Rosa Investments

1. Rosa Investments 136 Adams Street

2. Property – 136 Adams St NW

3. Opportunity • The proposed business plan is to acquire single family homes in the D.C. neighborhood of Bloomingdale that have not maximized their development potential. • The aim is to build out these properties by adding a third floor and converting them from single family dwellings (SFDs) to two 2 bedroom 2 bathroom high end condos as is permitted under R-4 zoning regulations. Once the conversion is complete, both of the condo units will be sold. • The real opportunity in investing in these properties is that there is a way to create value not only by improving the existing property but by adding square footage to the property that was not there before. • This model involves the creation of additional square footage and the creation of two new products to be sold. A look at sales in the area reveals that residents tend to be less concerned with buying SFDs than they are with buying high-end, convenient living situations, i.e. condo living. Bloomingdale residents are willing to pay a premium for luxury and low maintenance. This means that an SFD with a finished third floor and rooftop deck is less valuable than a 2-unit condominium with the same finished third floor and rooftop deck.

4. Market Analysis • The proposed site is on the corner of Adams St NW and Flagler St NW in the Bloomingdale neighborhood of Washington DC. The Bloomingdale neighborhood is located two miles north of the US Capitol and is bordered by, LeDroit Park to the west, Shaw to the southwest, Eckington to the east, and Edgewood to the northeast. Bloomingdale is a mature community that dates back to the early 1900’s. The neighborhood is comprised mostly of residential row houses with small corner retail shops. • With only a 10-15 minute walk you can access retail, nightlife, education and much more. Residents benefit from walkable access to the green/yellow line metro station or the popular DC nightlife of the U Street Corridor. The proposed McMillian development project, located adjacent to the Bloomingdale neighborhood, will redevelop the old McMillian Parka and filtration site and the McMillian reservoir. This site is a holdover from the historically industrial oriented community. The new plans will blend mixed-use office and apartment buildings with ground-floor retail, single-family townhomes, and open space to augment and enhance the surrounding neighborhoods once completed. • Currently, Bloomindale is undergoing a tremendous change. Massive redevelopment has taken place in Petworth to the north and Shaw to the South to the benefit of Bloomingdale. The neighborhood has become a prime target of rehabbers who are gutting the early 1900’s facade while modernizing internal development. This neighborhood is of particular interest according to McWilliams Ballard 2013 condo overview. Condos in the district have seen sales jump 43%, with average days on market falling to 49 from 61 and price increases 3% year over year 2012 to 2013.