% for class A high-rises, according to Delta Associates' Year-End 2003 Apartment and Condo Report--the building likely commanded a significant amount more than that assessed value. A similar District property, a 211-unit building developed in 2001, sold in the third quarter of 2003 for about $251,000 per-unit, or $53 million.

The new owners, capitalizing on the even hotter condominium market in the District, have decided to convert the property from apartments to condominiums. "Low mortgage interest rates, rising single-family home prices, empty nesters in the baby-boomer demographic, and growing interest in urban living combined to generate an unprecedented demand for condo units," Delta Associates reports. "These factors led to extraordinary sales figures in 2003 and to a rapidly expanding pipeline of new units hitting the market in coming months." The converted condominiums are expected to be ready for occupancy this fall.