WASHINGTON, DC–A local owner of a retail/wholesale business has acquired a 2,880-square foot retail property in the District, paying $36,000 over its list price. The property will under lease for the next three years, which means the business won't be able to expand its operations until then.
But that is perfectly okay. For starters, the owner already has a few other buildings in the neighborhood, Union Market — the latest emerging submarket in the District to exhibit real promise.
Indeed, developable land has become scarce and available commercial properties on the market tend to attract many bidders. Rents, meanwhile, are rapidly rising, spurred on by the commercial development.
So by the time the new owner of 1261 4th St., SE, is ready to move in, the neighborhood should be positively booming with all the small mixed-use retail-residential projects underway. And as owner of the building, the wholesaler won't have to pay greatly-appreciated rental rates that are expected.
The building sold for $1.4 million, or $770 per square foot of ground, which is the highest price per square foot for an inline comparable building in the Union Market District, according to Marcus & Millichap's Ian Ruel and Josh Feldman who marketed the property on behalf of the seller, a local private investor.
There were about eight other offers that went over the list price, Ruel told GlobeSt.com.
It is little wonder why, he said. “There are solid leases getting signed here and the tenants are becoming more retail oriented — even high end retail.”
The buyer, he added, “already owns two buildings so he is really cashing in on Union Market's growth.”
The buyer of 1261 4th St.,SE, is not the only one willing to wait to capitalize on Union Market's growth. Earlier this year LCOR purchased two parcels located on 500 and 530 Morse St. They will be unavailable for development for several years, there are tenants still on the properties and the company has to work with the District to comply with Florida Ave. sector plan for higher density and mixed use. Meanwhile LCOR is working on The Edison at Gateway Market, a 188-unit mixed-use project with a 30,000-square foot retail component that will be owned and operated by Edens.
WASHINGTON, DC–A local owner of a retail/wholesale business has acquired a 2,880-square foot retail property in the District, paying $36,000 over its list price. The property will under lease for the next three years, which means the business won't be able to expand its operations until then.
But that is perfectly okay. For starters, the owner already has a few other buildings in the neighborhood, Union Market — the latest emerging submarket in the District to exhibit real promise.
Indeed, developable land has become scarce and available commercial properties on the market tend to attract many bidders. Rents, meanwhile, are rapidly rising, spurred on by the commercial development.
So by the time the new owner of 1261 4th St., SE, is ready to move in, the neighborhood should be positively booming with all the small mixed-use retail-residential projects underway. And as owner of the building, the wholesaler won't have to pay greatly-appreciated rental rates that are expected.
The building sold for $1.4 million, or $770 per square foot of ground, which is the highest price per square foot for an inline comparable building in the Union Market District, according to Marcus & Millichap's Ian Ruel and Josh Feldman who marketed the property on behalf of the seller, a local private investor.
There were about eight other offers that went over the list price, Ruel told GlobeSt.com.
It is little wonder why, he said. “There are solid leases getting signed here and the tenants are becoming more retail oriented — even high end retail.”
The buyer, he added, “already owns two buildings so he is really cashing in on Union Market's growth.”
The buyer of 1261 4th St.,SE, is not the only one willing to wait to capitalize on Union Market's growth. Earlier this year LCOR purchased two parcels located on 500 and 530 Morse St. They will be unavailable for development for several years, there are tenants still on the properties and the company has to work with the District to comply with Florida Ave. sector plan for higher density and mixed use. Meanwhile LCOR is working on The Edison at Gateway Market, a 188-unit mixed-use project with a 30,000-square foot retail component that will be owned and operated by Edens.
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