WASHINGTON, DC—In a deal that points to the intense investment interest in residential real estate in the DC area and particularly in the Glover Park neighborhood, Madison Investments has purchased a boutique apartment property here, with plans to convert it into a larger condominium.

Madison Investments, which is developing several other residential projects in Capitol Hill and in the 14th Street NW corridor, acquired 2621 39th St. NW, a two-story, 3,500-square-foot residential building built in 1940. Madison intends to convert the current layout to four two-bedroom condo units and to add an additional floor above and below the two-story building. Marty Zupancic and Christian Barreiro, multifamily specialists with Marcus & Millichap's DC office listed the property. The property was sold by four separate owners to Madison Investments for $1.1 million or $275,000 per unit.

"The fact that we received double-digit offers after conducting dozens of tours is not only a testament to the current strength of the DC market, but also shows that investors are hungry to acquire assets in historically stable neighborhoods like Glover Park," Barreiro says.