WASHINGTON, DC–A four-unit apartment building in the Brightwood Park submarket has traded for $940,000 or $78.99 per buildable square foot. The property, located at 433 Kennedy St., NW, is sited on a 4,760-square foot lot that is zoned MU-4.
The buyer is a local private developer with plans to redevelop the property into possibly another use. Marcus & Millichap's Grant Fitzgerald and Marty Zupancic, both of the Washington DC, office, had the exclusive listing to market the property on behalf of the seller, a private investor in the District.
The sale of the property is notable for two reasons: One is that it shows pricing is beginning to regulate — or become more reliable as Fitzgerald puts it — in this neighborhood. Two, it suggests that more amenities might be coming to the micro-market.
It also shows that Kennedy Street is starting to establish itself as a corridor, Fitzgerald tells GlobeSt.com.
“There was a lot of interest from developers — in past deals it would have been more of a speculative play,” he says. “The corridor is becoming less of a spec market and more of a positive, believable development market.”
With this comes pricing that is more reliable — in the high 70s to low 80s per buildable square foot. The sale of 433 Kennedy St. landed in the sweet spot of that range at $78.99 per buildable square foot. With the earlier, speculative deals pricing was harder to predict, Fitzgerald says. “Now pricing is backing up well.”
It is unclear what type of development will go up at the site and it could possibly remain multifamily. That said, the Kennedy Street Corridor is seeing more retail amenities and homes develop — an important step to becoming an established neighborhood.
“Just having seen similar streets transform over the decade I would predict that more retailers and more housing is going to happen,” Zupancic tells GlobeSt.com. “There is momentum 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.
