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How a Rare 1031 Purchase of a District Apartment Building Came to Be

WASHINGTON, DC-Because the building was vacant, the 1031 buyer didn't have to deal with tenants seeking to buy the building per the Tenant Opportunity to Purchase Act.

By Erika Morphy | erikamorphy | | Updated on July 28, 2016
The Oaks The Oaks

WASHINGTON, DC-The Oaks, an eight-unit apartment building located at 1447 Oak St., NW, has traded for $2 million, or $250,000 per unit. The buyer was a local developer and the seller had been the family which had owned the property for years. The deal, brokered by Greysteel’s W. Kyle Tangney and Herbert Schwat, was a rare 1031 trade for the District. Because of the Tenant Opportunity to Purchase Act  there are few 1031 purchases of apartments, Tangney told GlobeSt.com.

There was no secret formula to how The Oaks managed to trade to a 1031 buyer  — the apartment was empty when it traded, he said — which meant there was no TOPA committee involved in the deal. The seller had renovated the property so it was ready to be rented to tenants and the buyer had snapped up the opportunity to owner a District apartment in a 1031, he said.

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