Progression Place Hits the Market
Are properties under construction the new wave of investment sales? After JBG sold the unfinished District apartments last month for $76M, Four Points LLC is now offering Progression Place,a 205-unit property in Shaw (1805 7th St)with 20k SF of retail set to deliver this July. Cassidy Turley's Chris Doerr (who's marketing Progression Place with colleague Rachel Ley) says that on the residential side in DC, shorter-term owners are willing to sell before construction's complete to avoid the city's lengthy TOPA process, which offers a building's residents the right to purchase the property.
Here's a look at the finished product. (Looks like a street cleaning day. Is that the same white sedan that was getting towed yesterday?) Chris says that while Progression Place won't garner a record price-per-unit like the District did (because of more affordable units and slightly lower rents at Progression Place), a price of over $100M is expected. The new owner can probably anticipate a stabilized cap rate in the 4% range based on rent projections, he adds. Chris calls Progression Place "one of the most exciting projects in DC," in large part due to the 90% pre-leased retail that includes local destinations like mixologist Derek Brown's Mockingbird Hill bar,Thor Chestons Right Proper Brew Pub, and Rappahannock Oysters newest restaurant, Eat the Rich.
