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Page 1: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Thank you

1801 K Street, NW

Suite 1000

Washington, DC 20006

+1 202 719 5000

1600 Tysons Boulevard

Suite 1000

McLean, VA 22102

+1 703 485 8800

6701 Democracy Boulevard

Suite 201

Bethesda, MD 20817

+1 301 214 1144

www.joneslanglasalle-dc.com

©2012 Jones Lang LaSalle IP, Inc. All rights reserved.

All information contained herein is from sources deemed

reliable; however, no representation or warranty is made

to the accuracy thereof.

49 L Street SE

Industry Day

September 28, 2017

Page 2: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Neighborhood ObservationsSeptember 28, 2017

Ballpark

Page 3: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

2

Observations

Source: JLL Research

Rapidly growing, mixed-use, neighborhood with a significant pipeline across uses

Fastest-growing multifamily submarket in the region

Demand for new office space is increasing with the tenant mix diversifying

Retail storefronts are adding activity to the area

The neighborhood has become a safe bet for tenants, residents and investors

In this cycle, rents have significantly reset across property sectors

Page 4: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

3

Context

Source: JLL Research

Page 5: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

4

Overview

Source: JLL Research, CoStar

4,384Multifamily units

4.4%of DC multifamily

inventory

4.2 m.s.f.Office space

3.7%of DC office

inventory

OfficeMultifamily

Parks & Waterfront Walk to Capitol Hill

* Office inventory includes leased space over 20,000 s.f. Green Line MetroSports & Recreation

Page 6: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

5

Who lives in the neighborhood?

Source: JLL Research, ESRI Business Analyst

81% of my neighbors

have a college degree

I am 31 years

oldI spend $63,962annually

I earn $92,357 a year

85% of my neighbors

rent

Page 7: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

6

35%

19%

39%

7%

< $50K$50K-$100K$100K-$200K$200K +

Annual income

Neighborhood resident profile

Source: JLL Research, ESRI Business Analyst

6%

55%16%

7%

16%

0-19 20-3435-44 45-5455 and older

Age profile

14%

5%

36%

45%

< 9th Grade - High School/GEDSome CollegeBachelor's / Associate DegreeGraduate / Professional Degree

Education level

Median age:

31.1

Median income:

$92,357

College-educated

81%

Page 8: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

7

A brief history of neighborhood growth

Source: JLL Research, CoStar

960

1,19

7

1,19

7

1,36

7

1,36

7

1,36

7 1,87

2

1,87

2

3,35

5

4,38

4

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20170

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

4,500,000

Office Inventory (SF) Multifamily Inventory (units)

Federal Gateway & Maritime Plaza

II deliver

Nationals Stadium

completed

2001 2003 2007 2008 2010 2014 20172015 2016

Twelve12, Parc

Riverside deliver

2012

Canal Park opens

Yards Park opens

2011

NAVSEA relocates to Ballpark –

300 M, 80 M, and 1201 M deliver

U.S. DOT HQ

opens Foundry Lofts

delivers

WeWorkopens at 80 M St

3 new apt.

bldgs. deliver

99 M St goes

spec

NAB commits to 1 M

CBS Radio

relocates

5 new apt.

bldgs. deliver

Harris Teeter opens

70&100 Capitol Yards, Onyx

deliver

Page 9: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

8

One of DC’s fastest growing neighborhoods

Source: JLL Research

2,523Multifamily units

under construction

23%New, multifamily

construction in DC

365,000 s.f.Office under construction

5%Office under

construction in DC* Office inventory includes leased space over 20,000 s.f.

Page 10: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

9

Capitol Riverfront MF growth

3,020 units have delivered since 2014, with 2,523 units under construction

Source: JLL Research, CoStar

960 960 1,197 1,197 1,367 1,367 1,3671,872 1,872

3,352

4,384

5,544

237170

505

1,483

1,032

1,160

1,363

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Tota

l sup

ply

(uni

ts) Existing supply New deliveries

Projected

Page 11: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

10

MF Class A DC and Ballpark rents converging

Source: JLL Research, CoStar

$2.08 $2.21

$2.37 $2.39 $2.40 $2.47

$2.64

$2.83 $2.88

$3.14

$2.45 $2.52

$2.69 $2.75

$2.81 $2.85 $2.96

$3.02 $3.05 $3.16

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD

Aver

age

effe

ctiv

e re

nt p

.s.f. Ballpark DC Class A

Ballpark average effective rents grew at an annual rate of 4.7% (2008 - 2017YTD)

Page 12: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

11

MF rents continue to establish new heights

Source: JLL Research, CoStar

One Hill South has re-set the achievable high-watermark in the neighborhood

$2.25

$2.63

$2.77

$2.84

$2.99

$2.99

$3.00

$3.20

$3.21

$3.27

$3.28

$3.31

$3.38

$3.50

$3.70

Parc Riverside

100 Capitol Yards

70 Capitol Yards

909 Capitol Yards

Park Chelsea

Foundry Lofts

Twelve12

ORE 82

Onyx on First

Insignia on M

Dock 79

The Bixby

F1RST

Arris

One Hill South

Year built

2017

2016

2014

Before 2014

Average effective rent: $3.14 p.s.f.

Page 13: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

12

MF market has stabilized quickly so far

Source: JLL Research, CoStar

962

237

0 170

0 0

505

0

1,48

3

1,03

2

712

367

39 142

33 156 27

2

730

1,39

1

12.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD

-200

0

200

400

600

800

1,000

1,200

1,400

1,600

Vaca

ncy

Uni

ts d

eliv

ered

Units delivered Absorption Vacancy

Average vacancy rate (2008-YTD): 11.9%

Page 14: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

13

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Tota

l s.f.

unde

r con

stru

ctio

n

As density increases, office demand follows

BTS and spec development have returned with NAB’s 1 M Street and Skanska’s spec 99 M Street

Source: JLL Research

2018 deliveries

99 M Street

1 M Street

Page 15: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

14

3

4

1

2 1

1

0

1

2

3

4

5

6

2015 2016 YTD 2017

# of

leas

es c

ompl

eted Leases 20,000-49,999 s.f. Leases 50,000 s.f. and larger

Office leasing activity and tenant mix

Source: JLL Research

Ballpark continues to attract contractors and government tenants, but the mix is diversifying (e.g. WeWork, CBS Radio, Pyxera Global, NAB )

Page 16: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

15

Ballpark office vacancy has trended down

Vacancy is slowly declining as private sector and government tenants increasingly consider Ballpark as a viable option

Source: JLL Research

7.4%

16.0%

2.8%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Dire

ct v

acan

cy ra

te

Overall Class A Class B

Page 17: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

16

Retail concentration growing

Source: JLL Research

The Yards

Half Street

M Street SE

The Yards

Hal

f Str

eet

Page 18: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

17

311,000 s.f. of retail in the pipeline

Source: JLL Research, average concessions on 10-year Class A relocation

1. 1221 Van St SE (U/C)26,000 s.f. retail

2. 25 M (proposed)20,000 s.f. retail

8. Showplace Icon Theater (proposed)66,400 s.f.

4. 1250 Half (proposed)55,000 s.f. retail

The Yards

9. The Bower & Parcel O (U/C)20,000 s.f. retail

7. The Garrett (proposed)13,000 s.f. retail

6. Agora (U/C)35,000 s.f. retail

The Yards

M Street SE

431

5

8

2

9

76

3. West Half (proposed)65,000 s.f. retail

5. 99M (U/C)11,000 s.f. retail

Hal

f Str

eet

Half Street adjacent

Page 19: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

© 2017 Jones Lang LaSalle IP, Inc. All rights reserved. The information contained in this document is proprietary to JLL and shall be used solely for the purposes of evaluating this proposal. All such documentation and information remains the property of JLL and shall be kept confidential. Reproduction of any part of this document is authorized only to the extent necessary for its evaluation. It is not to be shown to any third party without the prior written authorization of JLL. All information contained herein is from sources deemed reliable; however, no representation or warranty is made as to the accuracy thereof.

Thank you!For more information, please contact

Tammy ShohamVice PresidentResearch Advisory+1 202 719 [email protected]

Page 20: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Placeholder Image

The Capitol Riverfront

GSA: 49 L Street, SE Online AuctionSeptember 28, 2017

Page 21: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Accessible Location

Page 22: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Riverfront Vision

2003 Anacostia Waterfront Framework Plan

Page 23: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

History

• Map showing location of investments and years

$2.3B Public Investment

Page 24: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

2.8 M7,300

34,0002 75

10Annual visitors

Stadiums

Daytime employees

Residents Retailers

Acres of parks

By the Numbers

Yards Park

Page 25: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Build Out Numbers

37.5 M SF of Development

10M+ SF Office

22,000 Residential Units

1.36M SF Retail

1,600+ Hotel Rooms

2 Sports Stadiums

4 New Parks

Figures produced by:

Page 26: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Capitol Riverfront Tomorrow

500 Acres37.5M SF at Build-out1 Baseball stadium1 Soccer stadium10 Acres of parks1.3M SF Retail28,000+ Residents55,000+ Employees3M Visitors/year1,500+ Hotel roomsHundreds of millions of $$in new sales, property & income taxes

Page 27: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Residential DevelopmentExisting

5,611 Units25 Projects

Under Construction2,890 Units12 Projects

2017 Groundbreaking1,932 Units8 Projects

Foundry Lofts, Forest City Washington, 170 Rental Units

Parc Riverside, Toll Brothers, 287 Rental Units1

1250, Jair Lynch, 439 Rental Units, 2Q 2019

1221 Van, JBG Smith, 291 Rental Units, 4Q 2017/1Q 2018

1900 Half, Douglas, 415 Rental Units, 4Q 2019

The Garrett, WC Smith, 375 Rental Units, 2Q 2020

1Image from jdland.com

Page 28: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

3,7995,456 5,666

9,251780

780 937

1,454

6,000

8,1008,600

13,900

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2016 2017 2018 2019

Condo Units

Rental Units

Population

Population Boom

Page 29: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Development Report – 2Q 2017

Page 30: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Who Lives Here?

$107K30.777%

Average household incomeAverage age

Bachelor’s degree or higher56% Millennials

Source: 2015 American Community Survey 5-year Estimates

Page 31: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Office Market

34,000 Employees

6.2 M Square Feet

95% leased

34,000 Daytime

Employees

$45/sf avgrent

100 M StreetLionstone230,000 SFDelivered 2007

55 M StreetHines255,000 SFDelivered 2009

1015 Half StreetPrudential374,000 SFDelivered 2011

Federal GatewayWC Smith279,000 SFDelivered 2003

Page 32: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Pipeline

99 MSkanska USA220,000 SFDelivery 1Q 18

One MMonument111,700 SFDelivery 3Q 18

DC Water HQDC Water151,000 SFDelivery 1Q 18

25 MAkridge/Brandywine250,000 SFPre-Development

250 M at Canal ParkWC Smith215,750 SF2Q 2020

Page 33: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Transportation

220% ridership increase 2006-2016

35% of employees commute on Metrorail1

10 minute Circulator headways to Union Station

5 Metrobus lines

95,000 annual Capital Bikeshare trips

6% of employees commute by bicycle1

Direct access to I-295 and I-395

36% of employees commute by car1

12016 Capitol Riverfront Perception Survey

Page 34: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Hotel Growth

204

372

567

737

Pre-2015 2015 2016 2017

Page 35: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

7544

Total retailers

Other retail

Food/Beverage Retailers

31

Existing Retail

Page 36: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Existing SF390,000

Under Construction SF233,500

2017 Groundbreaking SF

253,500

Retail Pipeline

F1RST Residences, Grosvenor/McCaffery/CEI26,000 SF Retail, 2Q 17

Agora, WC Smith 35,000 SF Retail, 3Q 17

1221 Van, JBG Smith24,000 SF Retail, 4Q 17/1Q 18

Page 37: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Opening in 2017-2018

The Juice Laundry

Page 38: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

2.9 M

205,000

1,691

836,000

338

SF retail

Residential units

SF office

Hotel rooms

At Build-Out

SF totaldevelopment

Looking South down Half Street from M Street towards Nationals Park

Ballpark District

Page 39: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Parks

10

1

3

5

Acres of parks

Mile of riverfront trail

Marinas/docks

Parks

Yards Park

Page 40: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Placeholder Image

The Capitol Riverfront

Page 41: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Thank you

1801 K Street, NWSuite 1000Washington, DC 20006+1 202 719 5000

1600 Tysons BoulevardSuite 1000McLean, VA 22102+1 703 485 8800

6701 Democracy BoulevardSuite 201Bethesda, MD 20817+1 301 214 1144

www.joneslanglasalle-dc.com

©2012 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

Zoning Overview

Steve CochranDistrict of Columbia Office of Planning

Industry DaySeptember 28, 2017

Page 42: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Thank you

1801 K Street, NWSuite 1000Washington, DC 20006+1 202 719 5000

1600 Tysons BoulevardSuite 1000McLean, VA 22102+1 703 485 8800

6701 Democracy BoulevardSuite 201Bethesda, MD 20817+1 301 214 1144

www.joneslanglasalle-dc.com

©2012 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

Page 43: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Thank you

1801 K Street, NWSuite 1000Washington, DC 20006+1 202 719 5000

1600 Tysons BoulevardSuite 1000McLean, VA 22102+1 703 485 8800

6701 Democracy BoulevardSuite 201Bethesda, MD 20817+1 301 214 1144

www.joneslanglasalle-dc.com

©2012 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

Action Generating Credit Section in Subtitle I, Chapter

8 Governing the Generation

of the Credit

Purpose for which Credit May be

Used

Area(s) in which Credit

may be used (see Figure I

§ 900.9)

Development of residential gross floor area where it is not required or that exceeds a minimum residential requirement of Subtitle I, Chapter 5.

§ 802 Construct non-residential gross floor area in excess of the base permitted non-residential density of the D-3 through D-8 zones.

Same trade area in which the credits were generated.

Reduce the residential requirements of the D-4-R, D-5-R, or D-6-R zones.

Same trade area in which the credits were generated.

Each Residential SF exceeding res. Requirement Credits Generated

1 s.f. of Market Rate Housing 1 credit

1 s.f. of Low-Income IZ Housing 2 credits

1 s.f. of Moderate-Income Non-IZ Housing 2 credits

1 s.f. converted to housing in historic landmark or contributing building 2 credits

OP Contact for Additional InformationSteve Cochran, Zoning & Special Projects [email protected]

CREDITS

Replace TDRs and CLDs

Enable increased commercial density on one site through purchase of non-mandatory residential space from another site with a particular trading area

Trading Area 7 for GSA site, generally bounded by Virginia Avenue, SE; 2nd Street, SE; M Street, SE and Half Street, SW

Chart in Sub. I, Chap. 8 covers 6 credit generating actions and 9 types of credit usage

Page 44: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Thank you

1801 K Street, NWSuite 1000Washington, DC 20006+1 202 719 5000

1600 Tysons BoulevardSuite 1000McLean, VA 22102+1 703 485 8800

6701 Democracy BoulevardSuite 201Bethesda, MD 20817+1 301 214 1144

www.joneslanglasalle-dc.com

©2012 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

GSA Online Auction Process and

Invitation for Bid (IFB)

Tim ShecklerGeneral Services Administration

Industry DaySeptember 28, 2017

Page 45: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

Agenda

I. Site Overview

II. Introduction to Auction Process

III. Auction Process

IV. Transaction Terms

V. Notices and Covenants

VI. Additional Information

49

Page 46: 49 L Street SE Industry Day - gsaauctions.gov€¦ · Thank you 1801 K Street, NW Suite 1000 Washington, DC 20006 +1 202 719 5000 1600 Tysons Boulevard Suite 1000 McLean, VA 22102

• Warehouse building

• Constructed in 1934

• Most recently used for inauguration storage

• Last occupied in 2009

• Located in Capitol RiverfrontBID, near the Navy Yard

• Less than one block fromNavy Yard-Ballpark Metro

I. Site Overview

50

History and Location

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• Square and Lot: 0699 0825

• Lot SF: 29,563 (0.68 acres)

• Building SF: 33,455gsf

• Ward: 6 / ANC 6D

• Zoning: D-5

I. Site Overview

51

Parcel Information

Source: dcoz.dc.gov

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• GSA Online Auctions – A Proven Sales Methodology

- A fair and transparent way to dispose of excess real property

- Sold approximately 3,000 properties worth over $5.7 billion dollars in the last 10 years

• Auctions are administered through www.RealEstateSales.gov

• Participation requires prior registration and posting of a bid deposit

• Information about sale terms is provided in the Invitation for Bids (IFB)

• Additional information about GSA property sales is provided at https://propertydisposal.gsa.gov

II. Introduction to Auction Process

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III. Auction ProcessTerms

• All Cash Sale; “As-Is, Where-Is”

• Auction Start Date: October 2, 2017

• Auction End Date: December 4, 2017 (Soft Close)

• Bid Deposit: $1,000,000

• Minimum Bid $5,000,000

• Bid Increment: $200,000 (subject to change at any time)

• Bid Interval: 24 hours (subject to change at any time)

• GSA reserves the right to - modify the bid increments at any time

- suspend or stop the auction for any reason and without award

- resume the auction or start a new auction at any time

- cancel the sale at any time

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III. Auction ProcessBidder Registration

• Bidders must register online at www.RealEstateSales.gov

• Bidder Registration:

1. Create an online User ID and Password (Note: the User ID is used to publicly identify bids on www.RealEstateSales.gov

2. Complete Bid Form

3. Post a one-time Registration Deposit

• Approval for bid is contingent upon verification of Registration Deposit

• Registration possible at any time prior to the auction closing

• Bidders must allow GSA up to five (5) business days to complete the registration process

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III. Auction ProcessBidder Registration

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Click on ‘Register’

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III. Auction ProcessBidder Registration

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III. Auction ProcessRegistration Deposit

• A $1,000,000 Registration Deposit will be required

• Cashiers Check and Certified Check are acceptable

• Personal checks are not acceptable

• Registration Deposits:

- may be forfeited in case of revocation of bid and/or default

- will be refunded to all but the highest and the backup bidder after auction close

- bidder may request refund at any time prior to auction close, unless high bidder or #2 bidder

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III. Auction ProcessBidding Process

• Types of Bids

- Flat Bid

- Automatic (Proxy) Bid

- Bids executed on behalf of a bidder by an agent require an authenticated Power of Attorney on file with GSA

• Bids may be increased online by the specified bid increment (or greater) at any time until the auction closes

• Submitted bids will be posted to the website immediately, in real time

• Posted bid amounts and associated bidder user names are visible to the public on www.RealEstateSales.gov

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III. Auction ProcessBidding Process

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III. Auction ProcessAuction Closing and Award

• Auction employs a ‘soft close’

• On soft close date, if there is any activity within the last Bid Increment, the auction ‘rolls over’ for an additional Bid Increment Period

- e.g. if bid increment is 24 hours, and there is activity in the last 24 hours prior to auction close, the auction continues for another 24 hour period

• Auction continues to ‘roll over’ until a Bid Increment period ends with no bidding activity

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III. Auction ProcessAuction Closing and Award

• Upon auction closing, GSA evaluates high bid

• If GSA accepts bid, purchaser must produce an additional cash deposit to increase earnest money to at least 10% of the total winning bid within three (3) business days of award

- The registration deposit counts towards the 10% requirement

- Failure to provide funds may result in rejection of bid and forfeiture of registration deposit

• Auction is not an absolute auction, e.g. GSA is not compelled to accept the high bid

• The second-highest bidder (backup bidder) may be considered for award for the Continuing Offer period of 90 calendar days

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• Transaction closing must occur within 60 calendar days after acceptance of bid

• All previously paid monies will be credited toward total purchase price

• Remaining balance of purchase price is payable in the form of

- Cashier’s check

- Certified check, or

- Electronic wire transfer

• Purchaser is responsible for all closing costs, including any escrow and financing fees

• Government’s interest in the property is conveyed via Quitclaim Deed

IV. Transaction TermsClosing Process

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V. Notices and Covenants Overview

The following Notices and Covenants will be inserted in the Deed:

• Environmental

1. Comprehensive Environmental Response, Compensation and Liability Act (CERCLA)

2. Lead-Based Paint

3. Asbestos-Containing Materials

4. Polychlorinated Biphenyls (PCBs) / Mercury

5. Mold

• Transaction Terms

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V. Notices and Covenants Environmental – Site

• GSA warrants that all remedial actions necessary to protect human health and the environment has been taken before the date of this conveyance pursuant to CERCLA

• Property will convey with a groundwater restriction

- Grantee (which term includes Grantee’s successors and assigns) is hereby prohibited from using the groundwater located below the surface of the Property (but may dewater the Property to permit construction in a manner that is satisfactory to DDOE).

- Furthermore, ownership of the groundwater is being retained by the Grantor. Should the Grantee desire to undertake a cleanup of the groundwater to allow for use of said groundwater, or to establish that a restriction on use of no longer necessary (in whole or in part) it will seek the concurrence from DDOE to undertake such an action or study. Should permission for such an undertaking be granted, upon the completion of the proposed action by the Grantee, that is satisfactory to the Grantor, such restrictions will be lifted or modified and the groundwater interests (in whole or in part)will be conveyed to the Grantee. All costs associated with conducting such a proposed action shall be borne exclusively by the Grantee and its assigns or successors, and not the United States. Furthermore, the conduct of such a cleanup action by the Grantee is not within the scope of actions that would make a response action necessary by the United States under CERCLA Sec. 120(h)(3)(A).

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V. Notices and Covenants Environmental – Building

• Lead Based Paint

- A risk assessment or inspection for possible lead-based paint hazards is recommended prior to converting the Property to a residential dwelling

• Asbestos Containing Material

- Bidders are warned that the Property contains asbestos-containing materials

• Polychlorinated Biphenyls (PCBs) / Mercury

- The Property may contain polychlorinated biphenyls (PCBs) resulting from former operations of transformers & light ballasts / gauges

• Mold

- Bidders are notified that mold is present in various locations in the building

• The Buyer agrees that in its use and occupancy of the Property it will comply with all Federal, state, and local laws relating to the above mentioned environmental conditions

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V. Notices and Covenants Transaction Terms

• Crane Swing Agreement

- The Property is conveyed subject to a Crane Swing, Sheeting and Shoring, and Monitoring Easement agreement recorded in the land records of the District of Columbia land records as Document #2015013898, recorded February 13, 2015.

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VI. Additional Information

• Additional details are provided in the Invitation for Bid (IFB) document posted at www.realestatesales.gov and

• For any other additional info:Mr. Tim Sheckler

U.S. General Services Administration

Director, Property Disposal and Utilization Division

National Capital Region

301 7th St. SW, Room 7600

Washington, DC 20407

202-401-5806

[email protected]

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VI. Additional Information

• Auction Website:

https://realestatesales.gov/gsaauctions/aucprvoth/?sl=DCNCR018001001

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Thank you

1801 K Street, NWSuite 1000Washington, DC 20006+1 202 719 5000

1600 Tysons BoulevardSuite 1000McLean, VA 22102+1 703 485 8800

6701 Democracy BoulevardSuite 201Bethesda, MD 20817+1 301 214 1144

www.joneslanglasalle-dc.com

©2012 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

Q&A

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1. How long was the Cotton Annex bid process extended beyond the soft close? (GSA)

- Soft close was January 31st, it eventually closed February 8th

2. How much did the price increase in that period? (GSA)

- Price increased from $6 million on January 31st to the final high bid of $30.261 million

3. How often does the highest absolute bid not win? (GSA)

- GSA is charged to recover Fair Market Value in its property dispositions, but has some latitude to determine what constitutes Fair Market Value. In most cases, the high bid from auctions is accepted, but this is determined on a case by case basis.

4. Are the Industry Day slides available? (GSA)

- Yes, slides will be made available by email and posted on the website

5. Has the Whole Foods been delayed? (DC Office of Planning)

- Yes, due to CSX tunnel construction on 2nd street, east of the Whole Foods. H street needs to be brought to the grade level of 2nd street. Estimated March – April 2018.

6. Is there any historic restriction that will limit development? (DC Office of Planning)

- No, a determination of eligibility was signed by the State Historic Preservation Officer, and the building is not historic.

7. Can you describe the credits in more detail? (DC Office of Planning)

- Credits are required if the property will not be residential and will be larger than 6.5 FAR. A developer must buy development rights from someone who built excessive residential or performed a historic rehabilitation. Subtitle I, Chapters 8 and 9 of the DC Zoning Code discuss how you generate and use credits.

8. Is the 10% deposit refundable should the sale not close following due diligence? (GSA)

- There is no due diligence period after the auction close. Once the auction closes, and the high bid, there is no due diligence contingency. Whatever funds have been deposited will be forfeited should the sale not close.

9. Are bidders required to accept diligence provided?

- Due diligence information is provided in good faith by GSA to provide as much information as possible, but the information is not warrantied, per the terms of the Invitation For Bid (IFB).

Q&A Panel

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Thank you

1801 K Street, NWSuite 1000Washington, DC 20006+1 202 719 5000

1600 Tysons BoulevardSuite 1000McLean, VA 22102+1 703 485 8800

6701 Democracy BoulevardSuite 201Bethesda, MD 20817+1 301 214 1144

www.joneslanglasalle-dc.com

©2012 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.

Thank you

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First Name Last Name Company

Tad Anderson PMG

Michael Bailey Tyco Integrated Security

David Bookhout AvalonBay Communities, Inc.

Steve Chun Lerner

Michael Cohen Lerner

Ron Dalal JBG SMITH

Jeffrey Diamond streetscape partners

Tessa Edison Answer Title and Abstracts

Steven Gewirz Potomac Investment Properties

Daniel Gordon The Hanover Company

Rich Jordan Potomac Investment Properties

Charles Kehler Altus Realty Partners

Alexandra Kirk Skanska

Brady Nolan Urban Atlantic

Chad O'Connor LCOR

Kameel Omar Monument Realty

Daniel Roth Ditto Residential

Sujohn Sarkar Ruben Capital Acquisitions, LLC

Connor Savage JBG SMITH

Jeffrey Sledden JAG

Francis Smyth Lincoln Property Co.

Michael Stevens Capitol Riverfront BID

Al Troup Altus Realty Partners

Greg Van Wie Jefferson Apartment Group

Marc Waddill The Craddock Group

Charles Whitley ParadigmSally Wilson Newmark Knight Frank

49 L Street SE Industry Day Attendees