Investment Overview

Marcus & Millichap is pleased to exclusively represent the owner of 128 Kennedy Street NW, DC 20011, in the Brightwood subdivision. This property is situated on a .44-acre corner lot at Kennedy Street and Missouri Avenue. Currently, there is a 10,193 square foot building tenanted by CVS Pharmacy. This 19,251 square foot lot is zoned MU-4, which allows a 3.0 FAR. As a matter of right, a developer can build up to 57,753 square feet with fifty feet of frontage as a matter of right. The investment includes the ability to build approximately fifty residential units and 10,000 square feet of retail space in a corridor experiencing significant revitalization. A buyer can achieve a NOI of approximately $1,550,000 after leasing the multifamily units and retail space. If this building is developed as condominiums, the units would have an average market value of $386,157 per unit. The Brightwood/Petworth submarket, and specifically Kennedy Street, are benefiting from a strong condominium sales market with sales value averaging $542 per square foot. Also, this submarket is experiencing rising multifamily rental rates year over year. 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 (five 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.