WASHINGTON, DC - Marcus & Millichap has announced last week that the Zupancic Group of Marcus & Millichap will exclusively market the sale of Capitol Park Plaza & Twins, an existing multifamily asset with the greatest number of units in the burgeoning Southwest Waterfront and Navy Yard submarket, according to Brian Hosey, regional manager of the firm’s Washington, D.C. office. Capitol Park Plaza & Twins is a 648-unit apartment community comprised of three nine-story buildings.
Over the past two decades, the Southwest Waterfront and Navy Yard submarket has undergone a transformative revitalization. Anchored by Nationals Park, Audi Field, and Phase I of the Wharf, the submarket continues to build steam with over $6 billion dollars and 13.1 million square feet of further mixed-use development in the pipeline including Phase II of the Wharf, the Yards, and Buzzard Point, that will be set within a mile of the subject property.
Eric Jentoft-Herr, investment sales associate of Marcus & Millichap said, "Sports stadiums have historically been major catalysts for growth in submarkets throughout the United States. Despite the short-term uncertainty that COVID-19 has caused, we are confident that demand will return quickly and the fundamental characteristics that drove development around stadiums like Nationals Park and Audi Field will continue to be in effect long into the future."
The Wharf is one of the largest active waterfront developments in the nation with stunning views and a lively community along one mile of the Potomac River. The Wharf will deliver 3.2 million square feet of residential, restaurant, retail, office, and hospitality space at full completion in 2022. In addition, the Yards development will include 3.4 million square feet of residential, restaurants, retail, office, and hospitality space at completion. Finally, the Buzzard Point development plans feature 6.5 million square feet of residential, office, retail, dining, and hotel space.
The submarket's extensive past, present, and future growth paired with the asset's significant size provides a rare opportunity to make a large-scale acquisition for future development while preserving affordable housing in the short term. With 910,507 buildable(FAR) square feet by-right, Capitol Park Plaza & Twins provides a developer the opportunity to play a significant role in the area's continued revitalization.
Marty Zupancic, first vice president of investments at Marcus & Millichap said, "The opportunity to acquire an existing multifamily asset with such significant future development potential does not present itself every day. Especially in a submarket that exhibits the type of meteoric growth seen in Southwest Waterfront and Navy Yard and will continue to experience for the next decade."
Capitol Park Plaza & Twins' history dates to 1959 when the original Capitol Park development was designed by architect Chloethiel Woodard Smith as a five-property residential neighborhood. Capitol Park has had a considerable influence on Southwest D.C. as the first major residential development in the area and created an independent residential neighborhood spread out among five separate apartment communities which were delivered in phases.
One does not need to look far to see a clear example of the massive development opportunity provided by Capitol Park Plaza & Twins. Urban Investment Partners (UIP) recently completed the renovation of Capitol Park Towers, one of the five properties that made up the original Capitol Park development in 1959; and the construction of the Kiley, a brand new, luxury multifamily property, despite having to navigate through the challenges posed by the Historic Preservation Review Board's (HPRB) review process. Situated on the site adjacent to Capitol Park Tower, just two blocks from the subject property, the Kiley is also located in the Southwest Waterfront neighborhood and features 315 brand new apartment units. Capitol Park Plaza & Twins are not subject to review by the Historic Preservation Review Board.
Following the incredible amount of development activity in the submarket and significant transportation infrastructure investments, Capitol Park Plaza & Twins' significant scale provides a developer with a fantastic opportunity to leave their mark on the Southwest Waterfront/Navy Yard submarket.
About Marcus & Millichap (NYSE: MMI): With over 2,000 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 9,726 transactions in 2019 with a value of approximately $50 billion. Marcus & Millichap 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