Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Two Georgetown buildings owed by the Heon family have been put on the market, one of which is at the iconic corner of M and Wisconsin Ave. They are: 3150 M St.–a 6,662 square foot building which currently houses Nathan’s restaurant–and 1351 Wisconsin Ave., another retail site of 6,086 square feet. Both buildings are going to be delivered to the market vacant as the tenants are now preparing to leave, Josh Feldman of Marcus & Millichap, who is representing the seller, tells GlobeSt.com.

A vacant building entering the current market would have a steep path to climb now, but the Georgetown market is an exception in many ways. A high-end retail and residential part of town, buildings rarely trade or even come to market here. Indeed the Heon family has owned these properties for close to a century. These are the only two major retail assets listed for sale in Georgetown right now, Feldman says.

Thus, even without the recession, there are few comps against which to compare this deal, he continues. The property at 1329 Wisconsin sold for $6.7 million, or $1592 per square foot in 2007–one of the submarkets highest deals. More recently, 1229 Wisconsin Ave.–future home of the new Apple store–traded for $13.39 million.

Feldman declines to name an asking price for the buildings, stating the prices will be market determined. About a year ago the family did have an offer for $20 million for the two buildings, but that deal eventually fell through.

Even Georgetown’s tony location, though, has not been able to overcome the bid-ask price spread that has hindered investment sales for the last nine months. Feldman thinks that is changing even though financing remains challenging. The biggest shift, he says, is a realization on the seller’s side that banks are no longer willing to finance high LTVs and that buyers must come to the table with a lot more cash as a result. “When it is presented in those terms,” he points out, “the seller no longer sees this as an indictment of the building’s value but rather a problem of financing.”

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
  • 1 free article* every 30 days across the ALM subscription network
  • 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 © 2021 ALM Media Properties, LLC. All Rights Reserved.