6C — January 21 - February 17, 2022 — Contractors/Subcontractors — Owners, Developers & Managers — M id A tlantic Real Estate Journal
www.marej.com
Contractors/Subcontractors
Plans to convert office building into class A multifamily residential property Foulger-Pratt acquires 1425 New York Avenue in Washington, DC
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East End of the Central Busi- ness District. Once complete, it will be the closest residen- tial property to the White House — in walking distance to the world’s economic and political drivers including the Treasury Department, In- ternational Monetary Fund, World Bank, Executive Of- fice 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 DC has the high- est concentration of jobs in the
metro area. The project’s prox- imate location to two Metrorail stations and freeways allows convenient access to suburban submarkets such as National Landing (home of Amazon HQ2), the Rosslyn/Ballston corridor, Tysons and Alexan- dria in Northern Virginia; and Silver Spring and Bethesda in Suburban Maryland. Background on project capi- talization: • $31.4 million sponsor and investor equity, including $14 million from approximately 300 CrowdStreet investors • $30.6 million acquisition loan from E agle Bank • $62 million total project cost (includes price paid, and design and permitting for the redevelopment) Cameron Pratt , managing partner & CEO of Foulger- Pratt stated: “1425 New York Ave. is in the epicenter of Washington, D.C. attractions and ameni- ties, 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 redevelop- ment, which creates a high barrier to entry. This build- ing has a unique floorplate with window heights that lays out well for residen- tial conversion, plus ample below-grade parking.” “We’re pleased to have in- vestors on CrowdStreet par- ticipate. 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.” MAREJ stand the tax implications when receiving rental income from real estate investments and the transactional tax is- sues that are incurred when selling US real estate. George Samios, CPA is a real estate services team member at Withum. continued from page 2C Tax Implications of US Real Estate Ownership . . .
ASHINGTON, DC — Foulger-Pratt based in Potomac,
MD has acquired 1425 New York Ave., NW in Washing- ton, DC, 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 redevel- opment, it will have 255 rental units across 280,000 GSF. Designs are expected to be fi - nalized and building permits ob- tained in the next 10-12 months. The project will be recapitalized before construction begins.
1425 New York Ave., NW
The location 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 location is truly one of a kind. The project is in the
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