Calvert Woodley

2601 Woodley Place NW ​ | ​ Washington, DC

The Opportunity

The Berkadia Real Estate Advisors Team is pleased to present for sale Calvert Woodley Apartments (the “Property”), a 136-unit value-add multifamily community located in Washington D.C.’s affluent Woodley Park neighborhood. The property offers the best of both worlds in Washington D.C. with immediate access to scenic Rock Creek Park and convenience of central downtown DC only three stops away on Metro’s neighboring Red Line. With a wide variety of unique floor plans, Calvert Woodley’s embellished in-unit features and wide range of community amenities are designed to attract DC’s affluent renters.

Having spent a considerable amount in capital expenditures since ownership, Calvert Woodley has been impeccably maintained demonstrating a sense of quality to its residents. The Property sits less than one block away from the Woodley Park Metro Station,​ affording tenants convenient connectivity to the top employment hubs in both downtown Washington, D.C. and Montgomery County. Calvert Woodley is also located within two blocks of the Smithsonian National Zoo and a short walk to Adams Morgan’s eclectic mix of restaurants and night life. There are few communities which can offer this level of access all while providing quiet residential tree-lined streets and the serenity of Rock Creek Park literally at your back door.

Operating at a high level of occupancy, average in-place rents are over 5% below market​ and provide investors the ability to increase value by marking rents to current market rates. Additionally, new ownership will have the opportunity to renovate units gaining significant value-add rental income in the range of $166 to $395 per month.

Most recently, the Property’s exceptional lease rate indicates strong support for growing rents on-site in a post-Covid environment, where 2021 rents are already $246/unit higher (~11% higher) than the average rent achieved in 2020.​ Market fundamental trends in the submarket have also been exceptional, with high historical and projected rent growth trends – for 2022 through 2024, the submarket is projected to see effective rent growth of 3.2% per year.

The property is to be delivered on a free and clear basis.

Investment Highlights

IMPROVED ENERGY EFFICIENCY

In 1Q2021, current ownership installed rooftop solar panels to offset the cost of common area electricity. Annual savings are projected to be approximately $10,000. Further, extra energy generated via solar panels is sold back to the city for an additional income line item in the amount of about $35,000 annually.

TRANSIT-ORIENTED LOCATION

Calvert Woodley offers residents immediate access to one of the Nation’s best subway systems. Located just two blocks away, the Woodley Park Metro Station is situated on the Red Line connecting Montgomery County, MD to Washington’s CBD. Consisting of 27 stations, it is the busiest and most convenient of all Metro lines. It will connect to the new Purple Line opening next year adding further access to area destinations for the residents. Calvert Woodley’s residents can easily connect to every major employer, retail centers, and lifestyle amenities including those like Amazon HQ2 in Northern Virginia. Located one block off of Connecticut Avenue, the property has easy accessibility to Metro Bus as well.

WELL-MAINTAINED ASSET

Since acquisition in 2013, Calvert Woodley has received substantial capital expenditure upgrades. These enhancements include renovation of lobby, business center, hallways and other common area spaces, upgraded gym with new cardio equipment and flooring, rooftop lounge, energy saving rooftop solar panels, and a host of mechanical upgrades. As a result of these improvements, a buyer will be able to focus exclusively on revenue-generating improvements such as a unit renovation program.

SUPPLY-CONSTRAINED SUBMARKET

There will be limited downward pressure from new multifamily development in the immediate area. Unlike other submarkets in Washington DC such as the Navy Yard, Capitol Riverfront, Union Market and NoMa, the Woodley Park/Cleveland Park/Van Ness submarket features high barriers to entry, as most of the larger sites in the area have already been developed. Withing the next 36 months, there are no new apartment communities currently under construction or planned to deliver in the immediate vicinity of Calvert Woodley. The submarket’s favorable supply dynamics substantiate the potential for new ownership to aggressively grow rents in the coming years.

FUTURE VALUE-ADD OPPORTUNITY

Calvert Woodley is in the immediate position to realize substantial rent growth by further enhancing in-unit finishes (cabinetry, countertops, backsplashes, fixtures, and new flooring). Upon completion, a new owner could achieve an approximate return of 16.0% levered IRR on the investment equating to an average rent premium of $311 per unit monthly. Currently, there is a 43% spread in rents between Class A and Class B in Calvert Woodley’s submarket.​ Since all major common areas have recently undergone a modernization, renovating unit interiors will allow Calvert Woodley to compete with its newly constructed Class A competitors.

The following table represents the three different possible levels a new owner could renovate the unit interiors in the property.

Charts & tables representing this highlight can be found in the Offering Memorandum

ACCELERATING RECENT RENTS POST COVID

Calvert Woodley’s recent rents are quickly accelerating as the property transitions to post-Covid rents triggered by strong demand in the area. The most recent 10 leases are averaging $244 higher (10.0%) than the average in-place rent.

Charts & tables representing this highlight can be found in the Offering Memorandum

VIDEO TOUR

136

Units

$2,434

Avg. In-Place Rent

$2,543

Avg. Market Rent

927 SF

Avg. Unit Size

1962

Year Built

126,120

Rentable SF

Photo Gallery

Contact Us

berkadia Offices

DC METRO

4445 Willard Avenue
Suite 1200
Chevy Chase, MD 20815
Phone: 301.202.3550

Berkadia.com

Berkadia Team

INVESTMENT SALES

ROBERT MEEHLING

Senior Managing Director
301.202.3553
bobby.meehling@berkadia.com

WALTER COKER

Senior Managing Director
240.204.5128
walter.coker@berkadia.com

DREW WHITE

Senior Managing Director
240.396.1090
drew.white@berkadia.com

LOUIS JACOBE

Director
204.396.1088
louis.jacobe@berkadia.com

JEFF COLES

Senior Director
240.204.5126
jeff.coles@berkadia.com

BRIAN CRIVELLA

Senior Managing Director
240.204.5129
brian.crivella@berkadia.com

PAUL HANAFIN

Managing Director
240.396.1082
paul.hanafin@berkadia.com

MORTGAGE BANKING

J. TYLER BLUE

Senior Managing Director
240.204.5134
jtyler.blue@berkadia.com

PAUL WALLACE

Managing Director
240.204.5135
paul.wallace@berkadia.com

TED HERMES

Managing Director
240.204.5137
ted.hermes@berkadia.com

2601 Woodley Place NW ​ | ​ Washington, DC

© 2022 Berkadia Proprietary Holding LLC

Berkadia® is a trademark of Berkadia Proprietary Holding LLC

Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. This website is not intended to solicit commercial mortgage loan brokerage business in Nevada.

In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. ​ For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing