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 the Transcentury Building in Adams Morgan, a fully-entitled 55-unit multifamily development project located in Washington, D.C., according to Bryn D. Merrey, senior vice president/division manager of the firm’s Mid-Atlantic and Southeastern offices. The asset sold for $9,000,000, approximately $200 per Floor Area Ratio (FAR) square foot.
Marty Zupancic and Matt Chambers, investment specialists in Marcus & Millichap’s Washington, D.C. office, were awarded the exclusive listing to market the property on behalf of the seller, a well-known D.C. developer. The buyer, also a developer, was also secured by Zupancic and Chambers.
The Transcentury Building is located at 1724 Kalorama Road NW in the Adams Morgan neighborhood of Washington, D.C. The property was sold for approximately $163,600 per unit, or $200 per FAR square foot, higher than most in the Adams Morgan submarket. For example, comparable properties, 1711 Florida Ave. NW and 2237 Champlain St. NW, sold in this submarket for $137 and $86 per FAR square foot, respectively. While the 1724 Kalorama Road development originally envisioned 45 units with 15 parking spaces, new zoning regulations allow the developer to reduce the number of parking spaces to eight and therefore increase the number of units to 55. The conversion of this property from concrete to stick build has made the sale more cost efficient for the developer.
“The Adams Morgan neighborhood has high occupancy rates and has a variety of dining and shopping options, providing the right market for a project of this nature,” Chambers explains.
The Transcentury Building was designed in 1923 in the Art Deco style. The redevelopment will be facilitated by PGN Architects. Amenities will include a community lounge space, public and private rooftop decks, a Wi-Fi equipped lobby, and storage units available for rent. The building is also equipped with a pet wash room, an added bonus for pet owners. Meridian Hill Park, located at the end of Kalorama Road, offers a safe place to exercise and enjoy the outdoors.
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
