January 2023

M id A tlantic Real Estate Journal — Owners, Developers & Managers — January 2023 — 11C


O wners , D evelopers & M anagers

89% of homeowners rate their overall experience as very good or good (66%) or neutral (23%) Housing experts project another year of modest growth for U.S. Condos & Homeowners Associations living experience:

F ALLS CHURCH, VA — While experts predict a major slowdown for the U.S. housing market in 2023, the number of new condomini- um communities and homeown- ers associations is expected to increase by 5,000 this year, according to projections by the Foundation for Community As- sociation Research, an affiliate organization of Community Associations Institute (CAI) . Community associations, also known as homeowners associations, condominiums, and housing cooperatives, are home to 74.2 million Americans and represent 29% of the U.S. housing stock, according to the Foundation's 2021-2022 U.S. National and State Statistical Review for Community As- sociation Data. A full scope of the latest industry data and Feldman Ruel Urban Property Advisors facilitates sale of 4231 Duke Street WASHINGTON, DC — Feldman Ruel Urban Prop- erty Advisors announced the sale of 4231 Duke St., a two-level, mixed-use property located in the Seminary Hill neighborhood of Alexandria, VA. The property was delivered completely vacant at closing. 4231 Duke St. features a fully built-out restaurant and two additional commercial units on the first and second levels respectively. The building sits on a 15,727 s/f lot and includes 25 on-site parking spaces. The asset sold for $2,425,000 or $413.12 psf. Tanner Scales, Josh Feld- man, and Ian Ruel of Feldman Ruel had the exclusive listing to market the property on behalf of the seller, a private individual who had previously operated a business on-site but recently decided to retire and sell the property. 4231 Duke St. was purchased by DJM Investments , which plans to convert the first level into two separate restaurant concepts and renovate and lease the second-level office space. DJM Investments was attracted to this asset because of its location along a high- ly trafficked portion of Duke Street, the ample on-site park- ing, as well as the flexibility to open multiple restaurant con- cepts on the same site. MAREJ

statistics will be released in July 2023. The Foundation estimates the number of U.S. community associations will grow from 358,000 to as many as 363,000. “While we’re optimistic about the continued growth of com- munity associations, we also are closely monitoring a decline in U.S. home prices and an in- crease in mortgage rates that is cooling the housing market,” said Dawn M. Bauman, CAE , executive director of the Foun- dation and CAI's senior vice president of government and public affairs. Bauman adds, “The demand

for housing continues to out- pace the number of sellers in many states, such as Florida and Texas, where increased mortgage rates are impacting housing affordability. Another real concern is how labor and supply chain issues remain a real problem for home- builders. We’re hearing many builders say they are using the market slowdown as a time to catch up.” Since the 1970s, community associations have been a popu- lar housing choice for people around the world—especially for condominium buyers seek- ing proximity to city centers,

public transportation, and schools. Planned communities also give local municipalities the ability to transfer the ob- ligation of providing services such as trash and recycling pickup, snow removal, sidewalk and street maintenance and lighting, stormwater manage- ment, and more to homeowners. The 2022 Homeowner Satis- faction Survey, a biennial, na- tionwide report conducted by Zogby Analytics on behalf of the Foundation, provides a better understanding of condominium and homeowners associations. Homeowners say the following about their community association

89% rate their overall experi- ence as very good or good (66%) or neutral (23%). 87% say members of their elected governing board “ab- solutely” or “for the most part” serve in the best interests of their community. 76% say their community manager provides value and support to residents and their association. 89% say their association's rules protect and enhance property values (68%) or have a neutral effect (21%); only 7% say the rules harm property values. MAREJ

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