A Unique Property in a Vibrant Neighborhood

* Residential conversion opportunity

* An incredible—and rare—22 parking spaces

* $225K+ in 2024 gross income

* Upside with 3rd floor vacancy

This unique property in the  heart of Alexandria’s vibrant and popular Del Ray neighborhood offers an opportunity business owners and investors, and residential buyers, as well as featuring a strong value-add component. And it’s offered at a below-market rate of $302/SF—vs. sold comps averaging $377/SF and including a recent sale across the street at $387/SF.

For investors, lease up the third floor either as is for professional office, or target for more retail-like uses allowed under CL zoning, which could generate a higher rent than straight office.

For residential buyers looking for an awesome location with a huge wow factor,  this is it, once you convert the 3rd floor to your primary residence and host some pretty incredible parties on the rooftop deck. Currently built out as office space, it's perfect for conversion to luxury residence, or even a live-work space. Plus you’ll benefit from $225,000+ in gross annual income from existing tenants, each of which signed lease renewals for five years, effective 1/1/24 through 12/31/28. 

Residential Conversion

Among the value-add scenarios is to convert the third floor to residential, specifically four 1-BR apartments, that could command up to $2,350 per unit, based on a recent nearby lease comp.

Looking ahead, when lease options eventually expire, the second floor could also be converted to residential under the Mt. Vernon Overlay plan, for a total of 8 1-BR units, and the ground floor could be converted to other uses allowed under existing zoning, including restaurant use, yielding better returns. In the future, another value-add option is to convert the building to condo, and then sell residential units on the 2nd and 3rd floors individually.

Rooftop

Rooftop decks are fast becoming a major value-added feature in urban development, and here’s an opportunity to maximize this space too, accessible from a 3rd floor staircase. Currently improved with a 300 +/- SF office penthouse,  its outstanding view of the neighborhood and surrounding area would be attractive to any prospective 3rd-floor tenant, whether residential or commercial.

A big plus to a new owner are the 22 parking spaces on the two RB lots. Two recent sold comps had zero off-street parking. 

The building includes a loading dock and bay used by the Post Office and a small below-grade utility and boiler room. Second and third-floor tenants can access their space via staircase or elevator at the left-side front entrance. A fire escape staircase is at the rear of the building.

Recent improvements include a complete boiler rebuild (2020) and a $30K carpet and paint upgrade to the second floor. (2023).

NOTE: Property is not being sold on an NOI basis. Pro forma gross with lease-up of 3rd floor estimated at $325,000 +/-. Call agent for projected 2024 net operating income.

3rd Floor Available for Owner-Occupant or to Lease

Owner has intentionally not leased the third floor in the event a buyer wants to occupy the space for its own business or residence, with tenant income partially offsetting the mortgage. For an investor, additional income can be generated to lease this floor as is (shows well: $230K upgrade in 2008), or convert to apartments for residential income.

Off-Street Parking for Tenants and Visitors

Parking is a scarce—and valuable—commodity in Del Ray and most of Alexandria City. The parking on the residential lots at 115 and 117 E. Howell Ave. was approved by City Council via a special use permit in 1987, on the condition that it only be used by tenants or visitors of 1908 Mt. Vernon Ave. A new owner would have to apply for a Special Use Permit for change in ownership to continue the use, as did the current owner. Tenants USPS and iData are provided parking in these lots on terms as specified in their leases.