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“Washington is an exciting city now,” says Michael Darby, who along with Jeffrey Neal, is a principal at Monument Realty. “It ranks with the best in the country … it’s different than 10 years ago.”
And home buyers are feeling the excitement, as evident by the demand for condominiums not only in DC, but also in neighboring towns, such as Arlington and Reston in Virginia and Silver Spring in Maryland. “There’s a major shift from rentals,” he adds, and a shift in who is buying the new condominiums, which range in size, for example, from a 500-square-foot studio to a 5,000-square-foot luxury penthouse.
There are different groups of buyers, including those who jump in early to own before construction begins and who may or may not be speculators looking for appreciation gains and those who want to own a place closer to work and who plan to actually live there. This last group includes first time home buyers or young professionals and empty nesters or older couples looking to enjoy DC’s amenities without the commute. Everyone is gravitating to the city, Darby says. Some older couples are selling their 6,000-plus-square-foot homes and moving closer in to enjoy what the city has to offer, he adds.
Many units, such as The Connecticut which is an existing 157-unit luxury apartment building being converted to condos, are mainly owner occupied. The location of The Connecticut in Cleveland Park sells itself where owners can have all the benefits of urban living right out the door. Views of Rock Creek Park enhance the short walk to the Metro, shops and restaurants.
Other buildings undergoing conversions are landmarks, such as The Watergate Hotel, which will include Belles Rives at The Watergate, a 133-unit luxury housing cooperative through the partnership of Monument Realty and Lehman Brothers. “Different people look for different products,” Darby says, and Belles Rives at The Watergate is attracting attention due to its notoriety. The modern design of the building was controversial when it was built, but now the designs of the high-end one-bedroom, one-bedroom with den and two-bedroom units will reflect the dramatic curved walls and formations created by the balconies. Exceptional views and amenities, such as European-style appliances, are attracting buyers from all over the world, Darby adds. “They want to own a part of Watergate.”
The Odyssey in Arlington, developed by a partnership of Monument Realty and Lehman Brothers, and Dumbarton Place in NW, a partnership of Monument Realty and The Carlyle Group, offer unique features. Platinum Penthouse Suites at The Odyssey feature walls of windows, while Dumbarton Place, which was originally constructed as office space, is more traditional DC with 36 boutique-type residences.
The drop in interest rates has brought more people into the urban buying market, Darby says, with increased demand starting about two-and-a-half years ago. “The amount of demand was a shock to a lot of people,” he adds. But this shift is also due in part to necessity where condos have become one of the very few options for first time buyers, says Matthew Blocher, director of marketing for the JBG Companies.
One building that is part of this boom is the Atlas Condominium developed by EQR-JBG 2440 Residential LLC, a member of the JBG family of companies and located in DC’s West End near Georgetown. A high-tech Resident E-Lounge with wireless Internet access and a landscaped courtyard are among the many features offered, while at the Silverton Condominium in Silver Spring, developed by Silver Spring Square LLC, a member of the JBG family of companies, the 210 residences come with a flat screen television. This building also integrates the historic Canada Dry building facade into its design.
Some designs are winning awards, too, such as the FFL Monument Award given to the Midtown Condominiums for the Best Condominium Five Stories and Above presented by the Northern Virginia Building Industry Association and the Maryland-National Capital Building Industry Association. This “vertical planned community” consists of three blocks of condominiums, lofts and apartments with 50,000 square feet of ground floor retail in the two 21-story buildings. This urban neighborhood setting in the heart of Reston Town Center will include a 1.25-acre park designed by Sasaki and Associates. Midtown East sold in a couple of months with Midtown West as well as penthouses now for sale. Loft homes will be introduced this year.
Apartment and condominium living combine in many areas including in Baltimore at Spinnaker Bay and in SW at the Residences at Park Place. Southwest DC is an area currently undergoing rejuvenation and offering competitive pricing.
