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 419 Morse St. NE and 1286-1288 5th St. NE, both in the Union Market area of Washington, D.C. according to Bryn D. Merrey, senior vice president/division manager of the firm’s Mid-Atlantic and Southeastern offices. The 8,400-square-foot 5th Street asset traded for $5,450,000 while the 2,700 square feet building on Morse St. closed for $1,315,000, $40,000 over its list price.
Ian Ruel, investment specialist, and Josh Feldman, vice president investment in Marcus & Millichap’s Washington, D.C. office, closed both transactions. 1284-1288 5th St. NE was an off-market sale while 419 Morse St. was exclusively listed by Marcus & Millichap, a process that produced eight qualified offers, three of which were at or above the list price of $1,275,000. Both investors plan to re-tenant the units at market rental rates as leases roll over. These properties represent the second and third Union Market retail closings that Ruel and Feldman have traded this fall. The team also handled the 1261 4th St. NE transaction that closed on September 28, 2016.
“Values have exploded due to the massive amount of current and proposed development in and around the NOMA area,” explains Ruel. “Union Market is transforming from a gritty industrial market to a retail destination but still has a ways to go. Investors are beginning to recognize this and are buying up small industrial bays with the hope to re-tenant them in the future as the market continues to improve.”
The two properties, only about a block away from one another, are both located in the expanding Union Market neighborhood, just north of Florida Avenue NE. Both properties currently have short term tenants, Morse Street with one, 5th Street with three.
“Since the discussion began over the potential historical designation of Union Market buildings, many investors have been wondering how values will change after the official announcement,” Ruel concludes. “These transactions show that despite the potential of this historic designation, investors still believe in Union Market and its status as a unique retail destination.”
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
