With the federal government and the contracting industry providing steady employment, apartment investors have always seen the Washington, D.C., area as a reliable rental market.
But last year, that perception changed. The Trump administration and Elon Musk’s Department of Government Efficiency punctured that sense of security with major job and funding cuts.
Those issues took a toll as 2025 wore on.
“A combination of federal job cuts and the National Guard deployment, followed by the government shutdown, has created a lot of uncertainty in the local market,” Equity Residential CEO Mark Parrell said on the REIT’s fourth-quarter earnings call in October. “Most of the pressure is being felt in the district and in pockets of Northern Virginia.”
Still, competitive housing supply in D.C. is set to tighten in 2026, and Parrell said he sensed “in the long term, the federal government will continue to be a job engine.”
He isn’t alone in that assessment. Some investors see an opportunity to build portfolios in the Washington metro area.
Take 29th Street Capital. On Feb. 19, the Chicago-based apartment investment firm, which is focused on expanding in established, transit-oriented submarkets with durable fundamentals, announced its fourth, fifth and sixth investments in the Washington, D.C., metro area, according to a press release shared with Multifamily Dive.
Henry Moore, vice president of acquisitions for 29th Street Capital, told Multifamily Dive that 29th Street Capital takes a long-term view of the Washington, D.C., metro, and that it remains one of the most stable and diversified employment markets in the country.
“While headlines often focus on federal employment, the region’s economic base is broader than that narrative suggests,” Moore said in emailed statements. “Healthcare systems, defense contractors, education institutions, logistics, and regional headquarters all play meaningful roles in supporting housing demand.”
Prince George’s County purchases
29th Street Capital has acquired three class A properties totaling 1,225 units in Prince George’s County, Maryland, collectively known as the Apollo portfolio, according to the release. The company declined to provide the acquisition price. The company declined to provide the acquisition price.
The portfolio includes Ascend Apollo in Largo as well as Allure Apollo and Aspire Apollo in Camp Springs, which are located adjacent to the Largo Town Center and Branch Avenue Metro stations that provide direct rail access into Washington, D.C. The assets will be managed by 29th Street Living, 29SC’s in-house property management platform.
“Prince George’s County in particular benefits from proximity to Joint Base Andrews, healthcare campuses, and multiple federal and private-sector employment centers,” Moore said.
The properties, built between 2015 and 2019, feature modern unit finishes across studio, one-, two- and three-bedroom apartments. Their features include fitness centers, clubhouses, resident gathering spaces and off-street parking.
“They have been institutionally maintained and operate with strong in-place occupancy,” Moore said.
29th Street Capital plans to execute light value-add updates across the portfolio, including selective interior upgrades, common-area enhancements and operational improvements designed to elevate the resident experience and maintain competitive positioning within the submarket.
“The assets require targeted interior upgrades and common-area enhancements, not structural repositioning,” Moore said. “That aligns well with our vertically integrated platform, where we control property management, asset management, and construction oversight under one roof.”
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