Deal Close
August 28, 2026
Type
Multifamily, 23 units
Price
$3,175,000
Michael Murray
Mid-Atlantic Multifamily Team
Executive Summary
Longfellow closed out a three-property portfolio disposition for a longtime client, a retired attorney.
The asset itself was ordinary Class B/C product, but it happened to be exempt from DC’s rent control ordinance — adistinction Greysteel priced deliberately, closing at roughly a 5.75% cap on trailing-12-month income against a market running closer to 7% for comparable rent-controlled buildings.
The Challenge
Comparable Class B/C multifamily in DC was trading in the high-6% to 7% cap rate range. Making the case for a materially tighter cap required convincing buyers the rent-control exemption was worth the premium.
The Solution
Greysteel positioned the asset around its rent-growth potential and the operational flexibility that comes with no rent cap, rather than letting it get priced against restricted comparables by default.
Results
- $3,175,000 sale price at approximately a 5.75% cap rate on T12 income
- Roughly 125 basis points tighter than prevailing cap rates on comparable rent-controlled Class B/C product
- Closed out a long-standing client’s three-property portfolio disposition
“The rent-control-exempt asset commanded a premium relative to comparable Class B/C product, closing at approximately a 5.75% cap rate on T12. Greysteel positioned the property around its stronger rent-growth potential and greater operational flexibility, helping deliver pricing well above prevailing cap rates for similar older multifamily assets.” — 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.
