471-473 H Street, NW Washington, DC OFFERING MEMORANDUM Buildings for Sale Penn Quarter/China town
CONTENTS Offering Terms 3 Executive Summary 4 Property Summary 5 Floor Plans 6 Investment Highlights 7 Location Overview 8 Economic Overview 9 CONTACT Lisa Benjamin Senior Managing Director 202.471.3009 lbenjamin@ngkf.com Bill Zonghetti Executive Managing Director 202.292.0101 bzonghetti@ngkf.com 471-473 H Street NW Offering Memorandum / 2
Offering Terms Ownership Loewinger Brand & Kappstatter, Chtd Interest Offered 100% Fee Simple Offering Price Upon Request Bid Deadline A formal call for offers letter will be distributed at the appropriate time. All submissions must be faxed, emailed or hard copy delivered. Offers should be submitted in the form of a non-binding letter of intent and should specify the following: Purchase Price Study Period (if any) Closing Earnest Money Deposit Contingencies (if any) Sources of Funds (Equity and Debt, if applicable) Consents and/or approvals needed for closing Any other information having a direct bearing on the investor s/user s ability to close the proposed transaction 471-473 H Street NW Offering Memorandum / 3
Executive Summary Newmark Grubb Knight Frank is pleased to offer for sale the property located at 471-473 H Street, NW in Washington s Penn Quarter/Chinatown neighborhood. 471-473 H Street offers discriminating investors or users the opportunity to purchase a classic boutique building with unparalleled location and presence in DC s East End submarket. The buildings will be delivered vacant. Built in 1890, 471 and 473 H Street were originally constructed as two separate four story brick row houses totaling 8,100 SF. They have been connected from the interior to provide larger floor plates, while still maintaining separate entrances from the street. The handsome Romanesque style brick exterior features extensive detailing, large windows and bay window tier to maximize light and dimension. A columned portico highlights the entry into 471 H, while the entry to 473 H is set back from the sidewalk and offset by a bay window feature on all floors. Both buildings include English basements creating light filled lower levels with separate entries. Interior features include a grand staircase, large conference room, high ceilings and fireplaces. The 4,037 SF lot is well maintained and includes 6 parking spaces accessed from a wide public alley. The property is zoned C-2-C which is a mid density residential zone. Development densities are 2 FAR for commercial use and 6 FAR for residential. Additional development rights may be available. The subject property was most recently used as the offices for a mid sized law firm, which owned and occupied the buildings since 1975. The firm vacated the property earlier in 2016. Given the flexible zoning, the buildings 471-473 H Street NW Offering Memorandum / 4
Executive Summary can continue to operate as an office, or be converted to a residential use. The zoning provides for three times the density as a residential property although physical constraints and location within the Penn Quarter Historic District may limit ultimate density. The location of the property is unparalleled. With three Metro stations within several blocks, bus service, circulator bus service and abundant bike share stations 471-473 H Street has a Walk Score of 98 making this a Walker s Paradise. The Transit Score is 100 and bike score is 89. The investment potential of 471-473 H Street is tremendous. Owner/Users can benefit from extremely low interest rates and achieve costs of ownership that are less than leasing with the opportunity to gain appreciation. Investor/Developers may embark on interior cosmetic improvements to continue the property s use as commercial offices, or convert the buildings to residential apartments or condominiums. The strong location and on-site parking are significant benefits for any purchaser regardless of development plan. 471-473 H Street NW Offering Memorandum / 5
Property Summary PRESTIGIOUS LOCATION IN PENN QUARTER/CHINATOWN RARE PURCHASE OPPORTUNITY OF 8,100 SF OFFICE BUILDING ON 4,037 SF LOT. STATELY BUILDING WITH ABUNDANT LIGHT, HIGH CEILINGS, AND SIX PARKING SPACES Address: Ownership: Year Built: Building Area: Zoning: Submarket: 471-473 H Street, NW, Washington, DC Square 517, Lot 834, 835 Loewinger, Brand & Kappstatter, Chtd 1890, renovated multiple times 8,100 on 4,037 SF Lot C-2-C Penn Quarter/Chinatown Transportation: Two (2) blocks to Gallery Place Metro Five (5) blocks to Metro Center Four (4) blocks to Mount Vernon Square Metro Metro Bus Circulator Bus Smartbike stations are located throughout the neighborhood 471-473 H Street NW Offering Memorandum / 6
Floor Plan Basement 473 H Street 471 H Street 471-473 H Street NW Offering Memorandum / 7
Floor Plan 1 st Floor 473 H Street 471 H Street 471-473 H Street NW Offering Memorandum / 8
Floor Plan 2 nd Floor 473 H Street 471 H Street 471-473 H Street NW Offering Memorandum / 9
Floor Plan 3 rd Floor 473 H Street 471 H Street 471-473 H Street NW Offering Memorandum / 10
Zoning Plan 471-473 H Street NW Offering Memorandum / 11
Investment Highlights Building: Image: Location: Tenancy: Amenities: Area Development Parking: 8,100 SF Commercial Office Property on four floors with eleven bathrooms and rear parking lot Stately Romanesque architecture with bay windows, detailed moldings, extensive brickwork and 10 ceilings North side of H Street, NW between 5 th and 4 th Streets in bustling Penn Quarter neighborhood Property is vacant and ready for occupancy Verizon Center and dozens of retail stores, restaurants and hotels within blocks of building. Extensive new trophy office and residential development just north of the site between 5 th and 6 th Streets and K and Massachusetts Avenue Seven (7) parking spaces in rear accessed by public alley 471-473 H Street NW Offering Memorandum / 12
Location Overview 471 H Street is located in the most walkable neighborhood in Washington D.C. WALKER S PARADISE RIDER S PARADISE BIKER S PARADISE 98 Walk Score 100 Transit Score 90 Biker Score Walk Score 90-100 Walker s Paradise Daily errands do not require a car Transit Score 90-100 Rider s Paradise World-class public transportation Bike Score 90-100 Biker s Paradise Excellent bike lanes 471-473 H Street NW Offering Memorandum / 13
Economic Overview The Washington, DC metropolitan area continues to be one of the best performing economies in the country. It is driven by strong demographics, a diverse employment base fueled by both the private and public sectors, and the lowest unemployment rate in the nation for major metropolitan areas at 4.1% as of March 2016. The region, which includes the surrounding suburbs in Maryland, Virginia and West Virginia, with a median household income of $90,149, ranks highest among the nation s 25 most populous metro areas. Incomes in the metropolitan area grew by 34% from 2000 to 2012, compared to just 20.0% nationally. The region also boasts the most educated populations in the nation, with 25.3% of adults ages 25+ holding a bachelor s degree and 23.3% of adults ages 25+ holding a graduate or professional degree. With almost 3.2 million payroll jobs, the DC metropolitan area continues to rank in the top five largest job markets among metro areas, behind New York, the LA Basin and Chicago. Non-farm employment grew by 70,600 in 2015 or 2.3% compared to a national rate of 1.9%. A major contributing factor to the stability in the region is its consistently strong job market, a result of the presence of the federal government and a diverse economy based on technology, construction, healthcare and hospitality industries. 471-473 H Street NW Offering Memorandum / 14