Service. Success. Perfected.
Spotlight on Union Market, Washington, D.C. Retail
April 2015
Union Market
For 83 years, the 45-acre Union Market district, a vibrant,
multi-cultural center, has served as the historic food hub for
Washington, D.C. It now stands poised to emerge as a 21st
century focal point for industrial wholesale and specialized retail
food distribution. Strategically located at the intersection of two
major city thoroughfares, New York and Florida Avenues, and
nestled between NoMA, H Street NE, and Gallaudet University,
Union Market offers easy access to local residents and regional
shoppers. Gallaudet University, a federally chartered private
university for the education of the deaf and hearing-impaired
on a 99-acre campus, forms the eastern boundary of the
neighborhood. The community is served by the NoMa-Gallaudet
Metro Station, with 7,469 average weekday exits, and numerous
Metrobus lines. More than 336,243 residents live within three
miles of the community and the average household income is
$97,768. Currently, more than 100 businesses employ 1,500
people in food production and distribution.
Serving as the centerpiece of the neighborhood is the 69,353
square foot Union Market, known for its mix of eclectic foods and
homegrown fare. The South Carolina-based EDENS company
purchased the Market in 2007 and reopened it in 2012, revamped
as a showcase for 40 local and regional artisanal vendors of
products such as baked goods, fish, cheese, olive oil, spices,
and beer and wine, as well as numerous restaurants. Since then,
monthly sales at the market have more than tripled with monthover-month sales increasing from 12% to 15%. Union Market
has also become an informal incubator for area restauranteurs
and business owners. Companies such as Red Apron Butchery,
© 2015 The Greysteel Company LLC. All rights reserved.
Curbside Cupcake, and Takorean have opened their first physical
locations at the market before expanding throughout the region.
Union Market has been ranked by Bon Appétit magazine as “One
of the Top Five Food Halls in the Country.”
Mirroring the success of the Union Market, new development
continues to explode with a total of eight million square feet of
redevelopment planned for the immediate area. EDENS recently
obtained approval for adding an eight-screen movie theater above
the Market with an additional four stories of residential or office
space. The project’s second phase features a new building with
35,000 square feet of retail and 290,000 square feet of either office or
residential use, plus new underground parking. In addition, EDENS
plans a development at 1270 4th Street adjacent to the Market
with nearly 600 residential units in two buildings. Baywood Hotels
has two hotels (overnight and extended stay) under construction
totaling 230 rooms on the quickly-growing New York Avenue, NE
Corridor, with completion expected later this year. A new mixed-use
project, The Highline at Union Market, is planned for 320 Florida
Avenue, with up to 346 residential units and 8,472 square feet of
ground-floor retail for a total gross floor area of 227,089 square feet.
Union Market lies in the middle of the revitalized Capitol Hill/
Northeast D.C. submarket which commands average NNN retail
rents of $38.55 per square foot, a 37.6% increase over two years
from 2013 Q1, when average NNN rents were $25.92 per square
foot. In Q1 of 2015, for the first time in five years, the Capitol Hill
vacancy rate dropped below the average rate of the entire Greater
D.C. Market, to its current rate of 4.2%.
Spotlight Sales Comparables
April 2015
The report below features a sampling of properties sold within the last two months in Washington, D.C. and Virginia. Please note the different
locations and adjust comparisons accordingly. Also note that sales comparables provide a snapshot of recent transactions and are not a
perfect predictor of future market movement and behavior.
PNC BUILDING - DUPONT CIRCLE
MARVELOUS MARKET
1913 Massachusetts Avenue, NW
Washington, D.C. 20036
3215–3217 P Street, NW
Washington, D.C. 20007
GLA:
48,447 SF (23,524 SF Office)
GLA:
5,701 SF
Year Built:
1923
Year Built:
1900
Sale Date:
March 2015
Sale Date:
March 2015
Price:
$60,750,000
Price:
$6,000,000
$1,254
Price/SF:
$1,052
Occupancy:
100%
Occupancy:
-
Buyer:
L&B Realty Advisors
Buyer:
Neam Edmong J Trust
Seller:
PNC Bank
Seller:
Sivan Properties
Tenants:
PNC Bank, AT&T,
Sweetgreen, ShopHouse
Tenant:
Former Marvelous Market
Price/SF:
BROOKLAND PLAZA
CARTER’S CROSSING
3730–3748 10th Street, NE
Washington, D.C. 20017
27 S. Gateway Drive
Fredericksburg, VA 22406
GLA:
26,194 SF
GLA:
40,631 SF
Year Built/Renovated:
1938/2008
Year Built/Renovated:
2008/2009
Sale Date:
March 2015
Sale Date:
March 2015
Price:
$5,500,000
Price:
$5,920,000
Price/SF:
$210
Price/SF:
$146
Occupancy:
91%
Occupancy:
59%
Buyer:
Urban Investment Partners
Buyer:
Boosalis Management
Seller:
Slamen Jan
Seller:
Silver Companies
Tenants:
ICS, DC Homevet,
Brookland Market,
American Pizza
Tenants:
PetSmart, Nails For You,
Aladin’s Mediterranean Grill
SPRINGFIELD TOWN CENTER
BED BATH & BEYOND
6500 Springfield Mall
Springfield, VA 22150
2051 Chain Bridge Road
Vienna, VA 22182
GLA:
981,399 SF
GLA:
55,695 SF
Year Built:
2015
Year Built/Renovated:
1970/2000/2011
Sale Date:
March 2015
Sale Date:
February 2015
Price:
$465,000,000
Price:
$29,000,000
Price/SF:
$474
Price/SF:
$521
Occupancy:
81%
Occupancy:
100%
Buyer:
PREIT
Buyer:
Benderson Development Co.
Seller:
Vornado Realty Trust
Seller:
John Hechinger
Tenants:
Macy’s, Dick’s Sporting
Goods, Regal Cinema,
Nordstrom Rack, Target
(Shadow), JC Penney
(Shadow)
Tenant:
Bed Bath & Beyond
© 2015 The Greysteel Company LLC. All rights reserved.
Spotlight Exclusive Offering
April 2015
DURHAM PLAZA
Durham, North Carolina
INVESTMENT HIGHLIGHTS
• Grocery Anchored Retail Center – 234,500 square foot neighborhood center off major I-85 signalized junction—five buildings,
90% occupied on 30 acres.
• Landmark Destination – Long-time commercial center of a dense surrounding population—70,000 residents within three miles
and a Durham Area Transit Authority (DATA) bus stop in the Plaza.
• High-Volume Grocer – Compare Foods (43 locations) with above-average and historically rising sales, low occupancy-cost
ratio, and recent 10-year renewal.
• Diverse Tenant Mix – National and regional retailers including Big Lots (NYSE: BIG), Harbor Freight Tools, E.C. Barton Surplus
Warehouse, Kimbrell’s Furniture, Wells Fargo Bank, and many recent renewals.
• Value-Add Opportunity – Offered at significantly below replacement cost. Increase value by raising below-market rents and
leasing remaining 10% vacancy.
• Durham Area Rankings – Ranked Number One in “Best Mid-Sized City for Jobs” (Forbes Magazine) and ranked in “Top Ten
Best Places to Live” list (U.S. News and World Report). Nationally ranked Duke University and the Duke University Health
System employ 34,000.
• “The Research Triangle”– Centerpiece of Durham’s economy, nation’s largest high-tech research and production center with
170 companies and 42,000 employees. Additional 300 healthcare related businesses crown Durham “The City of Medicine.”
TRANSACTION TEAM:
CAPITAL MARKETS:
Gil Neuman
Managing Director
Richard Seybolt
Analyst
Mark Bittenbender
Director
Joyce Swain
Analyst
Anne Elizabeth Martin
Production Associate
Paul Pierre
Finance Analyst
Heather Leigh
Associate Creative Director
Sarah Cornejo
Senior Designer
Matt Schwartz
CEO
© 2015 The Greysteel Company LLC. All rights reserved.
7735 Old Georgetown Road
Suite 301
Bethesda, MD 20814
P. 202.280.2722
[email protected]
www.greysteel.com
Service. Success. Perfected.
D.C. License No: LL983371301
MD License No: 636050
VA License No: 0226023703