Foulger-Pratt Acquires 1425 New York Avenue Building to Convert and Redevelop Into 255-Unit Class-A Multifamily Residential Community

WASHINGTON, DC - Foulger-Pratt, based in Potomac, Md., has acquired 1425 New York Avenue, N.W. in Washington, D.C., and will convert and redevelop the office building into a Class-A multifamily residential property. With 13 stories and four underground levels of parking, the building is 287,000 GSF. After redevelopment, it will have approximately 255 rental units across 280,000 GSF.

The zoning for conversion to multifamily is by right. Designs are expected to be finalized and building permits obtained in the next 10-12 months. The project will be recapitalized before construction begins.

The location is truly one of a kind. It is highly supply constrained. Relative to the amount of office, there is very limited Class-A product, with only four properties (1,044 units) within a half-mile. The project is in the East End of the Central Business District. Once complete, it will be the closest residential property to the White House — in walking distance to the world’s economic and political drivers including the Treasury Department, International Monetary Fund, World Bank, Executive Office Buildings and Federal Reserve. The property also benefits from the nearby critical mass of powerful law firms, lobbyists, associations, advocacy groups and financial services companies.

Downtown D.C. has the highest concentration of jobs in the metro area. There are more than 50 million SF of office in a half-mile radius and over 100 million SF in a one-mile radius. Further, the project’s proximate location to two Metrorail stations (Metro Center and McPherson Square) and freeways allows convenient access to suburban submarkets such as National Landing (home of Amazon HQ2), the Rosslyn/Ballston corridor, Tysons and Alexandria in Northern Virginia; and Silver Spring and Bethesda in Suburban Maryland.

Washington, D.C. is among CrowdStreet’s “Best Places to Invest in 2021,” a national ranking of top markets. CrowdStreet ranks metro Washington as a top 10 market for multifamily development.

The project is capitalized with $31.4 million of sponsor and investor equity, including $14 million from approximately 300 CrowdStreet investors. Additionally, there is a $30.6 million acquisition loan from Eagle Bank. The project cost to date is $62 million (including price paid, and design and permitting for the development).

Cameron Pratt, Managing Partner & CEO of Foulger-Pratt, commented: “1425 New York Avenue is in the epicenter of Washington, D.C. attractions and amenities, as well as the central business district between K Street and Capitol Hill.”

“The submarket was built out years ago with heavy office uses, with few sites available now for redevelopment, which creates a high barrier to entry. This building has a unique floorplate with window heights that lays out well for residential conversion, plus ample below-grade parking.”

“We’re pleased to have investors on CrowdStreet participate. We believe in the retail investment model and consider a role for individual investors on a project-by-project basis. In this case, investors are coming into the project in its infancy and will benefit from the value created during the initial design and permitting phase of the project. We expect to fully capitalize the project and start construction in late 2022.” 

David Govshtein, Managing Director of CrowdStreet, added: “By CrowdStreet’s investment thesis, the Washington, D.C. metro area ranks highly overall and as a top market for multifamily development in the U.S. Investors on CrowdStreet responded very favorably to this offering, which was oversubscribed by $10 million in less than an hour. It’s a testament to the sponsor’s track record and the fundamental appeal of this project, which is exceptionally well located in the heart of Washington, D.C.”

About Foulger-Pratt: Established in 1963, Foulger-Pratt is a real estate investment and development firm distinguished by its long-term focus and extensive experience executing successful mixed-use, transit-oriented projects. The firm’s disciplined culture and vertically integrated platform have enabled it to develop more than 15 million square feet of commercial office, multifamily residential and retail projects. From acquisition to development and construction to asset management, the company’s fully integrated teams create value at all stages of an investment’s lifecycle. For more information, visit www.foulgerpratt.com

About CrowdStreet: CrowdStreet, which operates the largest online real estate investing platform, provides individual investors direct access to the most diverse range of institutional-quality private equity real estate investment opportunities. Investors benefit from real estate investment education combined with the ease and convenience of online investing through an advanced marketplace. To date, thousands of people have invested over $2.6 billion in more than 560 projects, receiving more than $280 million in distributions. CrowdStreet is helping to create a community where individual investors and experienced real estate firms can work together to expand participation in real estate investing and potentially build wealth. For more information, visit www.crowdstreet.com

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