The development market is in full swing now with lots of land owners and developers making deals. After a long dry spell it seems like the perfect storm for experienced developers and sellers that have not seen a market for their land in several years. The lending environment and contractors wanting to get back to work has created a lot of recent activity at UrbanLand Company.
Here are a few deals that we have put together in the last several months:
435 R Street, NW – 5,800 Sq. Ft. of C2A land recently settled last month for $1,150,000. We have worked with this seller of an old dry cleaner site of the past 10 years. It needed a few hundred thousand dollars of remediation. What changed and allowed us to connect this seller to a developer client?
Lenders and buyers…For year’s banks were standing on their money and showed no appetite to close on land especially with environmental issues. This changed as market demand for new condo picked up. UrbanLand Company worked with an environmental remediation firm for years on the site to estimate the costs. All that paid off…we had ample data to entice both buyer and lender to pursue the project. A savvy developer managed the risk, got an acceptable phase II study during a reasonable feasibility period and settled on a great site.
306 & 308 K Street, NE –
Two R4 lots and a large alley parcel. This parcel was owned by a larger developer that developed a residential building next door. They had researched the development possibilities for all parcels. They determined that the since there was no 30′ alley the rear portion was of no use to a residential developer and completed a subdivision with two R4 lots on K Street and an alley lot that they would dispose of in a tax advantageous way.
They contacted UrbanLand Company to market the R4 lots for $350K each. We had several offers within two weeks – two from ULC clients and another working with another agent. During negotiations ULC suggested that the lead group make an offer on the alley parcel and re subdivide it to increase the size of the R4 lots. A plan for two 2,400 Sq. Ft. units on each lot and building storage units in the alley arose and the belief that units of that size with millions of Sq. Ft. of new office development a few blocks away and in the red hot H Street corridor could sell for as much as a townhouse. Sold and settled for $865,000 for all parcels.
1515 Rhode Island Avenue, NE – 7,090 Sq. Ft. of C2A land with an eight unit Shell on it. This took a little education on what is happening around the Rhode Island Avenue METRO and in Brookland but we sold it for $425K early this year.
215 Randolph Place, NE – 6 R4 lots in Eckington. This deal was land UrbanLand Company listed and sold to one of our clients two years ago.
With the increase in demand for land we approached our clients with an opportunity. Because of the new inclusionary zoning law which requires an affordable dwelling component on any new construction over 10 units, we brought the seller two separate buyers one for two lots and the other for the four. They are now under contracted with plans for 12 two level units…The asking price was $1,200,000.
1418 Florida Avenue, NW – Three unit occupied apartment building in the 14th corridor.
While this property was occupied ULC managed the TOPA rights and worked with all tenants to vacate which allowed for a sale. It settled in June for $845K.
On our horizon…a vacant 12 unit building in SE and a R4 lot in LeDroit Park. We are meeting with developers weekly to determine their acquisitions needs and are actively seeking to fill them. Feel free to call us at 202.320.9976 or email us at firstname.lastname@example.org and let’s tour some future development sites.