There is precious little other development under wayhere--either officially or in the negotiation stage--despite the DCarea's relative strength. It is no surprise, of course, that themultifamily space is the first category to be targeted fordevelopment now. Sales of multifamily properties have been tradedfuriously; at the same time the DC area is nearing a supply shortage forcondos, according to McWilliams|Ballard's 2009 Washington MetroArea Condominium Market Overview. Another sign that development iscomingback: AvalonBay has publicly committed to a developmentstrategy in anticipation of the unmet demand in two years.

|

The bulk of Milam's work now, though, is on multifamily sales.He reports ten deals under contract. "DC is on fire," he says.

|

A recent trade he brokered was the New Amsterdam, a75,375-square foot multifamily and retail property located at 270114th St. It sold for$11.7 million, or $156 per square foot, or$130,556 per unit.

|

The seller was Penrose Management Co., an affordable housingcompany in Philadelphia; the buyer was Van Meter Construction. Thebuilding traded at a 5 cap rate, Milan says. "That is howridiculous pricing has gotten here. This deal fell out of contractthree time because of the pricing, in fact."

|

The mixed-use property's 90 residential units are currently 99%occupied; its four ground-level retail spaces total 4,000 squarefeet.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.