Investment Overview

Marcus & Millichap is pleased to represent the owners of 716 Kennedy Street NW, a large retail building in the Petworth submarket. Situated on a large 0.47-acre parcel, this 7,900-square-foot building offers both immediate functionality for an owner-user and significant long-term redevelopment potential. 716 Kennedy Street NW is zoned MU-4, allowing uses for retail, office, and residential. For owner-users, the asset provides a unique opportunity to acquire a large retail presence with a daily traffic count of 6,816 vehicles. The asset also includes a large parking lot accommodating approximately 25 cars, along with rear alley access to the attached seven-car garage. The existing improvements can accommodate a variety of commercial uses, including retail, office, service-oriented businesses, or its former use as a funeral home. In addition, the site’s size and depth allow for flexible utilization, including outdoor space or future phased expansion. This flexibility is particularly valuable along Kennedy Street, where neighborhood-serving businesses continue to benefit from a growing and loyal residential customer base. From an investment perspective, an owner can earn approximately $30.00 PSF with a NNN lease from a retail, office, or nonprofit tenant. The building will perform above an eight percent cap rate once stabilized. From a development perspective, the property offers a compelling opportunity to capitalize on the corridor’s ongoing transformation. The site has the potential to support a building exceeding 60,000 square feet, with 60+ residential units as a matter of right. Opportunities of this scale are increasingly rare in Northwest D.C., particularly along corridors that are actively transitioning into higher-density, mixed-use environments. Kennedy Street NW has experienced a noticeable resurgence in recent years, driven by a combination of public and private investment. As part of the local ?Great Streets? initiative, the corridor has benefited from targeted funding and revitalization efforts aimed at strengthening small businesses, improving infrastructure, and enhancing the pedestrian experience. These initiatives have contributed to a steady increase in new retail concepts, neighborhood-serving businesses, and residential development. The upper Northwest submarkets continue to attract developers and investors seeking value relative to more mature neighborhoods such as Petworth and Columbia Heights. Several new and recently completed residential and mixed-use projects along and near Kennedy Street have introduced modern housing options and activated ground-floor retail, reinforcing the corridor’s upward trajectory. This wave of development is helping to reshape the area into a more vibrant, walkable neighborhood while supporting rent growth and long-term property value appreciation. The property is strategically positioned within a dense and stable residential area, with a strong base of renters and homeowners who support local retail and services. Its location also provides convenient access to major thoroughfares such as Georgia Avenue and 16th Street NW, offering connectivity to downtown Washington, D.C., Silver Spring, and other key employment centers. Multiple Metrobus routes serve the corridor, further enhancing accessibility for residents, employees, and customers.