Washington DC
Together with our strategic partner, JIDI provided a unique investment opportunity for our accredited investors with capital gains in 2021 to invest in a ground-up residential and mixed-use property in Washington D.C.
Columbus, OH
Located in the River South District of Columbus, Ohio, this project presents an exciting investment opportunity to participate in the acquisition, development, and construction phase of an exceptional downtown project. White Chapel Apartments is a five-story, 28,000 sqft, 39-unit residential multifamily apartment building for rent (one/two bed and bath), plus a three-story triplex building (three 654 sqft one bed/bath units) for rent, and a 1,120 sqft single family house. Project completion is expected for 4th Quarter 2024 with leasing and stabilization to begin in early 2025. This is a ten-year investment but investors may begin seeing cash flowing returns upon stabilization in Year 3/4.
Tax incentives on the investment include: deferred tax until tax year 2026; bonus depreciation (no recapture tax); and no capital gains tax on liquidated profits (federal and most states). The state of Ohio also provides a 10% tax credit that can be used to offset Ohio income taxes. If the investor is not a resident of Ohio or has not earned income in the state of Ohio, this tax credit can be sold with the investor receiving the fair market value of the tax credit as a one-time payment.
Developer: Bianchi Development Company
Wilmington, NC and Greenville, SC
This opportunity presents JIDI an investment in two separate apartment complexes with the same Sponsor. The first property (Deerbrook) is located in Wilmington, NC. The second property (Chimneys) is located in Taylors, SC (inside of Greenville County) & less than 8 miles from the city of Greenville. These properties will be purchased to modernize, gain efficiency & resell allowing for investment diversification through two separate multi-unit assets. The investment will include quarterly cashflow & well positioned investor returns through sales of both properties. Total investment period is projected between two & five years but targeting three years.
Sponsor: Cohen Investment Group (CIG)
Deerbrook:
Chimney:
A small renovation of a Single-Family Rowhome in a well established and sought out neighborhood of NW Washington DC with a 3-5 minute walk to the Shaw-Howard University Metro Station and Logan Circle. Walk Score ranks this location at a 96 out of 100 for a “walker’s paradise” and 99 out of 100 for a “biker’s paradise.” Several restaurants, amenities and shopping very close by.
Our investment partner plans to conduct a full renovation of the 3-level property with rehab and upgrades to the kitchen, bathrooms, basement, flooring, bedrooms and common areas. We will add a half bathroom on the main level to make the home a 3 bedroom 2.5 bathroom property. Expected completion is for August 2019.
The Columbia Heights neighborhood is a culturally diverse neighborhood in northwest Washington DC. It is a major night life area with many bars and restaurants along the primary commercial district of the 18th Street Corridor. Much of the neighborhood is composed of 19th and early 20th century row houses. The property is blocks away from 18th Street (the main commercial district of Adams Morgan) and very close to the Harris Teeter grocery store. This property was given a Walkscore of 97 out of 100 (Walker’s Paradise). This property is conveniently located within walking distance of Dupont Circle, Adams Morgan, the “U” Street Corridor and 14th Street. These four neighborhoods continue to be at the center of DC’s most desirable areas for young professionals and urban condo buyers. The property was purchased in 2015 and completed construction in Spring 2018. The approved plans called for 20 condo units and under ground parking spaces. Project closeout was in November 2018 with investors realizing a 23.3% project return on investment (15.3% annualized).
Ontario Street was planned as a 14 unit condominium development and construction project in the Adams Morgan neighborhood of DC NW. The project closed in early 2017 and shortly thereafter it was pursued by a local area developer for purchase, development, construction and sale. Both JIDI and our DC partner agreed to the sale. Returns for the project over the 7 month duration eclipsed 11.8% (20+% annualized).
Washington, DC NE
SE Washington DC is located south of East Capitol Street and east of South Capitol Street. The quadrant includes Capitol Hill, the Supreme Court, the Library of Congress, the Washington Navy Yard, the Marine Barracks, Fort Dupont Park, the Anacostia Waterfront, Eastern Market, St. Elizabeths Hospital, RFK Stadium, Nationals Park, the Frederick Douglass National Historic Site and the Anacostia Community Museum. SE Washington DC has a mixed population with politicians and government employees, journalists, professionals, and students residing in the Capitol Hill neighborhood. The area is undergoing a massive transformation and is one of the city’s fastest-growing in terms of employment, entertainment and residential growth.
This property is located in the Marshall Heights area of southeast Washington DC. The property is 16,000 square feet & was developed for single-family residential use to build 8 townhome units at 2-3 bedroom and 2-3 bath, 2400 square feet each with two parking spaces behind each unit. This property is located less than a half mile from the Benning Road metro which is on both the Blue and Silver lines just two stops from Eastern Market in Capitol Hill. The project concluded in September 2017 with the sale of the land prior to construction of the townhomes. JIDI earned a return of 40% over the project duration (32% annualized).
Washington, DC NE
One of the newest investments in our portfolio, this 180+ unit multi-family project is nestled in the heart of the H-Street Corridor of Washington, DC NE. The Property is closely situated to several retail and dining options, entertainment and nightlife amenities, national landmarks and thousands of employers. The property is well positioned to capitalize on one of the nation’s strongest economic and residential markets.
JIDI invested in the purchase of one of two parcels of land and remained in the project until the land was entitled with proper zoning. Following the entitlement process JIDI was refinanced by another private equity company who will be taking the project to it’s final completion. JIDI investment plus proceeds were recapitalized at a return of 50.7% over the project duration (over 30% annualized).
Hilton Head Island, SC
Property is located in Oldfield Plantation outside Hilton Head Island, SC. Property was purchased in September 2016 and sold February 2017 for a net return of 40% (96% annualized)
Washington, DC NW
This highly successful project converted two adjacent row homes into a 20 unit luxury condo building with underground parking. Property is located in the Columbia Heights neighborhood of Northwest Washington DC, within walking distance to the Columbia Heights metro and the DC USA mall and is closely situated to Adams Morgan, downtown Columbia Heights, and the U Street Corridor.
These three neighborhoods continue to be at the center of DC’s hottest development areas. It is a highly desirable area for young professionals and first time home buyers. The project presold 16 of 20 units and closeout for JID was in late July 2016. Total JIDI returns were 85% on the investment (32% annualized).