National real estate investor, Canyon-Johnson Urban Funds, has sold Park Place at Petworth Metro, a 161-unit luxury mixed-use apartment community in northwest Washington, DC to TA Associates. Randal Howard, Mid-Atlantic Regional Partner of Moran & Company, represented the seller in the transaction. The sale closed on October 6th, 2014 for $62 million ($385,093 per unit).
Completed in 2010, Park Place at Petworth Metro is a true Transit Oriented Development (TOD) designed with the discerning Millennial renter in mind. Located in the Petworth submarket at the intersection of Quincy Street and Georgia Avenue, the property is situated directly above the Petworth Metro Station on the Green and Yellow lines and includes a ground floor level dedicated to retail. The property is also located just one block away from a newly constructed, highly appointed 55,000 square foot Safeway supermarket.
The Petworth submarket, like many urban infill locations within the greater DC area, is experiencing unprecedented renter demand driven primarily by the influx of Millennials seeking residence in the urban core. In fact, DC ranks first nationally in overall volume of the Millennial demographic with 16% of the region’s population between the ages of 25 and 34. This cohort is seeking rental living options that are well-amenitized, within close proximity to job centers, and provide walkable access to nearby retailers and restaurants. Testament to the growing popularity of Petworth is the fact that it was named the number one U.S. market for home flipping in 2013 with an average gain of $312,400 from a home flip. During that same time period, average gain for a home flip in the greater DC metro was $104,100.
According to Randal Howard, “Park Place at Petworth Metro is well-located in a submarket that is undergoing a meaningful transformation, and garnering attention from both renters and institutional multifamily investors alike. Today, residents of Park Place not only have access to walkable amenities in the submarket, but also benefit from convenient access to nearby job centers and neighborhoods including the well-established U Street corridor.” In regards to institutional investor attention in the DC Metro area, Howard explains that, “The purchase of Park Place by an institutional investor such as TA Associates is the second major transaction in the Petworth submarket in just three months. In July, Principal Financial acquired The Swift, a brand new 218-unit building located one block north of Park Place for $75 million ($344,037 per unit). Both transactions confirm that investors remain extremely bullish on the Washington, DC apartment market due to its strength and vitality as evidenced by record levels of absorption topping 13,000 units. TA Associates is well-positioned to realize both short and long-term benefits from this acquisition and will surely uncover additional value by optimizing the mix of ground-floor retail options at the property.”
About Moran & Company
Moran & Company (“Moran”) is the nation’s premier multifamily brokerage firm. It focuses all of its energies on multifamily assets and mixed-use assets with significant multifamily components. Led by nine regional partners, Moran’s brokerage team leverages its apartment and capital markets expertise with its extensive network of relationships to execute complex sale and capitalization assignments. While investment sales account for the majority of the Company’s transaction volume, Moran also assists owners with the sale of land entitled for the development of new apartment properties and assists developers in sourcing joint venture equity. Moran is often retained for its extensive experience with pre-sales or early sales as well.