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Multifamily

Multifamily Development Opportunity

119 Kennedy St NW, Washington, DC 20011

Listing Price: $2,875,000

Cap Rate
6.07%
Number of Units
38
GRM
2.70
Occupancy
95.0%
Price/Unit
$75,658
Price/Gross SF
$88.46
Gross SF
32,500

Investment Overview

Marcus & Millichap is pleased to exclusively represent the owner of 119 Kennedy Street NW, DC 20011, in the Brightwood subdivision. This property is situated on a.18-acre lot with an existing four-unit building.

This MU-4 Zoning parcel, with a 3.0 FAR allows for development up to 32,500 square feet with fifty feet of frontage, as a matter of right. The investment includes the ability to build between 35-40 apartment or condominium units in a corridor experiencing a significant revitalization.

A buyer can achieve a NOI of approximately $800,000, after construction and stabilization with 38 multifamily units. If this building is developed as condominiums, a Developer could sell the condo units at an average of $386,157 per unit.

The Brightwood/Petworth submarket, , and specifically Kennedy Street, are benefiting from not only a strong condominium sales market averaging sales values over $542 per square foot, but also from rising multifamily rents. Therefore, both strategies should be considered when looking at this investment opportunity.

Since 2000, the median household income in the area has increased by 97.4%. The average household income in 2022 for this corridor is $145,000, approximately 50% higher than the U.S. average. With dozens of development projects set to be completed over the next few years, Brightwood is set to become a retail hot bed, with new commercial real estate being developed on Kennedy Street, and at the Fort Totten metro (5 blocks away).

The Kennedy Street corridor is a designated “Great Street” corridor that is bolstered by new residential and commercial development. In addition to its recent residential building boom, Kennedy Street offers a mix of independent retailers, restaurants, and specialty grocers. This site is located two miles away from “The Park at Walter Reed, a 66-acre redevelopment of the former Walter Reed Army Medical Center. This Park will include 3.1 million square feet of mixed-use development.

Investment Highlights

  • Opportunity to build 40 units in this thriving submarket of Petworth in NW Washington DC
  • The parcel is zoned, MU-4 which will allow up to a 3.0 FAR and 50' in building height with the Inclusionary Zoning allowance
  • Large-scale residential development of office, residential, and retail at the Walter Reed campus, and other areas of this Petworth submarket
  • The site is less than a mile from the Fort Totten metro and walking distance to significant retail on Georgia Avenue

Exclusively Listed By

Broker of Record

  • Brian Hosey

    Senior Vice President/Division Manager

    (202) 536-3700

    License(s) DC: BR200201612

    District of Columbia

Financing By

Multifamily

Multifamily Development Opportunity

Listing Price: $2,875,000

Cap Rate
6.07%
Number of Units
38
GRM
2.70
Occupancy
95.0%
Price/Unit
$75,658
Price/Gross SF
$88.46
Gross SF
32,500

Investment Highlights

  • Opportunity to build 40 units in this thriving submarket of Petworth in NW Washington DC
  • The parcel is zoned, MU-4 which will allow up to a 3.0 FAR and 50' in building height with the Inclusionary Zoning allowance
  • Large-scale residential development of office, residential, and retail at the Walter Reed campus, and other areas of this Petworth submarket
  • The site is less than a mile from the Fort Totten metro and walking distance to significant retail on Georgia Avenue

Investment Overview

Marcus & Millichap is pleased to exclusively represent the owner of 119 Kennedy Street NW, DC 20011, in the Brightwood subdivision. This property is situated on a.18-acre lot with an existing four-unit building. This MU-4 Zoning parcel, with a 3.0 FAR allows for development up to 32,500 square feet with fifty feet of frontage, as a matter of right. The investment includes the ability to build between 35-40 apartment or condominium units in a corridor experiencing a significant revitalization. A buyer can achieve a NOI of approximately $800,000, after construction and stabilization with 38 multifamily units. If this building is developed as condominiums, a Developer could sell the condo units at an average of $386,157 per unit. The Brightwood/Petworth submarket, , and specifically Kennedy Street, are benefiting from not only a strong condominium sales market averaging sales values over $542 per square foot, but also from rising multifamily rents. Therefore, both strategies should be considered when looking at this investment opportunity. Since 2000, the median household income in the area has increased by 97.4%. The average household income in 2022 for this corridor is $145,000, approximately 50% higher than the U.S. average. With dozens of development projects set to be completed over the next few years, Brightwood is set to become a retail hot bed, with new commercial real estate being developed on Kennedy Street, and at the Fort Totten metro (5 blocks away). The Kennedy Street corridor is a designated “Great Street” corridor that is bolstered by new residential and commercial development. In addition to its recent residential building boom, Kennedy Street offers a mix of independent retailers, restaurants, and specialty grocers. This site is located two miles away from “The Park at Walter Reed, a 66-acre redevelopment of the former Walter Reed Army Medical Center. This Park will include 3.1 million square feet of mixed-use development.

Exclusively Listed By

Broker of Record

  • Brian Hosey

    Senior Vice President/Division Manager

    (202) 536-3700

    License(s): DC: BR200201612

    District of Columbia

Financing By

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