1931 13th St., NW 1931 13th St., NW
WASHINGTON, DC—Most property investors have a rough idea in mind when, or under what market conditions, they will sell an asset, even as they are signing the closing documents to acquire the building. There are exceptions, of course. Local families, for instance, which tend to hold on to real estate for generations; corporations that are owner-occupiers and in the District especially, associations, which need to be close to Capitol Hill. These non-profits have found over the years that it is more cost effective to own their offices instead of leasing. But every now and then a market cycle comes along where everything aligns just right for a sale: either a particular submarket has become suddenly popular, or association’s mission is evolving or some combination of both. The end result is that the seller profits very handsomely for a building that, even though it is relatively small, it has owned for decades. The best and most recent example is the sale of the site at 301 Florida Avenue NE , which an affiliate of Ditto Residential and Zusin Development acquired for $3.6 million, or $2,699 per square foot. The developers are planning to build a mixed-use residential building at the site, tearing down the liquor store and a Penske truck depot that is there now. There have been other transactions along these lines in recent weeks and while none have reached the unimaginable price point of close to $3,000 per square foot, one seller did make it past the $1,000 per square foot mark. In another deal, a property traded for a robust $726 per square foot. Washington DC-based Eastbanc recently acquired 1931 13 th St., NW for $4 million or $1,182 per square foot. The three-story, 3,385-square foot building was sold by the National Minority Aids Council, whose mission is changing, according to a blog post — to say nothing about the dramatic changes in the neighborhood in which it has been located for the last few decades. It wrote that:
In 1993 we purchased a burned out shell of a townhouse.  Our building was destroyed in the riots and fires that engulfed DC after Dr. Martin Luther King was assassinated.  A homeless neighbor was the first donor to help rebuild the townhouse.  Twenty years later, our “hood” is trendy and our building has significantly increased in value.  In our tireless quest to end the HIV epidemic, NMAC needs the ability to move quickly and develop programs without waiting for government or corporate funding. Selling the building gives us this ability.
1500 Rhode Island Ave NW 1500 Rhode Island Ave NW
The recent sale of 1500 Rhode Island Ave NW, by the American Coatings Association to the country of Hungary is another example. The historic building will serve as the country’s embassy. The 22,728-square foot building, which was first built in 1879 and renovated in 1986, traded for $16.5 million, or $726 per square foot.  It had been on the market for some 13 months after the association occupied the building for some 77 years, having moved in in 1939.

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