A newly constructed 36-unit Northwest D.C multifamily building is on the market at a steep discount after being bought by its lender in a foreclosure sale.

The four-story Arbor at Takoma, 218 Cedar St. NW, is being marketed for $13.9 million by real estate brokerage Feldman Ruel. That’s well below the $21.9 million it cost the former owner to acquire and develop the property, marketing materials show.

Located a block from the Takoma Metro station, the Arbor was developed as condos by the Neighborhood Development Co., a longtime D.C. developer behind a host of mixed-income projects.

NDC lost the property, which delivered earlier this year, in a September foreclosure sale to lender Forbright Bank, which acquired it for $12.4 million. NDC announced shortly before the foreclosure sale that it would cease operations, citing “untenable” market conditions.

In addition to its residential units — 24 one-bedroom and 12 two-bedroom — the property includes four spaces totaling 8,365 square feet that could be used for retail or office. It also includes a green roof, seven garage parking spaces, bicycle parking and 15 storage units.

Marketing materials tout the property as not subject to D.C.’s Tenant Opportunity to Purchase Act (TOPA) or rent control regulations, as it’s a new piece of construction. Those provisions often dissuade multifamily investors from doing business in D.C.

A condo regime is already in place, meaning all the units could be sold separately by a purchaser if they chose to exit the investment following acquisition. But Feldman Ruel Managing Principal Josh Feldman said they’re advising potential buyers to market the Arbor as rentals because of complications in D.C. law that would slow how quickly a potential investor could offload the units.

Many investors, Feldman said, “don't want to be on the hook for something for so long after they do a deal.”

Prospective buyers could also hold the units and sell off the property's retail component. “I would not be surprised if whoever buys the property ends up doing that, especially if they just get it all leased up,” Feldman said.

Feldman said the brokerage has received a handful of offers, but he declined to say from whom.