WASHINGTON, DC—Here is an interesting factoid about Bernstein Management's $91 million acquisition of Sky House East in southwest DC. It traded at a low 5-cap rate, according to JLL's Christine Espenshade, who repped seller JBG Cos. in the sale.
Here is another: investors are paying roughly the same in other, more established parts of the city, she tells GlobeSt.com.
"Investors have no problem with top pricing in new markets in the DC," she says. The still-favorable fundamentals of the multifamily asset class are one reason. Another is that these locales are resonating with renters, especially single ones, she says.
Sky House East has smaller units for single people, Espenshade says. It is close in and there are great amenities nearby.
Bernstein Management acquired the sister building, Sky House West, earlier this year for $80 million. Sky House West was an abandoned office that had been converted into apartment housing.
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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.
