WASHINGTON, DC-Prices for the small commercial properties that are typically found along the Rhode Island Ave. Corridor have been rising this year. Why? Well, the short answer is that developers are reacting to the opportunities offered by the massive redevelopment projects underway, or getting started, in the area.

That is partly true but Marcus & Millichap broker Benjamin Wilson adds some nuance to the narrative. Prior to 2016, he told GlobeSt.com, developers just weren't that interested in these smaller buildings. But as Columbia Heights and Petworth became saturated with new development, they started to show interest.

Hence, such trades as 2027 Rhode Island Ave. NE, a mixed-use property that just closed for $1.9 million, or 10% above its list price. Wilson, Ryan Smith and Josh Feldman listed the 3,739-square foot property on behalf of the seller, a local business.

Marcus & Millichap's Cameron Webb represented the seller, a long-time client and local investor that plans to develop a 30-plus multifamily building on the property as it is currently zoned C-2-A.

Another example is the sale of 1522 Rhode Island Ave, NE, a 2,214-square foot retail property that Feldman and Wilson listed on behalf of the seller. They also represented the buyer, a local private developer who purchased the property to eventually redevelop after the current leases expire.

“Right now, there is a lot of competition for development sites in neighborhoods that have historically attracted developers,” Wilson said. “This results in smaller developers looking into tertiary markets to identify opportunities.”

1522 Rhode Island Ave N.E., is also zoned C-2-A, allowing for the build out of 20,230 square feet.

“Because the Rhode Island Avenue corridor has a favorable mixed-use zoning on sizable parcels and serves as a connector between College Park and downtown DC, it's become an appealing area for investors,” Wilson said.

Three Major Projects

To be sure, the larger projects in the area also are doing their part to drive up prices, but they are only part of the story, Wilson said.

But their presence will be felt more as the projects move closer to the starting line.

One major project coming up in the submarket is MRP Realty's redevelopment of 600 Rhode Island Ave NE, which is part of a larger project that will deliver more than 1500 residential units and 200,000-square feet of retail at the Rhode Island metro stop.

Another is Eckington Yards, a 695-unit mixed-use development on a three-acre site located on Eckington Place NE and Harry Thomas Way, NE. The developers, JBG Cos. and Boundary Cos., just received approval for the project from the DC Zoning Commission.

The largest, of course, is the 20-acre RIA mixed-use project proposed at the beginning of the year by developer MidCity. Plans call for a grocery store, 1,760 residences, a one-acre community green and a new street grid to connect the old and new sections of the neighborhood. The first phase of construction, which is schedule for groundbreaking in late 2017, will include a 200-unit affordable housing building for seniors. Meanwhile the demolition of the Brentwood Village shopping center is scheduled for the end of this year.

1522 Rhode Island Ave N.E., is also zoned C-2-A, allowing for the build out of 20,230 square feet.

Three Major Projects

To be sure, the larger projects in the area also are doing their part to drive up prices, but they are only part of the story, Wilson said.

But their presence will be felt more as the projects move closer to the starting line.

Instant Insights /

An Alternative Theory On Why Prices Are Rising Along the Rhode Island Corridor

Related Stories

Recommended For You