Ed Laycox, Jim Kornick, Gerald Burg and Matthew Clinebell of Marcus & Millichap represented both Sivan Properties and the seller, Rock Creek Property Group LLC.
Located at 1329 Wisconsin Ave., the recently completed building consists of street-level retail space, a mezzanine and lower-level space. The store is currently fully leased to Jones New York, which plans to use only the street level for retail sales. However, with more than 46 feet of frontage on Wisconsin Ave. and two front and two service doors the building can easily accommodate two or three tenants.
The mezzanine space, which features skylights and large windows, can also be used for retail space, although Jones New York does not intend to, according to Laycox.
Jones New York signed a 10-year lease with no options on it, Laycox says. The building's new owner is virtually guaranteed to realize a spike in rental income when the lease is over. "Rental rates in Georgetown are extremely aggressive, doubling every five to 10 years. The buyer will be able to replenish the building with higher grossing tenants then."
Indeed the retail cache Georgetown has among Washingtonians means that retail space is rarely available for sale. The closest comparable to this sale was the trade of Barnes & Noble/Barneys on M Street, Laycox says. "That traded for almost $1,200 per sf above grade last year."
"It's a very restrictive market--very few properties with investment grade tenants trade hands here."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
