Since January, 2003
            
 (a random before-and-after moment)
February 3, 2007
May 19, 2019
2nd (West) at I, Looking Northwest (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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City Government Data for Near Southeast Records added or updated recently displayed here; click the "archive" links to see additional detail and older records. All data from DC Government databases and RSS feeds. JDLand takes no responsibility for errors, omissions, etc. (read CapStat disclaimer). Data is retrieved daily.

Recent Crime Incidents Archive  
400 B/O M ST SE   THEFT
Theft 2nd Degree (theft From Building)
 10/17/19
1100 B/O NEW JERSEY AVE SE   THEFT
Theft 2nd Degree (all Other Larceny)
 10/13/19
80 M ST SE   THEFT
Theft 2nd Degree (all Other Larceny)
 10/11/19
100 B/O M ST SE   THEFT FROM AUTO
Theft (theft From Motor Vehicle)
 10/10/19
400 B/O M ST SE   THEFT
Theft 2nd Degree (all Other Larceny)
 10/10/19
400 B/O M ST SE   THEFT
Theft 2nd Degree (theft From Building)
 10/10/19
500 B/O L ST SE   THEFT
Theft First Degree (all Other Larceny)
 10/08/19
1400 B/O 11TH ST SE   ASSAULT WITH A DANGEROUS WEAPON  10/08/19
1200 B/O VAN ST SE   MOTOR VEHICLE THEFT
Theft First Degree (Stolen Auto)
 10/03/19
1200 SOUTH CAPITOL ST SE   THEFT FROM AUTO
Theft (theft From Motor Vehicle)
 10/03/19
1100 B/O HALF ST SE   THEFT FROM AUTO
Theft First Degree (theft From Motor Vehicle)
 10/02/19
800 B/O VIRGINIA AVE SE   ROBBERY
Assault W/i To Commit Robbery (simple Assault)
 10/02/19
700 B/O M ST SE   MOTOR VEHICLE THEFT
Theft First Degree (Stolen Auto)
 09/24/19
900 B/O 4TH ST SE   THEFT FROM AUTO
Theft (theft From Motor Vehicle)
 09/23/19
1200 B/O 1ST ST SE   ROBBERY
Assault W/i To Commit Robbery (simple Assault)
 09/23/19
400 B/O M ST SE   THEFT
Theft 2nd Degree (all Other Larceny)
 09/21/19
400 B/O M ST SE   THEFT
Theft 2nd Degree (theft From Building)
 09/19/19

Recent Issued Building Permits Archive  
1300 4TH ST SE   
10/07/19 
DFM DEVELOPMENT SERVICES, LLC / ARI BELMONTE; KONE
EN1903394 / SHOP DRAWING
Installation of (2) MRL KONE elevators in single hoistway. 15 Landings.
900 5TH ST SE   
10/08/19 
DISTRICT OF COLUMBIA HOUSING AUTHORITY / TIMOTHY S CLEMONS; TIMOTHY S CLEMONS
M2000081 / SUPPLEMENTAL
   
10/08/19 
DISTRICT OF COLUMBIA HOUSING AUTHORITY / RICHARD V CAREY; RICHARD V CAREY
P2000201 / SUPPLEMENTAL
   
10/15/19 
DISTRICT OF COLUMBIA HOUSING AUTHORITY / WILLIAM B. CRIST; WILLIAM B. CRIST
E2000633 / SUPPLEMENTAL
4 I ST SE   
10/07/19 
CRESECENT CAPITOL VIEW MF LL / KIM MITCHELL; BEN KUNKLE
B1912371 / CONSTRUCTION
Third Party Review - Revision to Permit B1804349 (Approved Under the Velocity Program),Revision associated with additional occupiable spaces provided at the "Roof Floor" with corresponding egress, revised common space layouts and corresponding use and occupancy calculations, revisions to ground floor retail south entrance and amenity spaces at the ground level.
409 I ST SE 20003   
10/11/19 
JOSEPH KOCH / null
P2000322 / SUPPLEMENTAL
409 I ST SE   
09/27/19 
JOSEPH KOCH AND ELLEN FONG / ELIZABETH S MITCHEL; ELIZABETH S MITCHEL
B1915266 / CONSTRUCTION
Interior alteration including new kitchen, master bathroom and loft.
   
10/15/19 
SCOTT A FAULK TRUSTEE / FRED LATIMORE
E2000620 / SUPPLEMENTAL
100 M ST SE 200   
10/09/19 
SQUARE 743 INC / ;
P2000249 / SUPPLEMENTAL
100 M ST SE 7TH FL   
09/26/19 
SQUARE 743 INC / ;
P1909869 / SUPPLEMENTAL
100 M ST SE 7TH FLOOR   
10/03/19 
3NW 100 M STREET LLC / DANNY L COLEY; DANNY L COLEY
E2000146 / SUPPLEMENTAL
100 M ST SE   
09/24/19 
SQUARE 743 INC / PHILIP J. MISEY; PHILIP J. MISEY
E1911913 / SUPPLEMENTAL
   
09/25/19 
SQUARE 743 INC / NAVID PARTOVI; NAVID PARTOVI
M1904391 / SUPPLEMENTAL
   
09/27/19 
SQUARE 743 INC / MIGUEL A. MOROTE; MIGUEL A. MOROTE
E1912028 / SUPPLEMENTAL
250 M ST SE   
09/26/19 
SQUARE 769 LLC / JEFFREY D WOLF
AH1901292 / CONSTRUCTION
After Hours permit is respectfully requested from 3 am to 7 am daily.
   
10/03/19 
SQUARE 769 LLC / STEVEN CHEN
AH2000003 / CONSTRUCTION
Work Onsite Only - Columbus Day
300 M ST SE   
10/01/19 
FEDERAL CENTE LP C/O CHARLES E SMITH / DANI B RADOYE; TBD
B1908440 / CONSTRUCTION
interior build out new tenant into existing space to include installation of cabinetry, flooring, wall base, ceiling system, and light fixtures, hvac system and distribution / difusers, electrical panel / equipment, accessible restrooms,drinking fountain and service sink. First 1st floor only.
   
10/17/19 
FEDERAL CENTER LP / SUKWON KIM; SUKWON KIM; NA
SG1900286 / CONSTRUCTION
To install a set of illuminated LED channel letters on raceway onto wall
139 N ST SE 19714   
10/01/19 
DISTRICT OF COLUMBIA / MIKE BOONE
AH1901332 / CONSTRUCTION
PEPCO-WO#1588714505-ALLEN / EFF / PATRICK-CREWS WILL BE CHANGING A TRANSFORMER.
861 NEW JERSEY AVE SE   
10/09/19 
GRAYSTAR GP 11,LLC / KIM MITCHELL; NA TBD
SH1900078 / CONSTRUCTION
Phase 2 - Excavation and support of excavation within 50' of DC Water Trunk Sewer line include pile installations
1275 NEW JERSEY AVE SE 20003   
10/14/19 
BROOKFIELD PROPERTIES / null
P2000362 / SUPPLEMENTAL
1100 NEW JERSEY AVE SE STE# 102A   
10/17/19 
SQUARE 742 LLC / STEPHEN TAYLOR; CHRIS PADBERG
B1913851 / CONSTRUCTION
Convert 'office' tenant space to 'The UPS Store'. Interior work only. minimum work done. 990 sq ft. No plumbing. Change diffusers and ceiling tiles. Install UPS furniture and add a few outlets.
1100 NEW JERSEY AVE SE   
09/26/19 
SQUARE 742 LLC / ;
P1909863 / SUPPLEMENTAL
   
10/01/19 
SQUARE 742 LLC / SUKWON KIM; SUKWON KIM; JJ ELECTRIC SERVICE, INC
SG1900513 / CONSTRUCTION
To install a set of LED channel letters "SUBWAY"
   
10/17/19 
SQUARE 742 LLC / WILLIAM SNODDY; TBD
B1915102 / CONSTRUCTION
Revision to previous permit number B1911194 Expansion of Tenant's Current suite into Adjacent Suite has already been "white boxed". Expansion space to consist only of workstation and Offices. Some Minor Demolition will occur in tenant existng suite in order to rework existing tenant entry and enlarge tenant reception. addition of storage closet will be added in place of existing corridor.
   
10/17/19 
SQUARE 742 LLC / WILLIAM SNODDY; CHRIS CONDON
B1913780 / CONSTRUCTION
Tenant Finish Out. Existing Conditions to be Demolished and New Space Built to Landlord Standards to Include new Ceiling grid lighting and Finishes **LEVEL 2 ALTERATION
1275 NEW JERSEY AVE SE   
10/03/19 
UNITED STATES OF AMERICA / JUSTIN BELLOW;
SH1900050 / CONSTRUCTION
Sheeting and shoring for new building
1299 NEW JERSEY AVE SE   
09/24/19 
UNITED STATES OF AMERICA / FRED T FALCONE; FREE STATE DRILLING INC
SB1900446 / CONSTRUCTION
Six 7 inch hollow stem auger probe borings to 60ft and the installation of 2.75inch inclinometer casing.
301 TINGEY ST SE C-1   
10/03/19 
SEFC 160, LLC / JEFF NOLD
AH2000017 / CONSTRUCTION
CCTV Inspection of sewer system. on 3rd Street SE btween Tingey St. & Water St.
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
Novel South Capitol ('19)
Yards/Guild Apts. ('19)
Capper/The Harlow ('19)
New DC Water HQ ('19)
Yards/Bower Condos ('19)
Virginia Ave. Tunnel ('19)
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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