A 6-year-old apartment building near Northeast D.C.’s H Street corridor has a new owner after developer Habte Sequar was foreclosed on and filed for bankruptcy

A partnership led by Ernst Equities paid $6.8M to acquire the 49-unit Havana apartment building at 1219 K St. NE, Ernst Equities Managing Partner Felipe Ernst told Bisnow.

Ernst partnered with Earning Housing Development Co. and MCN Build on the acquisition, and the team received a $5.7M loan from Industrial Bank along with the deal, according to documents filed with the D.C. Recorder of Deeds. The sale pencils out to $139K per unit, but it doesn’t include the land, as the building is owned through a ground lease.

The five-story property was less than 50% occupied at the time of the sale, and Ernst said it had been poorly managed. He said his team plans to invest $1M to renovate it.

“We’re really trying to rectify the dire condition the building’s in right now and restore the potential of this 49-unit new construction in an incredibly booming neighborhood,” Ernst said.

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