A Neighborhood in Transition in Alexandria City......

Individuals familiar with Alexandria City will know that Del Rayis a highly sought after area. Directly north of Del Ray there is a series of neighborhoods sandwiched between Del Ray and the business district known here as Crystal City. These neighborhoods inlcude St Elmo, Lynhaven, Hume Springs, and Beaumont. If you drive through this neighborhood you will see a mixture of older and in some cases run-down homes along side luxury townhomes and duplexes.

Change began in this area several years ago, but change continues. Driving down E Glebe Rd I noticed a brand new duplex that was just built. It looks like they are just now putting the finishing touches. Two lots over, my client purchased an older home. They have already started subdividing the lot to construct another duplex. Each unit will be around 2700 sq feet and the finish will be absolutely fabulous (at least from the plans that I was privy to). A few blocks north, there are other plans in the works to tear down two properties I just sold recently to allow for new construction. These new constructions are in addition to the renovations taking place of the 2 bedroom townhomes common in the area.

I typically direct my investor clients to this area because the return on investment is usually pretty good. The re-sale value of luxury homes is significantly higher than the value of purchasing the older run down homes. I recently sold a 2 level Luxury duplex about 2000 sq feet on E Reed Ave for $470,000 in the dead of winter. As the neighborhood continues to change, prices will go up. They have to since these areas are sandwhiched in between two highly priced areas. There is even talk of adding a metro stop at Potomac Yards (although that still would be many years away).

Bottom line: if you are looking to buy a home in an area that over time you can build some decent equity. This is it. Prices are not quite as high as Del Ray or Old Town Alexandria, but with time they will creep up close to that level as the neighborhood continues to change.