Private investor Kim Myung has acquired 1818 New York Avenue NE, a 90,000-square-foot office building in Washington, D.C.’s Ivy City neighborhood, from Choi Properties for $23.3 million, according to Greysteel, who facilitated the sale on behalf of the buyer.
“The buyer is excited about the current in-place cash flow and the future redevelopment opportunities,” David Choi, an investment associate at Greysteel, told Commercial Observer. “The area is going through a lot of exciting changes.”
Built in 1937, the property was renovated by the seller in 2005, shortly after it acquired the building. It’s situated on three acres in the popular New York Avenue NE corridor, and is located directly opposite Douglas Development’s 17-acre New City D.C., a 1.5-million-square-foot, mixed-use redevelopment project.
“The buyer is looking at the outlook over the next five to 10 years and seeing a very bright outlook in the area,” Choi said. “Our client plans to stabilize the asset, bring in more of a professional management team to manage operations and let the market mature a little more.”
Most of the current tenants in the building are local government contractors, health care services and small local businesses. Overall, the property has 40 tenants and the building is 95 percent occupied.
Joining Choi on the deal was Greysteel Director Benjamin W. Wilson. The seller was not represented by a broker.