WASHINGTON DC – Marcus & Millichap Real Estate Investment Services, the nation's largest real estate investment services firm, has been retained to sell Common Richardson and Common Monroe, two turnkey coliving apartment buildings located in Northwest Washington DC, according to Brian Hosey, district manager of the firm's Mid-Atlantic region. The two properties will be the first purpose-built coliving assets to trade on the market in Washington, DC. Common Monroe & Common Richardson are master-leased by Common, the fastest-growing coliving property management company in the country.
Formerly the Mt. Rona Missionary Baptist Church, Common Monroe is a case study for successful urban adaptive reuse. The property was completely rebuilt, transforming the structure into a 16,800-square-foot, 46-bedroom, 37-bathroom coliving building located in the heart of Columbia Heights. Outlier Realty Capital, the developer, preserved many of the original features of the former church in the conversion, including the facade, stained glass windows, architectural elements, and spires. Common Richardson, which can be purchased separately, is located two miles north in the Shaw neighborhood. Common Richardson was also newly constructed, having opened in 2017, featuring furnished six-bedroom, six-and-a-half-bathroom apartments across two buildings and over 11,000-square-feet. Units in both buildings feature open-concept kitchens with high-end appliances, stoves, hardwood floors, large windows filling the apartments with plenty of natural light, and in-unit washers and dryers.
Northwest DC has experienced a transformative revitalization over the past two decades following the delivery of new apartment buildings, retail destinations like the DC USA Shopping Center, and hundreds of new trendy bars and restaurants. However, the rapid growth of Northwest DC has not come without consequences. "Demand for apartments in Shaw and Columbia Heights has outpaced supply, causing the affordability gap to widen, displacing lower-income residents," says Marty Zupancic of Marcus & Millichap. Companies like Common and Outlier believe strongly in coliving as a practical solution.
The coliving rental model provides prospective tenants with an affordable substitute for a traditional apartment lease. Tenants in Common's coliving managed properties sign a lease for a private bedroom in a fully-furnished unit that includes all utilities. The all-in costs tend to save tenants between $300-$600 per month compared to a newer studio apartment in the same neighborhood. The coliving model also increases the density of residents living in a given building and keeps more private units available in the market. These factors put downward pressure on conventional multifamily rental rates.
"For real estate investors, these two assets are exciting opportunities to acquire not only newly-built, well-located multifamily product in the heart of DC, but also assets that achieve strong fixed monthly cash flows with minimal landlord responsibilities through the master leases, guaranteed by Common," says Dennis Cravedi of Marcus & Millichap.
About Marcus & Millichap (NYSE: MMI): Marcus & Millichap is the nation's largest brokerage firm focused exclusively on investment sales. It is based on a simple premise: matching each property with the largest pool of pre-qualified investors. With over 2,000 investment sales and financing professionals located throughout the United States and Canada, Marcus & Millichap is a leading specialist in commercial real estate investment sales, financing, research, and advisory services. Founded in 1971, the firm closed 8,954 transactions in 2020 with a value of approximately $43 billion. Marcus & Millichap has perfected a powerful system for marketing properties that combines investment specialization, local market expertise, the industry's most comprehensive research, state-of-the-art technology, and relationships with the largest pool of qualified investors. To learn more about the company, please visit www.MarcusMillichap.com