WASHINGTON, DC–Another luxury residential apartment building is entering the city's pipeline. Lerner Enterprises has announced it plans to develop the Lerner 1000 South Capitol, a 13-story, 250-unit, 300,000 square-foot property that will be within walking distance of the Navy Yard | Ballpark Metro Station and Nationals Park.
The building is being designed by Shalom Baranes Associates and its interiors will be designed by Cecconi Simone, an interior-design practice in Toronto. Lerner is developing the project to LEED Silver Certification.
According to JLL, the Washington DC area multifamily market is projected to add 11,765 units in 2018, with the District accounting for 46% of these new projects. Of the 5,449 units expected to deliver in the District this year, 3,721 units, or 68%, are located in emerging submarkets, JLL says.
Multifamily development, in short, continues here at a rapid pace in large part because of continued demand — especially for product such as Lerner's new endeavor. Indeed, for nearly five years, the Washington metro has been absorbing new apartment product in greater amounts than the long-term average of approximately 7,000 units per year, according to Transwestern's Trendlines report issued earlier this year. However, a new question is being raised about this demand — namely, will it continue at its previously elevated levels? There is a case to be made that yes it will, more or less.
But a recent study by the Stephen S. Fuller Institute at George Mason University suggests there is starting to be a net migration of younger people leaving the Washington metro due to affordability issues and better job prospects in other cities — a trend that local developers are watching.
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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.
