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.