646 NEWTON PLACE NW COLUMBIA HEIGHTS WASHINGTON, DC REALTY ADVISORS

Transcription

1 646 NEWTON PLACE NW COLUMBIA HEIGHTS WASHINGTON, DC REALTY ADVISORS

2 646 NEWTON PLACE NW PAGE 1 Offering Memorandum Exclusively Presented By: REALTY ADVISORS ANDREW MCALLISTER amcallister@macrealtyadvisors.com BRUCE LEVIN blevin@macrealtyadvisors.com CONFIDENTIALITY STATEMENT The material contained in this Offering Memorandum is confidential, furnished solely for the purpose of considering the opportunity to develop the Property described herein, and is not to be used for any other purpose or made available to any other person without the express written consent of MAC Realty Advisors, LLC ( Broker ). The information contained herein has been obtained from sources that we deem to be reliable, and we have no reason to doubt its accuracy. However, no warranty or representation, expressed or implied, is made by the Seller or Broker or any related entity as to the accuracy or completeness of the information contained herein, including but not limited to financial information and projections, and any engineering and environmental information. Prospective purchasers should make their own investigations, projections, and conclusions. It is expected that prospective purchasers will conduct their own independent due diligence concerning the Property, including such engineering inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous materials. MAC Realty Advisors represents the Seller in this transaction and makes no representations, expressed or implied, as to the foregoing matters. GEORGIA AVENUE NW

3 TABLE OF CONTENTS PAGE 2 1 EXECUTIVE SUMMARY 8 PROPERTY ANALYSIS 15 LOCATION 17 MARKET ANALYSIS 37 MAC REALTY ADVISORS 38 CONTACT INFORMATION The Property is half a mile from DC USA, the largest retail development in DC

4 EXECUTIVE SUMMARY PAGE 1 ADDRESS 646 Newton Place NW Washington, DC Overview MAC Realty Advisors, LLC, as exclusive agent, is pleased to offer the opportunity to purchase 646 Newton Place NW ( Property ) located in the Park View neighborhood of the Columbia Heights / Petworth submarket. The Property is a short six minute walk from the Georgia Avenue-Petworth Metro Station in Washington, DC. The Property is an improved building with a Certificate of Occupancy for 13 apartment units. SQUARE / LOT 3808 / 0822 ZONING RF - 1 The Park View neighborhood was founded in Today, it is a thriving and diverse community of socially and politically active residents. The neighborhood has very strong demographics with some of the highest household incomes and educational attainment statistics in the district, making it one of Washington, DC s top neighborhoods to live. Highlights LAND AREA UNITS SF PRIME LOCATION Walkscore.com gives the Property s location a rating of 95 out of 100, classifying it as a Walkers Paradise. The Property is located in the Park View neighborhood of the Columbia Heights / Petworth submarket, which features excellent neighborhood amenities such as parks, restaurants, local boutiques, and national banks. Over the past several years, these neighborhoods have experienced a surge in new investment and have rapidly become some of Washington s most desirable young neighborhoods. The Property is a four minute walk from a CVS Pharmacy and is less than a half mile walk (nine minutes) from a Safeway Grocer, both of which are conveniently located on Georgia Avenue. In addition, the Property is just blocks from some of the city s best new restaurants including Chez Billy and Petworth Citizen & Reading Room, also along Georgia Avenue. Several blocks west, the main commercial section of Columbia Heights offers an eclectic range of dining options. Finally, in 2008, DC USA opened along 14th Street and includes a Target, Best Buy, and Marshalls, among other shopping and retail options. WALK SCORE 95 WALKER S PARADISE TRANSIT SCORE 75 EXCELLENT TRANSIT BIKE SCORE 91 BIKER S PARADISE

5 EXECUTIVE SUMMARY PAGE 2 TRANSIT - ORIENTED The Property is a convenient six minute walk from the Georgia Avenue-Petworth Metro Station on the Green and Yellow lines. Furthermore, the Property is located within 0.2 miles of seven Metro bus routes, two CarShare Stations, and a Bikeshare Station. The Property is well positioned to capitalize on the high demand for transit-oriented housing. The U.S. Census Bureau reports that 14.1 percent of workers in the Washington, D.C. metro area use public transportation, the third highest percentage among major metropolitan areas. Additionally, 4.1 percent bike or walk to work every day and over 37.9 percent of households in Washington, D.C. do not even own a car. CoStar reports a 28 percent to 40 percent premium on properties that are within walking distance of major employment centers or are along Metro rail lines or Metro bus routes. PROXIMITY TO DOWNTOWN DC The Property is close to the heart of downtown D.C., giving it access to 450,000 government and private sector jobs, national monuments and landmarks (including the National Mall, the White House, and the US Capitol), global cultural amenities (such as the Smithsonian Institution and the National Gallery), and incredible retail and entertainment amenities. RESIDENTIAL HOTSPOT The Property is strategically situated near the Georgia Avenue corridor, and is surrounded by dozens of new residential developments. This submarket has experienced impactful change over the past several years and is benefiting from additional units of Class A retail delivered in DC over the past three years. Park View is emerging as a vital urban neighborhood that delivers all the advantages of city living. New investments have brought new residences, businesses, and restaurants to this area. Since 2005, more than 850 new residential units have been built within a half-mile radius of the Georgia Avenue-Petworth Metro Station and another 850 units are slated for development in the coming years. Directly next to the Property, developer Andrew Rubin is set to break ground on 4 townhouse properties approximating 2,200 SF with projected outsales of $850,000 - $1,000,000. Several blocks east of the Property, 80-acres of the Armed Forces Retirement Home campus are slated to be transformed into a mixed-use development comprised of over four million square feet of residential housing, retail amenities, office space, and medical facilities. Finally, less than a half mile south, the 25-acre former McMillan Sand Filtration site will be redeveloped into a visionary mixed-use destination including over 500 residential units, one million square feet of healthcare facilities, a 50,000 square foot grocery, and 30,000 square feet of neighborhood retail space.

6 EXECUTIVE SUMMARY PAGE 3 Petworth / Parkview New Residential Developments Project Park Morton 3619 Georgia Avenue NW 4328 Georgia Avenue NW 3701 New Hampshire Avenue NW 713 Lamont Street Status ANC Approved Site Plan Under Construction Awaiting BZA Approval Acquiring Permits Under Construction Developer Park View Community Partners (The Community Builders and Dantes Partners) The Warrenton Group and Elmira Gwynn PGN Architects Rooney Properties & PGN Architects The Holladay Corporation Details Three-part project that originated with the New Communities initiative intended to replace the Park Morton public housing complex with a mixed-income community, designed by Torti Gallas Urban. Phase I: 265 total apartment units, 8 three-bedroom rowhouses. Phase II: 142-unit apartment building Phase III: 29 townhouses and 18 stacked flats. Planned six-story, 27-unit condominium building with roughly 2,400 SF of ground floor retail. Bonstra I Haresign Architects designed the project. Planned 14-unit condominium building with 2,800 SF of ground floor retail. Planned to replace the Sweet Mango Cafe with a 65 foot tall, 21-unit condominium project with ground floor retail. The development team plans to break ground Q4 2016; pre-sales will begin in early Three-building, 225-unit residential project. First building will be a 35 foot-tall 9-unit garden style residential walk-up with 14 surface parking spaces. Second structure is the four-story Linens of the Week/Alsco building. Third structure will be a five-story residential building with 88 parking spaces across one ground level and a strip of 11 single story-plus-loft rowhouses.

7 EXECUTIVE SUMMARY PAGE Georgia Avenue The Lamont The V on Georgia Avenue 3831 Georgia Avenue 3825 Georgia Avenue Filed PUD Secured Permits Delivered Delivering Q Under Construction Zuckerman Partners Brick Lane ASG Capital Partners Murillo Malnati Group Donatelli Development and Mosai Urban Partners Proposal intends to create an 87 foot-tall building with an estimated 105 apartments with 3,816 square feet of retail and 36 parking spaces. Brick Lane has secured raze permits to develop a nine-unit apartment building with ground-floor retail. Nelson Architects designed the project, which is also intended to have sidewalk patio space. Peter Fillat Architects designed this planned six-story, 20-unit condominum building. The units will be an even mix of one and two bedrooms; an 1,800 square-foot cafe with outdoor seating is planned for the ground floor. Latney s Funeral Home is slated to be replaced by a six-story mixed-use development. Murilo Malnati Group will deliver 20 residential units atop approximately 1,488 square feet of ground floor retail. This project will be a 32-unit apartment builing. Seven of the unites will be designated for households earning up to 60 percent AMI; the five-story building could be completed as early as February 2017.

8 EXECUTIVE SUMMARY PAGE 5 Development Map Upshur Street NW 11 Kansas Avenue NW Quincy Street NW New Hampshire Avenue 12 Quebec Place NW 14th Street NW 646 NEWTON PLACE 13th Street NW 3 15 Sherman Avenue NW Georgia Avenue Otis Place NW 16 Park Road NW Newton Place NW Warder Street NW Park Place NW Lamont Street NW Kenyon Street NW Irving Street NW Columbia Road NW

9 EXECUTIVE SUMMARY PAGE 6 Development Pipeline Map: Project: Type: Status: Georgia Avenue 21 Condo Units Project Complete Georgia Avenue NW 26 Condo Units Project Complete Monroe Street NW 28 Condo Units Project Complete 4 Griffin Apartments Georgia Avenue NW 49 Apartment Units Project Complete Georgia Avenue NW 210 Apartment Units, 60,000 SF Safeway Project Complete 6 3Tree Flats Georgia Avenue NW 130 Apartment Units, 28,000 SF Community Center Project Complete 7 The Avenue Georgia Avenue NW 83 Apartment Units, 2,300 SF Retail Project Complete 8 The Heights Georgia Avenue NW 60 Apartment Units, 10,000 SF Retail Project Complete 9 Fahrenheit Condos Georgia Avenue NW 31 Condo Units, 3,500 SF Retail Project Complete 10 Lamont Street Lofts Lamont Street NW 38 Loft Apartments Units Project Complete Apartments Georgia Avenue NW 72 Apartment Units, 10,000 SF Retail Project Complete 12 Park Place Quincy Street NW 161 Apartments Units, 17,000 SF Retail Project Complete 13 Murray s Georgia Avenue NW 100 Apartment Units Under Construction Georgia Avenue NW 31 Apartment Units Under Construction Morton Street NW 26 Condo Units Project Planning Phase Park Road NW 40 Residential Units Under Construction Additional Development

10 EXECUTIVE SUMMARY PAGE 7 Offer Guidelines Offer Submissions Offers should be submitted by to: Andrew McAllister, Bruce Levin, and/or Bill Gribbin. Offers Should Include Purchase Price Study Period Closing Period Deposit Sources of funds Offer Deadline Offers will be accepted and presented to the Owner on a rolling basis with an offer deadline of Wednesday, April 4th. Lead Brokers Andrew McAllister amcallister@macrealtyadvisors.com Bruce Levin blevin@macrealtyadvisors.com Tours & Questions Bill Gribbin bgribbin@macrealtyadvisors.com Property Tours Prospective purchasers are encouraged to visit the Property prior to submitting offers. All Property tours must be arranged through MAC. Tours will take place between 7:30AM - 9AM Monday through Thursday. Please contact Bill Gribbin by phone or by at bgribbin@macrealtyadvisors.com. Seller s Prerogative The Seller reserves the right to reject any and all proposals or to terminate discussions with any party at any time during the marketing period. Co-Broker Commission No brokerage commission or finder's fee shall be payable to any broker, agent, or person representing a purchaser. Any broker representing a purchaser must look to purchaser for such compensation.

11 PROPERTY ANALYSIS PAGE 8

12 PROPERTY ANALYSIS PAGE 9

13 PROPERTY ANALYSIS PAGE 10

14 PROPERTY ANALYSIS PAGE 11

15 PROPERTY ANALYSIS PAGE 12 ADDRESS 646 Newton Place NW Washington, DC SSL Square: 3038 Lots: 0822 LOT SQUARE FOOTAGE 0822: 2,607 SF ZONING Lot 0822: RF-1 Lot: 0822 MAX LOT OCCUPANCY ALLOWED Lot 0822 Street Front Lot: 60% MAX HEIGHT Lot 0822: 3 Stories or 35 Feet Lot: 0823 UNIT MIX STUDIO 3 ONE BEDROOM 7 ONE BEDROOM, DEN 2 TWO BEDROOM 1

16 PROPERTY ANALYSIS PAGE 13 The Property is zoned RF-1, which the D.C. Office of Zoning defines as the following: Purpose and Intent: The purpose of the RF-1 zone is to provide for areas predominantly developed with attached row houses on small lots within which no more than two (2) dwelling units are permitted. In the RF-1 zone, two (2) dwelling units may be located within the principal structure or one (1) each in the principal structure and an accessory structure. A building or structure existing before May 12, 1958 in the RF-1 zone may be used for more than two (2) dwelling units pursuant to Subtitle E, Chapter 7. Accessory dwelling units shall not be permitted in a dwelling unit in the RF-1 zone. Existing Non-Conforming Building: The existing building is substantially non-conforming with the R-4 zone regulations. In particular, it is well in excess of the maximum lot coverage of 60%, and far in excess of the maximum unit count, which is 1 per 900 land square feet. This would allow 2 units as of right on the front lot, or a total of 6 if the lots were combined. Source: ZONING COMMISSION, District of Columbia

17 PROPERTY ANALYSIS PAGE 14 Property Features: Separately metered gas and electric 13 electric meters (1 per unit) & 1 main electric meter for hallways. Each electric meter has an individual breaker box in unit 646 Newton Place NW Year Built: 1928 Washington, D.C Projected Sales Unit Type Size Sales Price Price/SF STUDIO 436 $250,000 $573 ONE BEDROOM 644 $350,000 $543 TWO BEDROOM 754 $475,000 $630 Average 611 $358,333 $586 Prior owner increased all electric to 100AMPS 13 gas meters (1 per unit) & 1 main gas meter Upper units all have hardwood flooring Membrane roof Brick exterior Product Type: Parking: Total Units: Closest Metro: Mid-rise Street 13 Georgia Avenue / Petworth

18 LOCATION PAGE 15 WALK SCORE 95 WALKER S PARADISE 11TH STREET NW The Coupe SPRING ROAD NW Raymond Rec Center 10TH STREET NW NEW HAMPSHIRE AVENUE NW Mom N Pop Antiques OTIS PLACE NW NEWTON PLACE NW Georgia-Petworth Subway PARK ROAD NW Sala Thai CVS The Looking Glass Lounge D.C. Reynolds GEORGIA AVENUE NW Manny & Olga s Yoga Heights ROCK CREEK CHURCH ROAD NW QUEBEC PLACE NW PRINCETON PLACE NW EatsPlace D.C. Fish in the Hood Top Spanish Cafe GEORGIA AVENUE NW PROPERTY PARK ROAD NW WARDER STREET NW Parkview Rec Center OTIS PLACE NW Maple Meridian Pint RedRocks MORTON STREET NW The Midlands Beer Garden Wall of Books Room 11 El Chucho Yum s Carryout

19 LOCATION PAGE 16 N 646 NEWTON PLACE Distances on Metro Destination Stops NoMa / Union Market 4 Union Station 5 Chinatown / Gallery Place 5 National Mall 6 Dupont Circle 8 Eastern Market 10 Reagan National Airport 11 Bethesda 12 Distances to Universities Stops University of Maryland 4 George Washington University 9 Georgetown University 9 American University 11

20 MARKET ANALYSIS PAGE 17 D.C. Area Payroll Job Growth ( ): Average Household Income: Jurisdiction D.C. Area US Business Actual Actual Projected $80,600 $125,292 $135,285 $56,600 $74,699 $84,910 Major Sector Employment Trends: Monthly Employees (August 2017 in 000s) Prof./Bus. Services 169 Education/Health 133 Federal Government 197 Leisure/Hospitality 81 Other 72 State/Local Government 40 Financial Services 30 Retail Trade 22 Information 17 Construction 15 Trans./Utilities 5 Wholesale Trade 5 Manufacturing 1 Total 787 Highest Average Household Income in the Nation The average household income in 2017 for the Washington, D.C. metro area was $125,292, the highest for all major metro areas and substantially higher than the nation as a whole. Delta Associates projects that D.C. household incomes will grow about 12 percent over the next four years. Most Educated Metro Area As of the 2016, 55 percent of the Washington, D.C. metro area s population has a bachelor s degree or higher, the highest percentage of all major metropolitan areas. Exceptionally Low Unemployment Rate The Washington, D.C. metro area unemployment rate stands at 3.7 percent (September 2017) compared to the national unemployment rate of 4.2 percent (September 2017). Historically, the unemployment rate in the Washington, D.C. metro area has been lower and significantly more stable than the national rate. Substantial Job Growth with More Projected During the 12 months ending in July 2017, 85,000 jobs were created in the Washington, D.C. metro area. The Washington, D.C. metro area grew at an extraordinary rate of 2.98 percent, while the rest of the nation grew at 1.8 percent, making the Washington D.C. metro area one of the fastest growing metropolitan areas in the nation. Best Places to Live In February of 2017, U.S. News and World Report released their 100 best places to live in the nation awards for Of the list of 100 cities in the US, Washington, D.C. was ranked 3rd, the highest of all major metropolitan cities in the country. Washington, D.C. ranked higher than major metropolitan cities such as San Francisco, New York, and Boston and was the highest of any city on the East Coast. Sources: Delta Associates, George Mason University Center for Regional Analysis, US Census Bureau, and US Bureau of Labor Statistics.

21 MARKET ANALYSIS PAGE 18 Major Corporations are Moving to the Washington, DC Metro Area Northrop Grumman, Volkswagen, Hilton Hotels, Nestle, and SAIC have all moved their corporate headquarters to the Washington, DC Metro area in the last several years. Additionally, Amazon.com, Bechtel, Siemens, and INOVA added thousands of new jobs in the Washington, DC Metro area in the last twelve months. The Washington, DC Metro area is the fourth largest employment market in the nation with more than three million jobs. High Demand for Transit-Oriented Housing The US Census Bureau reports that 14.1 percent of workers in the Washington, DC metro area use public transportation, the third highest percentage among major metro areas. An additional 4.1 percent of workers bike or walk to work every day and over 37.9 percent of households in Washington, DC do not even own a car. CoStar reports a premium on properties that are within walking distance of major employment centers or are along Metro Rail lines or Metro Bus routes. Room to Grow Washington, DC s population peaked at 802,000 in Decades of decline followed and the population only started to grow after the year In 2016, Washington, DC added 10,793 residents and now 681,170 people call Washington, DC home. Strong Momentum for High End Condos in DC Market Washington, D.C. Rental Market Statistics: Average Number of Days on the Market 8 Days (Shaw, 2016) Average Number of Days on the Market 36 Days (Washington, D.C., 2016) Average Price / SF for New Condos in Central D.C. $810 (2016) D.C. Area Average Sales Price / SF (Year End 2016) $532 Washington, D.C. New Condo Price Increase (2016) 22% Metro Accessibility Premium 40% Months of Supply (Year End 2016) 1.6 Source: Delta Associates, CoStar Group Washington, D.C. Population Growth ( ) As of Year End 2016, the number of settlements for condos between the prices $800,000 and $1.5 million increased by 17% year over year from Among this bracket, there was a 19% increase in settlements of condos over $1 million. This growth shows the strong momentum for high end condo product in the market. With the lack of condos on the market currently, the high end condo market will remain competitive, allowing for continued growth in the demand as well as outsale prices Source: Federal Reserve Economic Data

22 MARKET ANALYSIS PAGE 19 Rental Comparables Map N The Swift Griffin 646 Newton Place Park Place Allegro Highland Park Capitol View View 14

23 MARKET ANALYSIS PAGE 20 Rental Comparables The Swift The Harper The Griffin Highland Park Park Place Allegro Capitol View Neighborhood Petworth 14th Street Petworth Columbia Heights Petworth Columbia Heights 14th Street Units Year Built Leased (%) 97% 99% 97% 99% 94% 93% 96% Average Rent $2,269 $2,378 $2,402 $2,476 $2,503 $2,618 $3,448 Average Unit Size 757 SF 425 SF 827 SF 753 SF 844 SF 738 SF 753 SF Average Rent/SF $3.00 $5.60 $2.90 $3.29 $2.97 $3.55 $4.58 Developer / Owner Principal Global Investors Keener Managment Pollinger Company Donatelli Development TA Associates Realty PGIM Real Estate UDR

24 MARKET ANALYSIS PAGE 21 Rental Comparables STUDIO INCREASING RENT (PER UNIT) Allegro The Swift The Griffin Highland Park The Harper Capitol View Number of Units Total Units Average Size 484 SF 566 SF 599 SF 472 SF 355 SF 504 SF Average Rent $1,772 $1,866 $1,950 $1,999 $2,378 $2,442 Average Rent / SF $3.66 $3.30 $3.26 $4.24 $6.70 $4.85

25 MARKET ANALYSIS PAGE 22 Rental Comparables ONE BEDROOM / ONE BATHROOM INCREASING RENT (PER UNIT) Park Place Allegro The Swift Highland Park The Griffin Capitol View The Harper 1 BR Units Total Units Average Size 684 SF 605 SF 694 SF 621 SF 833 SF 685 SF 578 SF Average Rent $1,997 $2,113 $2,152 $2,196 $2,425 $3,112 $3,117 Average Rent / SF $2.92 $3.49 $3.10 $3.54 $2.91 $4.54 $5.39

26 MARKET ANALYSIS PAGE 23 Rental Comparables Allegro 646 Newton - Unit Mix th Street NW Year Built 2010 Washington, D.C Leased 98.7% Unit Type # Average Size Average Rent Rent/SF 646 Newton Avenue NW Year Built 1928 Washington, D.C VACANT Studio SF $1,785 $3.69 1BR / 1BA SF $2,115 $3.50 1BR / 1BA & Den SF $2,443 $3.38 2BR / 2BA SF $2,907 $3.34 Penthouse SF $3,289 $3.58 Total / Average SF $2,536 $3.47 Unit Type # Market Rent Voucher Rent Studio 3 $1,350 $2,545 1 BEDROOM 7 $1,500 $2,674 1 BEDROOM, DEN 2 $1,750 N/A Concessions: Parking: Storage: Pets: Utilities: Amenity Fee: Application Fee: None $195 / month $50 - $150 / month $500 fee, $50 / pet / month Residents pay all $500 $75 2 BEDROOM 1 $1,950 $3,087 Total / Average 13 $1,538 Amenities: Lounge, fitness center, monitored security available, controlled access, business center with WiFi, lounge, media center Room Features: Granite countertops, stainless steel appliances, washer dryer in each unit, patio or balcony in select units

27 MARKET ANALYSIS PAGE 24 Highland Park The Swift 1400 Irving Street Year Built 2007 Washington, D.C Leased 99.5% Unit Type # Average Size Average Rent Rent/SF Studio SF $1,670 $3.82 1BR / 1BA SF $2,243 $3.64 1BR / 1.5BA & Loft SF $2,897 $3.13 1BR / 2BA & Loft 11 1,007 SF $3,659 $3.63 1BR / 1BA & Loft 11 1,207 SF $2,553 $2.12 1BR / 2BA & Den 21 1,175 SF $3,058 $2.60 2BR / 2BA 83 1,024 SF $3,286 $3.21 2BR / 2BA & Den 9 1,108 SF $3,863 $3.49 2BR / 2BA & Loft 1 1,160 SF $4,419 $3.81 Total / Average SF $2,487 $3.31 Concessions: Parking: Storage: Pets: Utilities: Amenity Fee: Application Fee: None $200 / month $50 / month $250 fee, $35 / pet / month Residents pay all $500 Amenities: Atrium with aquarium, clubhouse, fitness center, monitored security available, controlled access, media center Room Features: Granite countertops, stainless steel appliances, washer dryer in every room, patio or balcony in select units $ Georgia Avenue NW Year Built 2015 Washington, D.C Leased 94.5% Unit Type # Average Size Average Rent Rent/SF Studio SF $1765 $3.12 1BR / 1BA SF $2,123 $3.06 1BR / 1BA & Den SF $2,359 $2.76 2BR / 2BA 40 1,050 SF $2,674 $2.55 Total / Average SF $2,203 $2.91 Concessions: Parking: Storage: Pets: Utilities: Application Fee: Amenity Fee: None $175 / month $150 / month $500 fee, $50 / month Residents pay all $60 $500 Amenities: Rooftop deck, clubhouse, fitness center, monitored security available, controlled access, WiFi in lobby Room Features: Wood-style plank floors, quartz countertops, stainless steel GE appliances, washer dryer in each unit, patios and balconies in select units

28 MARKET ANALYSIS PAGE 25 Park Place The Griffin 3801 Georgia Avenue NW Year Built 2011 Washington, D.C Occupancy 97.0% 850 Quincy Street NW Year Built 2010 Washington, D.C Occupancy 95.7% Unit Type # Average Size Average Rent Rent/SF 1BR / 1BA SF $1,978 $2.89 1BR / 1BA & Den SF $2,624 $3.25 1BR / 2BA & Den SF $3,304 $3.55 2BR / 1BA SF $2,237 $2.48 2BR / 2BA 59 1,056 SF $3,023 $2.86 3BR / 2BA 1 1,198 SF $2,548 $2.13 Total / Average SF $2,454 $2.90 Concessions: Parking: Storage: Pets: Utilities: Application Fee: Amenity Fee: 1 month off $175 / month $35 - $125 / month $250 fee, $50 / month Residents pay all $50 $500 Amenities: Rooftop deck, clubhouse, fitness center, monitored security available, controlled access, WiFi in lobby Unit Type # Average Size Average Rent Rent/SF 1BR / 1BA SF $1,950 $3.26 1BR / 1BA & Den SF $2,425 $2.91 2BR / 2BA 10 1,063 SF $2,748 $2.59 2BR / 2BA & Den 5 1,112 SF $3,167 $2.85 Total / Average SF $2,402 $2.90 Comments Concessions: None Parking: $175/month Storage: $35 - $150 Pets: $250 Non-Refundable, $50/pet/month Utilities: Residents Pay Alll Application Fee:$50 Amenity Fee: $250 Amenities: Stainless Steel Appliances, Zodiaq Countertops, Travertinee Tile Bathrooms, Wood Floors, Stacked Bosch Washer/Dryer, Private Roof Deck/Balcony/ Patio In Select Units, Rooftop Deck, Panoramic Views, Monitored Security Available, Controlled Access, Verizon FiOS Room Features: Stained concrete / carpeted floors, granite countertops, stainless steel GE appliances, washer dryer in each unit, patios and balconies in select units

29 MARKET ANALYSIS PAGE 26 Voucher Rental Rates Below are the maximum voucher rents for the Columbia Heights neighborhood in DC. Bed(s) With All Utilities Without Utilities 0 $2,545 $2,464 1 $2,674 $2,573 2 $3,087 $2,935 3 $4,065 $3,825 4 $5,046 $4,793 5 $5,803 $5,500

30 MARKET ANALYSIS PAGE 27 Condominium Comparables Map N The Gibson 646 NEWTON PLACE The Whitney Row The Park Lincoln Morton Street Mews 526 Lamont The Warder Flats

31 MARKET ANALYSIS PAGE 28 Condominium Comparables ONE BEDROOM INCREASING PRICE The Gibson (1BR) The Gibson (1BR) The Whitney Row (1BR) The Whitney Row (1BR) Total Units Size 472 SF 472 SF 783 SF 703 SF Sales Price $369,900 $409,900 $420,000 $427,500 Price / SF $784 $868 $536 $608 TWO - BEDROOM INCREASING AVERAGE RENT The Gibson The Park Lincoln The Warder Flats The Whitney Row Morton Street Mews Morton Street Mews Total Units Size 661 SF 967 SF 1,100 SF 1,035 SF 1,700 SF 1,700 SF Price $500,000 $599,000 $629,900 $630,000 $950,000 $960,000 Price / SF $756 $619 $573 $609 $559 $565

32 MARKET ANALYSIS PAGE 29 Condominium Comparables THE GIBSON THE WHITNEY ROW METRO STREET MEWS 3619 Georgia Avenue Year Built 2015 NW Washington, D.C Recent Sales Unit Type Size Sales Price Price/SF 1BR / 1BA 472 $349,900 $741 1BR / 1BA 472 $364,900 $773 1BR / 1BA 472 $369,900 $784 1BR / 1BA 472 $409,000 $867 2BR / 2BA 661 $459,900 $696 2BR / 2BA 661 $464,900 $703 2BR / 2BA 661 $489,000 $740 2BR / 2BA 661 $500,000 $756 Average 567 $425,938 $ Newton Place NW Year Built: 2015 Washington, D.C Recent Sales Unit Type Size Sales Price Price/SF 1BR / 1BA 783 $420,000 $536 1BR / 1BA 703 $427,500 $608 2BR / 2BA 890 $499,900 $562 2BR / 1BA 1,269 $530,900 $418 2BR / 2BA 1,035 $630,000 $609 2BR / 2BA 1,170 $649,000 $555 2BR / 2BA 1,400 $669,900 $479 Average 1,036 $546,743 $ Morton Street NW Year Built: 2016 Washington, D.C Recent Sales Unit Type Size Sales Price Price/SF 2BR / 2BA 1,124 $720,000 $641 2BR / 2BA 1,700 $960,000 $565 2BR / 2BA 1,700 $960,000 $565 2BR / 2BA 1,700 $960,000 $565 2BR / 2BA 1,700 $950,000 $559 3BR / 3BA 1,900 $1,150,000 $605 Average 1,637 $950,000 $580 Product Type: Low-rise / townhomes Product Type: Mid-rise Product Type: Mid-rise Parking: Garage Parking: Garage Parking: Garage Total Units: 24 Total Units: 31 Total Units: 9 Closest Metro: Georgia Avenue / Petworth Closest Metro: Georgia Avenue / Petworth Closest Metro: Georgia Avenue / Petworth

33 MARKET ANALYSIS PAGE 30 THE PARK LINCOLN THE WARDER FLATS 526 LAMONT 3612 Park Place NW Year Built: 2015 Washington, D.C Warder Street NW Year Built: 1909 Washington, D.C Year Renovated: Lamont Street NW Year Built 2015 Washington, D.C Recent Sales Unit Type Size Sales Price Price/SF 2BR / 2BA 967 $599,000 $619 2BR / 2BA 1,468 $750,000 $511 3BR / 3BA 1,322 $645,000 $488 Average 1,252 $664,667 $531 Product Type: Parking: Total Units: Closest Metro: Low-rise Garage 5 Georgia Avenue / Petworth Recent Sales Unit Type Size Sales Price Price/SF 2BR / 2BA 1,542 $549,900 $357 2BR / 2BA 1,100 $629,900 $573 2BR / 2BA 1,100 $629,900 $573 3BR / 3BA 1,240 $617,900 $498 2BR / 2BA 1,100 $570,000 $518 Average 1,216 $599,520 $493 Product Type: Parking: Total Units: Closest Metro: Low-rise Streett 5 Georgia Avenue / Petworth Recent Sales Unit Type Size Sales Price Price/SF 3BR / 3BA 1,835 $709,900 $387 3BR / 3BA 1,883 $769,900 $409 3BR / 3BA 1,830 $729,900 $399 3BR / 3BA 1,848 $749,900 $406 3BR / 3BA 1,859 $770,000 $414 3BR / 3BA 1,883 $779,900 $414 Average 1,856 $751,583 $405 Product Type: Parking: Total Units: Low-rise / townhomes Garage 6 Closest Metro: Georgia Avenue / Petworth

34 MARKET ANALYSIS PAGE 31 Condominium Comparables Map 1436 Ogden Street 646 NEWTON PLACE 1514 Newton Street 1417 Newton Street 1340 Monroe Street 1390 Kenyon Street 3205 Georgia Avenue th Street 836 Lamont Street

35 MARKET ANALYSIS PAGE 32 Condominium Comparables (Within 2-mile radius of Property) Condo Address Sale Price SF Price/SF BD BA Sale Date Year Built 3205 Georgia Avenue NW 503 $509, $ /26/ Monroe Street NW 301 $565, $ /9/ Newton Street NW 301 $569, $ /31/ Georgia Avenue NW 203 $424, $ /26/ Newton Street NW 201 $560, $ /31/ Kenyon Street NW 102 $435, $ /7/ Kenyon Street NW 519 $399, $ /2/ th Street NW 107-N $380, $ /30/ th Street NW 108-N $350, $ /25/ th Street NW 106-N $379, $ /25/ Lamont Street NW B $625, $ /3/ Georgia Avenue NW 407 $500, $ /21/ Georgia Avenue NW 404 $437, $ /15/ Georgia Avenue NW 504 $445, $ /31/ th Street NW 206-N $470, $ /2/ th Street NW 205-N $475, $ /17/ th Street NW 305-N $505, $ /14/ Average: $439, $

36 MARKET ANALYSIS PAGE 33 Land Sales Comparables Map N 646 NEWTON PLACE Portner Place th Street Patterson House ABC Automotive th Street 2601 Virginia Avenue

37 MARKET ANALYSIS PAGE 34 Land Sales Comparables th Street th Street Portner Place 2601 Virginia Ave Patterson House ABC Automotive Address th Street NW Washington, D.C th Street NW Washington, D.C U Street NW Washington, D.C Virginia Ave NW Washington, D.C. 15 Dupont Circle NW Washington, D.C Pennsylvania Ave NW Washington, D.C. Land Area 0.58 acres 0.19 acres 0.25 acres 0.47 acres 0.32 acres 0.17 acres Units Purchase Price $25,500,000 $3,864,405 $55,000,000 $36,000,000 $20,000,000 $7,500,000 Price/FAR SF $182 $189 $238 $245 $393 $405 Price / Unit $179,577 $143,126 $203,704 $144,000 $222,222 $833,333 Construction Type Wood / Concrete Steel Steel Concrete Concrete Concrete Buyer Jefferson Apartment Group Saul Investment Group TCC Urban Investment Partners Saul Investment Group Eastbanc Close Date TBD July 2013 July 2016 August 2016 June 2014 March 2015

38 MARKET ANALYSIS PAGE 35 Investment Sales Comparables Map N 1433 Spring Road Taylor Street 1316 Spring Road 810 Otis Place 646 NEWTON PLACE th Street The Centrie 3506 New Hampshire Avenue 2914 Sherman Avenue 1012 Harvard Street 1315 Clifton Street 500 U Street

39 MARKET ANALYSIS PAGE 36 Investment Sales Comparables Property: Property Type: Close Date: Year Built: Sale Price: Units: Sale Price Per Unit: Price Per Gross SF: 1111 Lamont Street NW Multifamily 01/30/ $3,250, $250,000 $ th Street NW Multifamily 10/29/ $3,242, $154,405 $ Otis Place NW Multifamily 10/10/ $655,500 4 $168,875 $ Taylor Street NW Multifamily 09/1/ $2,700, $135,000 $ Spring Road NW Multifamily 10/1/ $2,550, $170,000 $ U Street NW Multifamily 4/28/ $1,700, $170,000 $ Spring Road NW Multifamily 1/8/ $1,900, $172,727 $ R Street NW Multifamily 4/1/ $16,500, $187,500 $ New Hampshire Avenue NW Multifamily 1/7/ $879,000 4 $219,750 $ Clifton Street NW Multifamily 4/30/ $7,000, $225,806 $ Sherman Avenue NW Multifamily 6/25/ $3,400, $250,000 $ Harvard Street NW Multifamily 1/20/ $1,450,000 4 $362,500 $ Average: $3,768, $189, $290.64

40 MAC REALTY ADVISORS PAGE 37 MAC Realty Advisors LLC is a Washington, D.C.-based, full-service real estate advisory firm specifically focused on the multifamily, retail, and mixed-use developer and owner community. Our key services include investment sales, land sales, debt & equity placement, and advisory services. SALES DEBT & EQUITY PLACEMENT MAC AFFORDABLE HOUSING PRACTICE (MAHP) Investment Sales Land Sales Ground Leases Acquisition Construction Recapitalizations Joint-Ventures Permanent Mezzanine Sales Financing Construction or Conversion Repositioning Post-Compliance Properties MAC assists clients in obtaining financing from multiple sources: Fannie Mae, Freddie Mac, FHA, credit companies, REITs, commercial banks and private investors. The key members of MAC have acted as principals in ground-up development, land development, core/core-plus investing and real estate lending. MAC s Principals have closed more than $5 billion of transactions since 2000.

41 CONTACT INFORMATION PAGE Wisconsin Avenue Suite 560 West Bethesda, MD REALTY ADVISORS Bruce Levin Executive Director Bill Gribbin Director Matt Weber Vice President Nicholas Rubenstein Director Jessica Peters Marketing Director Andrew McAllister Executive Director Scott Davidson Analyst Cliff Ayers Associate

42 REALTY ADVISORS 7315 Wisconsin Avenue, Suite 560 West Bethesda, Maryland Main: