1-plus acre Southern Avenue SE property sells for $5M. Senior housing planned.

A partnership of Gilbane Development Co. and Dantes Partners has acquired a pair of adjacent lots in D.C., on its border with Prince George’s County, where it plans to build 152 units of affordable senior housing on the site of a shuttered Chinese restaurant.

Ian Ruel, vice president of investments with The Feldman Group of Marcus & Millichap (NYSE: MMI), tells the Washington Business Journal that the two lots, 306 Southern Ave. SE and 4656 Livingston Road SE, sold for $5.15 million — or about 17 times what seller YLC Inc., owned by Mike Cheung, paid for them 18 years ago.

It appears this will be a 1031 exchange, a program under which Cheung can reinvest the proceeds in a new property and defer all capital gains taxes. Ruel said Cheung “has identified multiple, cash flowing investment properties to exchange into.”

The lots, totaling slightly more than 1 acre, are currently only improved with the shuttered China Southern Carry-Out. A raze permit application for that building…

Read the full story from the Washington Business Journal.

More from WTOP

Log in to your WTOP account for notifications and alerts customized for you.

Sign up