Deal Close
August 17, 2026
Type
Multifamily, 16 units
Price
$2,600,000
Michael Murray
Mid-Atlantic Multifamily Team
Executive Summary
The owner had run personal costs through the property for years, leaving a trailing-12-month financial picture that understated true NOI by roughly half of what he believed the asset was worth.
Greysteel built the case with comparable operating expense data from similar-vintage product across the DC metro, then leaned on Gaithersburg’s rent-control exemption to generate 15 tours and eight competitive offers.
The Challenge
The seller wanted to price close to double his reported NOI, a number his own financials didn’t support on their face, requiring Greysteel to substantiate a materially higher pro forma NOI to skeptical buyers using outside data rather than the seller’s own books.
The Solution
Greysteel assembled comparable operating expense data for similar-vintage product in the broader DC- Maryland-Virginia market to demonstrate what a normalized expense structure should look like, then marketed the asset around its rent-control-exempt status — a genuine draw for buyers used to restricted DC and Montgomery County product.
Results
- $2,600,000 sale price, approximately a 6.8% cap rate on pro forma NOI
- 15 tours and 8 competitive offers generated despite a misleading trailing financial picture
- No retrades, closing roughly 45 days after Montgomery County’s right-of-first-refusal period concluded
- Buyer identified an opportunity to extend a DC-area portfolio strategy into a stronger-fundamentals
submarket
“Greysteel generated approximately 15 tours and eight competitive offers by highlighting the property’s rent- control exemption and value-add potential. The asset ultimately traded at approximately a 6.8% cap rate on pro forma NOI, with no retrades and a smooth closing following the right-of-first-refusal period.” — Michael Murray, Greysteel Lead Deal Contact, Mid-Atlantic Multifamily Team
Greysteel Advisory Expertise
Greysteel is a commercial real estate advisory firm specializing in investment sales and debt and structured finance, serving private investors, middle-market operators, and institutional clients nationwide.
The firm provides sector-focused advisory across multifamily, healthcare, and affordable housing and other commercial real estate asset classes, delivering market intelligence, capital markets expertise, and disciplined execution.
