WASHINGTON, DC-GlobeSt.com caught up with regional manager of Marcus & Millichap's Washington, D.C. office, Bryn D. Merrey, to discuss the Chinatown mixed-use trade covered this morning.
We reported that 740 6th St., NW, a 12,130-square foot mixed use property, traded to a developer.
Marcus & Millichap Real Estate Investment Services' Stacey Milam and Peggy Brooks Smith marketed the property on behalf of the seller, a family partnership that has owned the property since the early 1900's. The buyer was secured and represented by Brooks Smith and Milam.
Merrey tells us--unsurprisingly, given its activity in this part of town--that the buyer is Douglas Development. The property traded for $6.1 million and the cap rate is roughly 1.9, primarily because this acquisition is largely a redevelopment play.
"Douglas will be repositioning the building," he says. There is some, but not much, income on the property, he adds.
Douglas likes the trade because it already owns a lot in the area, Merrey says, and it will realize economies of scale with another purchase. "And, of course, it will also have a chance to raise more income from it."
The building has nine rental units consisting of restaurants on the first and part of the second floors and office tenants on the balance of the second and upper floors. It is located on the same block as the Verizon Center with entrances to 2 Metro stops.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
