Quasar has acquired an owner-distressed multifamily portfolio of 72 units located at the intersection of North Capitol Street and Hawaii Avenue in Northeast Washington, D.C. The portfolio included: 65 Hawaii Ave. NE, 69 Hawaii Ave. NE, 73 Hawaii Ave. NE, 77 Hawaii Ave. NE, 81 Hawaii Ave. NE, 85 Hawaii Ave. NE, 97 Hawaii Ave. NE, 66 Webster Ave. NE and 98 Webster Ave NE.
“We are incredibly excited to complete this deal and acquire these assets for pennies on the dollar,” said Kenneth Brown, CEO and chairman of QUASAR. “Our investment thesis focuses on identifying properties that have been mismanaged or overlooked, particularly in a market where previous low interest rates led to a rise of poor underwriting and market participation by inexperienced operators. This acquisition aligns perfectly with our strategy, allowing us to apply our expertise and generate significant value for our investors.”
Quasar received an offer to acquire the note of the properties on September 10, 2024, and raised the necessary funds by September 16. The transaction traded for $7.37 million or an estimated $102,000 per unit. It foreclosed on the properties and took possession on December 9. The company has identified a growing trend in the market where owner-distressed assets have become increasingly available due to a combination of factors.
“We successfully raised the necessary funds within a week, demonstrating our team’s efficiency and the strong belief our investors have in our vision. Our goal is to deliver substantial value to our stakeholders,” said Phil Dawit, managing director of Quasar. “Moreover, we plan to raise additional funds to continue acquiring assets at attractive prices, capitalizing on current market conditions and our ability to identify opportunities.”
