Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, today announced the sale of 1902 R Street NW, an apartment property located in Washington, D.C., according to Bryn D. Merrey, first vice president and district manager of the firm’s Mid-Atlantic offices. The 5020-square foot asset sold for $2,600,000 or $518 per gross square foot.
“Low interest rates and population growth have led to strong demand for commercial real estate in neighborhoods such as Dupont,” first vice president investments Stacey Milam explained. “As evidence of this demand, the property generated six offers in two weeks.”
Cameron M. Webb, Milam, and Jesse Mates, investment specialists in Marcus & Millichap’s Washington, D.C. office, had the exclusive listing to market the property on behalf of the seller, a local business owner who has owned the property since the early 1980s. The buyer, a local private investor, was also secured by Mates and Webb.
“Properties in desirable and stable neighborhoods like Dupont Circle have always attracted savvy investors,” Mates said of the closing. “However, with 1902 R Street, the buyer saw the proximity to the embassies as an opportunity for a unique housing option. They plan to repurpose the property towards corporate travelers and Airbnb stays.”
The Property, which functioned as the Shalom House at Inn Washington, a five-room extended-stay hotel, is located at 1902 R Street NW, a block and a half from Connecticut Avenue in the Dupont Circle neighborhood of D.C. The previous owner ran his business from the first level of the property which has four total levels and five parking spaces. The current investor plans to redesign the space in order to offer more accommodations for future guests.
“We’ve started to see investors gravitate towards short-term corporate housing and Airbnb for properties like this one in historically-strong DC neighborhoods,” Webb concluded. “Areas with access to public transportation, retail, entertainment, and dining choices create an ideal environment for unique housing options.”
About Marcus & Millichap (NYSE: MMI)
With over 1,600 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research and advisory services. Founded in 1971, the firm closed over 8,700 transactions in 2015 with a value of approximately $37.8 billion. The company has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry’s most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more, please visit: www.MarcusMillichap.com
