SPOTLIGHT ON SOUTHWEST/NAVY YARD MULTIFAMILY...Average asking rent per unit as of Q1 2017,...
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© 2017 Greysteel / 1 SPOTLIGHT ON SOUTHWEST/NAVY YARD MULTIFAMILY APRIL 2017 Market Overview Rental Overview Nationals Park 410 Cedar Exclusive Offering — See Below Number of Bedrooms Average Rent Per Month 58% One Bedroom 20% Studio 1% Three Bedroom 21% Two Bedroom Average Unit Mixes $4,099 $3,000 $2,131 $1,830 3BR 2BR 1BR Studio $- $1,000 $2,000 $3,000 $4,000 $5,000 Data courtesy of Greysteel Research, CoStar Realty Information, Inc. Analysis excludes fully affordable properties. 1,132 Total net absorption over the last 12 months, a 147% increase over the five-year average $ 2,317 Average asking rent per unit as of Q1 2017, representing 8.7% year-over- year growth 1,469 Units delivered in the last 12 months, with another 1,540 breaking ground since Q1 2016 $ 720M Total multifamily investment sale volume since 2012, with an average sale price per unit of over $294,000 and a 4.9% cap rate
Transcript of SPOTLIGHT ON SOUTHWEST/NAVY YARD MULTIFAMILY...Average asking rent per unit as of Q1 2017,...
© 2017 Greysteel / 1
SPOTLIGHT ON SOUTHWEST/NAVY YARD MULTIFAMILYAPRIL 2017
Market Overview Rental Overview
Nationals Park 410 Cedar Exclusive Offering — See BelowN
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Average Rent Per Month
58% One Bedroom
20%Studio
1%Three Bedroom21%
Two Bedroom
Average Unit Mixes
$4,099
$3,000
$2,131
$1,830
3BR
2BR
1BR
Studio
$- $1,000 $2,000 $3,000 $4,000 $5,000Data courtesy of Greysteel Research, CoStar Realty Information, Inc.
Analysis excludes fully affordable properties.
1,132Total net absorption over the last 12 months, a 147% increase over the five-year average
$2,317Average asking rent per unit as of Q1 2017, representing 8.7% year-over-year growth
1,469Units delivered in the last 12 months, with another 1,540 breaking ground since Q1 2016
$720MTotal multifamily investment sale volume since 2012, with an average sale price per unit of over $294,000 and a 4.9% cap rate
© 2017 Greysteel / 2
Arris | 1331 4th St, SE
Unit Type Asking Rent $/PSF
Studio $1,914 $3.65
One Bedroom $2,641 $3.51
Two Bedroom $3,499 $3.18
1001 @ Waterfront Apartments | 1001 3rd St, SW
Unit Type Asking Rent $/PSF
Studio $1,344 $2.45
One Bedroom $1,742 $2.12
Two Bedroom $2,125 $1.86
1023 14th | 1023 14th St, SE
Unit Type Asking Rent $/PSF
One Bedroom $1,311 $1.87
Two Bedroom $1,530 $1.70
Dock 79 | 79 Potomac Ave, SE
Unit Type Asking Rent $/PSF
Studio $2,018 $3.41
One Bedroom $2,301 $3.28
Two Bedroom $3,546 $3.24
Capitol Park Tower | 301 G St, SW
Unit Type Asking Rent $/PSF
Studio $1,507 $3.13
One Bedroom $1,794 $2.83
Two Bedroom $2,429 $3.21
Three Bedroom $2,992 $3.00
Capitol Park Plaza | 201 I St, SW
Unit Type Asking Rent $/PSF
Studio $1,147 $2.43
One Bedroom $1,197 $2.04
Two Bedroom $2,277 $2.02
Rent Comparables APRIL 2017
CONTINUE TO SALES COMPARABLES
Unit Amenities
Property Arris Dock 79 1001 @ Waterfront Capitol Park Tower 1023 14th St SE Capitol Park Plaza
Year Built | Occupancy 2016 | 91% 2016 | Lease-up 1960, r. 2009 | 93% 1910 | 97% 1955, r. 2007 | 100% 1963 | 99%
Balcony/Patio • • • •
Cathedral/High Ceilings • • • •
Ceiling Fans • •
Dishwasher • • • • •
Fireplace
Granite Countertops • • •
Hardwood Flooring • • • •
Pet-Friendly • • • • •
Stainless Steel Appliances • • • • •
Washer/Dryer • •
Listed properties represent a small cross-sampling of the overall market. Data courtesy of CoStar Realty Information, Inc.
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Sales Comparables
The report below features a sampling of properties sold in the last two years in the Southwest D.C. area. Please note the
different locations and adjust comparisons accordingly. Also note that sales comparables provide a snapshot of recent
transactions and are not a perfect predictor of future market movement and behavior.
APRIL 2017
CONTINUE TO EXCLUSIVE OFFERING
816-820 Potomac816-820 Potomac
Ave, SE
526 5th526 5th St, SE
719 G719 G St, SE
Leo at Waterfront Station
1150 4th St, SW
1516 K1516 K St, SE
Lex at Waterfront Station
1151 4th St, SW
Property
Close Date January 2017 August 2016 February 2016 June 2015 April 2015 January 2015
No. of Units 16 12 6 266 12 264
Year Built 1928 1956 1900 1971, r. 2014 1954 2014
Price $7,150,000 $2,500,000 $3,500,000 $91,000,000 $2,255,500 $80,000,000
Price/Unit $446,875 $208,333 $583,333 $342,105 $187,960 $303,030
Price/SF $502.07 $300.30 $583.92 $455.00 $214.91 $404.04
Listed properties represent a small cross-sampling of the overall market. Data courtesy of CoStar Realty Information, Inc.
© 2017 Greysteel / 4
Exclusive Offering APRIL 2017
410 CEDAR 410 Cedar Street, NW
Scarcity of Similar ProductExisting rental supply within a one block radius of a red line Metro station is dominated by newly built or renovated, luxury apartments and condos. 410 Cedar offers a rare value-add opportunity less than 500 feet from the Takoma red line station, arguably Metro’s most popular route.
Connectivity & Access410 Cedar provides unrivaled connectivity and access to its residents via public transit and motor thoroughfare. Options to Downtown Washington and suburban Maryland include Metro’s red line, accessible at Takoma, and multiple bus routes along Georgia Ave NW.
Small Town Feel in the Big CityResidents of this in-demand neighborhood cite its small town feel in a major metropolitan area as a major draw. The neighborhood’s history goes as far back as the late nineteenth century, when Takoma was incorporated as one of Washington’s first commuter suburbs.
Near Transformative DevelopmentsSome of the area’s largest mixed-use developments immediately surrounding the Property including the Parks at Walter Reed and the Blairs at Silver Spring. Both are poised to bring additional retail, grocery and other town center-style amenities to the neighborhood.
Resurgence of Downtown TakomaBoasting a Walk Score of 87, residents of 410 Cedar can accomplish almost all errands by foot. A variety of popular shops, cafes and neighborhood hotspots can be found along Carroll Street, including Busboys & Poets, Republic Restaurant, and Electric Maid Exchange.
Value-Add PotentialCurrent ownership has laid the foundation for a success value-add investment through recent capital expenditures, including the installation of a brand new roof in early 2017. Potential investors can capitalize on the opportunity to complete additional unit upgrades and reduce the approximately 70%–80% spread between current in-place rents and market rents, as evidenced by achievable rental rates at nearby luxury apartment communities.
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