Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the industrial market.)

WASHINGTON, DC-J Street Development is putting one of its NoMa assets on the block. The property at 1111 N. Capitol St. is a 174,058-sf flex-industrial building currently leased to the Smithsonian Institution through September 2008.

It is a historic building originally built in 1925 as a warehouse for the C&P Telephone Co. Today the Smithsonian uses it to build exhibits for the Mall, Elizabeth Price, president of NoMa BID, tells GlobeSt.com. J Street could not be reached by deadline.

“They are taking offers next week and could make a decision end of year or the first of next year,” Price says. According to Eastdil’s marketing materials, the company in charge of brokering the sale, the architectural firm Shalom Baranes & Associates has created conceptual plans to redevelop the property into a roughly 525,000-sf, class A office building. “As part of the proposed transaction, the property will be conveyed with Transferable Development Rights sufficient to develop at this density,” it said. “In addition, the existing owner has already performed significant entitlement work on the site. The costs and time already invested in this pre-development phase can be valued at $10 to $15 per sf.”

There are not many comps on the market to which this particular structure can be compared, given its use and historic designation–and certainly none that have occurred after the credit crunch which has affected investment sales prices. One possible comp, says Tonya Ginter, director of research & marketing for GVA Advantis, is Capital Plaza I, a 12-story, 291,838-sf office building located at 1200 First St., that was purchased by Apollo Real Estate Advisors Value Enhancement Fund VI from a partnership that included Stephen A. Goldberg. It traded for $94.5 million, or $324 per sf, in the first half of the year.

Still, it is debatable whether those terms could be matched in the current environment, Ginter tells GlobeSt.com. “The investment sales market has slowed down throughout Washington, DC since the credit crunch began.”

NoMA, Capitol Hill and the Baseball District, though, may experience a mini flurry of sales as a result, she speculated. “These buildings are so much less expensive than ones in the East End and the CBD. I think more people will consider NoMA and the southeast as rents and the buildings are cheaper and the difficulty of finding financing with the credit crunch.”

Eastdil is also representing the Bristol Group on the sale of One NoMa Station, an office building that went on the market in the spring. It is currently evaluating the offers, according to Price.

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

Once you are an ALM digital member, you’ll receive:

  • 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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.