Feldman Ruel Facilitates Sale of Capitol Hill Development Site

Feldman Ruel completed the sale of 1337-1339 Pennsylvania Avenue SE, a prime development site in the Capitol Hill neighborhood of Washington, D.C. The property, approved for a 20-unit multifamily project, was sold for $2.95 million, which equates to $147,500 per proposed unit.

The seller, Kehoe Construction, a local development group, had acquired the site in September 2022 with plans to build boutique condos. However, market conditions and a shift in focus toward other product types led them to sell the fully permitted project. The buyers, a partnership between a local developer and a general contractor, were attracted by both the location and the existing approvals that came with the site.

“Ground-up multifamily projects have been the most challenging to transact over the past 18 months,” said Ruel. “Interest rates are starting to ease, material costs are stabilizing or even decreasing, and developers recognize that projects breaking ground now will deliver at an advantageous time with respect to similar inventory due to the recent slowdown in development activity.”

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