Since January, 2003
            
 (a random before-and-after moment)
May 20, 2006
March 28, 2015
1st at N Place, Looking West (see more)

With an instruction to residents to Please Don't Panic, I'll pass along the news that Onyx on First, the 266-unit apartment building at 1100 1st St. SE, is up for sale. With a brochure touting "Excellent Transportation Infrastructure, Phenomenal Employment Opportunities," and "Shopping and Entertainment Options Abound," the sellers look to be trying to get in on what is clearly a rebounding multifamily market in DC.
Apparently there's no price set for the sale, and with a building that's 92 percent occupied with what looks like pretty high average rent numbers, I imagine investors will be taking a close look. The eventual sale (should there be one) could also be an interesting barometer of how "the markets" view the neighborhood. Proposals are due April 14.
The building, originally planned to be condos but converted to apartments during the construction phase, was developed by Faison and the Canyon-Johnson Urban Fund and completed in 2009. It was built the same time as its neighbor 100 M, the office building that recently bought for $57 million in a foreclosure sale. Onyx is on the same block as the New Jersey Avenue entrance to the Navy Yard Metro station, two blocks north of Nationals Park, and one block west of the Courtyard by Marriott that is being bought for $68 million. And, of course, just across the street from the Market Deli.
You can see my Onyx project page for photos and more information.
Comments (12)
   
 
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Comments

F says: (3/8/11 10:08 PM)
It's interesting that the brochure does not mention its close proximity to a soon-to-be-designated-historic-deli.


G says: (3/9/11 10:13 AM)
As long as they keep that name - "Onyx!" - I'm happy.


Charles says: (3/9/11 11:29 AM)
It is interesting that the rental rate maxes out with a $3.25/sf cap on income. Meanwhile, assuming the common area expenses, taxes, payroll, property management and CapEx run at or near 40% of income (fairly generous), we are talking a bottom line of roughly $2/sf.

Meanwhile, Rep Garber still has failed to respond to the financial modeling detailing the gross economic failings of his proposed "Corner Grocer", which, it should be noted, fails despite assuming an aggressive $3.80/sf NNN. (For those that might need clarification, NNN stands for triple-net and requires the tenant to pay all taxes, insurance, utilities, regular maintenance and repairs.)

It seems to me that Rep. Garber has proffered nothing more than a recipe for an abandoned building remaining as such for years and years to come. At best, we will be saddled with a “historic” eyesore.

In other news, one has to wonder if Onyx's new owner will continue offering the very healthy rent incentives and whether such owner is bound to the existing tenant’s – many of whom received verbal assurances that they would remain in place. It is not a stretch to believe that many residents might be looking at a very different picture than they originally contemplated when their renewal date arrives.

Very interesting times abound for those that live at the intersection of 1st and L Streets!


Ishmael says: (3/9/11 11:59 AM)
"...and whether such owner is bound to the existing tenant’s – many of whom received verbal assurances that they would remain in place."

I'm no lawyer, but if it is not written into someone's lease, then I can guarantee that the new owner will not have to honor it. I doubt that a verbal assurance from a low-level Onyx employee, who may or may not have a job once the building is sold, carries no legal weight.


Jenniferpdc says: (3/9/11 5:02 PM)
Charles - since you seem interested. The effective rental rate at the Onyx is considerably less than the $3.15/psf that the broker is listing as the "market" rental rate. At this time the newest and best located apartments in DC are topping out at around $3.50/psf for the market rate, but concessions in this building are probably still running close to 10%. I'm betting their economic occupancy is considerably less than 90%. Operating expenses for a high-rise of this nature generally range from 25% to 30%. I generally can't comment on this site, because I'm party to confidentiality agreements (I work for commercial real estate investors - and believe me I have alot to say about 225 Virginia Ave) but I don't have ths book yet. If taking the potential gross rent of about $7.2M, minus vacancy, concessions, etc. (based on the location, I would estimate at about 12%)and adding other income (parking, etc.) of about $2K/unit and then deducting operating expenses estimated at 30%, you would get an NOI of about $4.8M. DC multi-family is very hot right now, and Fannie/Freddie are giving out long-term money very cheap (although it's gone up significantly in the past couple of months), someone will probably pay for this based on a capitalization rate around 5.25%, estimating the value at around $90M ($340K/unit - which actually seems a little light on a price per pound basis).


Charles says: (3/10/11 9:24 AM)
Jennifer - Thanks for the insights. I really like your math and perspective. Your trading value of $91,429,000 does seem light on a per unit basis, but does translate to roughly $478 a square foot - a number that feels more palatable to me. Plus, this number does provide a buyer some upside (as the significant concessions should slowly disappear) against a relatively low cap-rate.

In regard to your 30% number, I totally agree. I should have done a better job of clarifying that the 40% number proffered included concessions, which I understand are generous on this particular property. At $2/sf the annualized NOI number at which I arrived was a bit lower than your $4,800,000 - coming in at about $4,590,000.

One final thing, if you have the time and given your knowledge about this specific marketplace, I would really appreciate your thoughts on realizable retail rents. My understanding is that between BID and DC taxes, there is a stiff headwind, which might partially explain the lack of real restaurant options.


Jenniferpdc says: (3/11/11 12:50 PM)
Retail has been a little funny the past couple of years given the economy, but generally 1st floor retail in office downtown, asking rates range from about $40 to $50 NNN, depending on the location. Banks pay higher (sometimes alot higher for prime corner locations), larger tenants less. Grocery stores and pharmacies are generally less than $10 NNN. I've seen a couple of deals in prime downtown location on Metro in about the mid-$50's, in the mid-$40's for restaurants or lesser locations, but new buildings. The thing is, the landlords are buying alot of these deals by very large tenant improvements packages, $125+ for only five year deals with free rent added in.

The owners around here are actually asking on average higher than downtown, in the high-$40's, which is highly unlikely. My guess is they will go alot lower than that if they could find a tenant.

My understanding, although I haven't seen the actual comp, is that Bureau of Land Management signed for about $33-$34 FS for the space they took in Lerner's building, signficantly lower than the orginal $46 they were asking.



58Model says: (3/11/11 3:22 PM)
I was told there would be no math...


Charles says: (3/11/11 4:21 PM)
Jennifer: Thanks for the tremendously useful information. As you might have seen in other posts, in addition to believing the "historic" bases for the Market Deli's nomination severely lacking, I have made arguments elsewhere that there is simply no economic underpinnings supporting David Garber's claim that a corner grocer will return to the space.

These numbers go a long way to proving out the fallacies in his logic and demonstrate that should such nomination prove successful, the only result with be the slow and continued dilapidation of the existing structure.

Thank you! Charles


David Garber says: (3/11/11 5:27 PM)
Charles,

Although I applaud your dedication to this cause, let me clear something up: I never claimed that a corner store would return to the space. I did say that if restored (and if it is landmarked, it is likely that it will eventually be restored), then it will be a desirable retail space.

My dedication to quality design and development in this neighborhood remains the same as it was during my campaign. If all land-use and design decisions were made with only the $/sf in mind, we would have a very sad looking city. I have been very supportive of Akridge's work in the neighborhood, and have kept them in the loop on all of my acclamations and concerns for each of their projects. I hope you all will do the same for me, as I am constantly meeting with and working with the people who are shaping the neighborhood.

I don't expect us to agree on every issue, but I do hope that our conversations will remain civil. I'll continue to do my best to keep the neighborhood informed about the initiatives I engage with here.

Again, I hope to see any and all at the Market Deli tomorrow morning, if only to have the chance to meet in person.


Charles says: (3/11/11 6:20 PM)
David:

David, in all civility, I think you have made a huge mistake, which has only been compounded by your subsequent actions. I have been vocal and consistent about this and I regret if my passion in believing your actions egregious and fully considered basis offends.

However, words and actions have meanings and I am afraid that you merely stating your "dedication to quality design and development" does not make it so. The quality design in the instant case is a ramshackled building that has gone without upkeep (or a tenant) for roughly 14-years. And your "support" for development is to sandbag the developer by filing this only upon their requesting a raze permit.

Again, words have meanings. While you protest that you constantly meet with people shaping the neighborhood, you conveniently avoided such public meetings prior to scurrying to the NW to find someone to sponsor your initiative. This despite openly acknowledging that this would be a subject of controversy.

Finally, you have failed to provide any reasonable set of economic analysis which sets forth a viable plan for the space at issue to find a tenant. Even if successful, your efforts would do nothing other than protect an empty and decaying structure, which should probably be condemned, undermining the growth and positive directions found elsewhere in our area.

Again, in case you missed it, you did this without calling a meeting and consulting your constituents.

Regards,
Charles


Charles says: (3/11/11 6:23 PM)
Sorry. Typo.

I meant to say "not fully considered basis" at the ending of the second sentence of the first paragraph.

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Recent Crime Incidents Archive  
300 B/O VIRGINIA AVE SE   THEFT
Theft 2nd Degree (all Other Larceny)
 06/18/18
1100 B/O NEW JERSEY AVE SE   THEFT
Theft 2nd Degree (all Other Larceny)
 06/18/18
800 B/O L ST SE   THEFT FROM AUTO
Theft (theft From Motor Vehicle)
 06/18/18
400 B/O M ST SE   THEFT
Theft 2nd Degree (all Other Larceny)
 06/16/18
400 B/O M ST SE   THEFT
Theft 2nd Degree (theft From Building)
 06/11/18
1100 B/O 8TH ST SE   MOTOR VEHICLE THEFT
Theft First Degree (Stolen Auto)
 06/10/18
UNIT B/O L ST SE   THEFT FROM AUTO
Theft (theft From Motor Vehicle)
 06/09/18
400 B/O M ST SE   THEFT
Theft 2nd Degree (all Other Larceny)
 06/06/18
400 B/O M ST SE   THEFT
Theft 2nd Degree (all Other Larceny)
 06/04/18
400 B/O M ST SE   THEFT
Theft 2nd Degree (all Other Larceny)
 06/04/18
700 B/O L ST SE   THEFT
Theft 2nd Degree (all Other Larceny)
 05/29/18
1000 B/O NEW JERSEY AVE SE   MOTOR VEHICLE THEFT
Theft First Degree (Stolen Auto)
 05/28/18
1100 B/O 10TH ST SE   THEFT FROM AUTO
Theft 2nd Degree (theft From Motor Vehicle)
 05/26/18
1100 B/O 9TH ST SE   THEFT FROM AUTO
Theft (theft From Motor Vehicle)
 05/25/18
UNIT B/O I ST SE   THEFT
Theft First Degree (all Other Larceny)
 05/25/18
400 B/O M ST SE   THEFT
Theft 2nd Degree (theft From Building)
 05/22/18
400 B/O M ST SE   THEFT
Theft 2nd Degree (theft From Building)
 05/21/18

Recent Issued Building Permits Archive  
1018 3RD ST SE   
06/06/18 
DAVID A LEINER / SCOTT STERL
F1800474 / CONSTRUCTION
REPLACEMENT OF AN EXISTING CHAIN LINK FENCE TO A WOODEN FENCE 6FT. TALL.
1212 4TH ST SE   
06/06/18 
null / THAIS NA PEACHER
EHOP18924304 / HOME OCCUPATION
101 H ST SE   
05/23/18 
SQUARE 737 LLC / null
P1806213 / SUPPLEMENTAL
   
06/05/18 
SQUARE 737 LLC / JOHN SONNER 4438727277
E1807389 / SUPPLEMENTAL
   
06/06/18 
SQUARE 737 LLC / null
P1806501 / SUPPLEMENTAL
2 I ST SE   
05/31/18 
CRESCENT CAPITOL VIEW / null
E1807278 / SUPPLEMENTAL
   
05/23/18 
CRESCENT CAPITAL VIEW, LLC / ERICKA CLARK
TC1800034 / CONSTRUCTION
Renewal of tower crane permit #TC1700022 EXTENSION WILL EXPIRE ON 11 / 23 / 2018
202 M ST SE   
05/29/18 
null
E1807211 / SUPPLEMENTAL
   
05/29/18 
null
P1806323 / SUPPLEMENTAL
100 M ST SE   
06/05/18 
SQUARE 743 INC / ROBERT L HUNTER 703-404-0303
M1802631 / SUPPLEMENTAL
202 M ST SE   
05/31/18 
UNITED STATES OF AMERICA / null
P1806387 / SUPPLEMENTAL
300 M ST SE   
05/25/18 
FEDERAL CENTER LP / GARY BRENT; CARLOS DIAZ
SG1800308 / CONSTRUCTION
Install 2 illuminated wall signs and 1 temporary Banner - Sprint
   
06/01/18 
FEDERAL CENTER LP / SAM HOLLEN
B1809520 / CONSTRUCTION
INTERIOR RENOVATION TO 8TH FLOOR OFFICE SPACE. PARTITIONS, FURNITURE, MECHANICAL, ELECTRICAL AND LIFE SAFETY. NO PLUMBING OR STRUCTURAL. 860 SQUARE FEET. STRATEGIC INSIGHT
410 M ST SE   
05/30/18 
DISTRICT OF COLUMBIA HOUSING AUTHORITY / SCOTT NICHOLS
AN1800023 / CONSTRUCTION
AT&T proposes to add three new antennas to an existing rooftop telecommunications facility.
800 NEW JERSEY AVE SE   
05/24/18 
SQUARE 737 LLC / null
P1806243 / SUPPLEMENTAL
861 NEW JERSEY AVE SE   
05/23/18 
CONSOLIDATED RAIL CORPORATION / NA CSX TRANSPORTATION INC.
AH1800974 / CONSTRUCTION
Work in public ROW within the Virginia Avenue Tunnel Reconstruction Project LOD for utility, demolition, and concrete structure construction activities. **TO EXCLUDE LEGAL HOLIDAYS**
1115 NEW JERSEY AVE SE   
06/07/18 
DONOHOE REAS ESTATE SERVICES / null
E1807467 / SUPPLEMENTAL
1115 NEW JERSEY AVE SE 20003   
06/14/18 
GALLERY CAPITOL RIVERFRONT PROPERTY LLC / THOMAS P MCGUIRE 410-766-7463
E1807687 / SUPPLEMENTAL
   
06/14/18 
GALLERY CAPITOL RIVERFRONT PROPERTY LLC / THOMAS P MCGUIRE 410-766-7463
E1807698 / SUPPLEMENTAL
1115 NEW JERSEY AVE SE   
06/12/18 
GALLERY CAPITOL WATERFRONT PROPERTY LLC / null
P1806653 / SUPPLEMENTAL
1100 NEW JERSEY AVE SE   
06/12/18 
SQUARE 742 LLC / CLIFFORD DIXON
B1807730 / CONSTRUCTION
REVISION: REVISE B1804348 5TH FLOOR OFFICE SPACE TO EXTEND THE OFFICE INTO ADDITIONAL SPACE TO CREATE A LARGER OPEN OFFICE
71 POTOMAC AVE SE   
05/30/18 
FORIDA ROCK PROPERTIES INC / ANKIT K SINGH
UT1800044 / CONSTRUCTION
Removal of an Underground storage Tank (UST) 7 feet in diameter and approximately 16 feet long (approximately 6,000 gallons). Suspected Fuel Tank. Tank is filled with water and soil. Tank will be cleaned, removed and disposed off as per the appropriate standards and requirements.
221 TINGEY ST SE   
06/05/18 
GONE YARD HOTEL OWNER LLC / MITCH PERMUY 7272100491
E1807017 / SUPPLEMENTAL
227 TINGEY ST SE   
05/25/18 
FOREST CITY WASHINGTON / MELISSA DIAZ
B1801871 / CONSTRUCTION
Yards Parcel L-2. New 11-story mixed use building with residential, retail on ground level, and underground parking garage. TPR
   
05/31/18 
FOREST CITY WASHINGTON / DANIEL P. THOMPSON
P1806388 / SUPPLEMENTAL
(2) Backwater valve
   
06/07/18 
UNITED STATES OF AMERICA / MICHAEL ERIC CAMPBELL 571-229-1360
M1802664 / SUPPLEMENTAL
Equipment Manufacturer Equipment Model AAON DOAS, RTU and AHU DAIKIN VRF and split systems DESERT AIRE LC06R7NFDDMLAERD
   
06/07/18 
FOREST CITY WASHINGTON / DANIEL P. THOMPSON
P1806553 / SUPPLEMENTAL
REVISION TO P1806388. IN LIEU OF 753 SINKS SHOULD READ 264 SINKS, 489 BASINS
300 TINGEY ST SE   
06/04/18 
FC BOILERMAKER LLC / ALBERT E. WILLIAMS 443-532-0991
M1802615 / SUPPLEMENTAL
   
06/04/18 
FC BOILERMAKER LLC / null
P1806437 / SUPPLEMENTAL
   
06/05/18 
FC BOILERMAKER LLC / CARLOS E. MONTES
P1806464 / SUPPLEMENTAL
355 WATER ST SE   
06/14/18 
UNITED STATES OF AMERICA / EDUARDO LOPEZ 2023884000
E1807680 / SUPPLEMENTAL
355 WATER ST ST SE   
06/13/18 
UNITED STATES OF AMERICA / KIMBERLY SPEED
TN1800127 / CONSTRUCTION
The Great Lawn at Yards Park will be the site of the California State Society Annual Summer Picnic. The contract specifies the licensee to obtain permits for tents and generators on the lawn. The large tent is 100 x 40 - which I have the Certificate of Flame Resistance), as well as a generator. I have the generator specifications from the distributor.
AH = After Hours; B = Alteration & Repair; D = Demolition; E = Electrical; FB = Boiler; M = Mechanical; P = Plumbing and Gas; PC = Post Card; R = Raze; SG = Sign; TL = Tenant Layout; TN = Tent; RW = Retaining Wall;

Real Property Sales Archive  
No commercial transaction records added or modified in the past two weeks.


Project Directory
Completed
99 M ('18)
Agora ('18)
1221 Van ('18)
District Winery ('17)
Insignia on M ('17)
F1rst/Residence Inn ('17)
One Hill South ('17)
Homewood Suites ('16)
ORE 82 ('16)
The Bixby ('16)
Dock 79 ('16)
Community Center ('16)
The Brig ('16)
Park Chelsea ('16)
Yards/Arris ('16)
Hampton Inn ('15)
Southeast Blvd. ('15)
11th St. Bridges ('15)
Parc Riverside ('14)
Twelve12/Yards ('14)
Lumber Shed ('13)
Boilermaker Shops ('13)
Camden South Cap. ('13)
Canal Park ('12)
Capitol Quarter ('12)
225 Virginia/200 I ('12)
Foundry Lofts ('12)
1015 Half Street ('10)
Yards Park ('10)
Velocity Condos ('09)
Teague Park ('09)
909 New Jersey Ave. ('09)
55 M ('09)
100 M ('08)
Onyx ('08)
70/100 I ('08)
Nationals Park ('08)
Seniors Bldg Demo ('07)
400 M ('07)
Douglass Bridge Fix ('07)
US DOT HQ ('07)
20 M ('07)
Capper Seniors 1 ('06)
Capitol Hill Tower ('06)
Courtyard/Marriott ('06)
Marine Barracks ('04)


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