Investment Overview

Marcus & Millichap is pleased to exclusively represent the ownership in the sale of 1832-1840 Fenwick Street NE, Washington D.C. (the property). This 19,552 SF industrial property located in the heart of Ivy City is fully occupied by 2 tenants on NNN leases with a WALT of 8.8 years. With numerous completed redevelopments directly adjacent to the subject and across the Ivy City submarket, the property provides stable cashflow with long-term redevelopment potential. East2West LLC, a cannabis company with locations in 9 states, occupies unit 1840 which comprises 83% of the GLA. Currently, the tenant is in the final stages of building out its state-of-the-art manufacturing facility. Across their two-level, 16,152 SF space, the tenant is investing $1.9 million into improving the property. Notable upgrades as part of their move-in include a new sprinkler system, new HVAC systems, roof solar panels and electrical upgrades. East2West, LLC’s 11-year lease commenced in July 2024, and they expect to be operational by fall 2025. In unit 1832, TWC Cheer Studio occupies 3,400 SF with a lease expiration of July 31, 2028. The unit has one drive-in door facing Fenwick Street, 14’9” clear heights and 1 bathroom. Tenants benefit from operating in this central location with access to more than 141,167 residents within 2-miles. Many warehouses in Ivy City have been redeveloped to retail and residential uses. The property is adjacent to the Pappas Tomato Factory, Hecht Warehouse and is surrounded by modern amenities, including Planet Fitness, numerous restaurants, multiple breweries, and stores such as Target and Petco. Route 50 is directly accessible, connecting the property to the broader region with both I-295 and I-495 within 12-minutes away. This investment provides the opportunity to own a cash flowing multitenant industrial asset with minimal management responsibility in one of the fastest growing submarkets in D.C. Current ownership is willing to provide Seller-Financing to a qualified purchaser with a 35% down payment, a 6% interest rate and interest-only payments for 5-years. The Seller financing allows for a cash-on-cash return of 12.53%. With zoning that encourages industrial uses and redevelopment, a new owner can enjoy strong cash flow while the Ivy City submarket continues to blossom.