Two years ago, Kettler kicked-off construction of the $80 million luxury apartment community at 450 K St. NW in Washington, D.C., and now the company has completed the development of the 233-residence mixed-use project and sold it to Ogden CAP Properties L.L.C. for $106.5 million.
A 13-story tower, 450 K marks a handful of firsts. The smoke-free property, which also features 6,500 square feet of ground-level retail space, was McLean, Va.-based Kettler’s very first residential high-rise development in the District, and it is also the first property to feature the developer’s m.flats brand, which focuses on efficient design. Additionally, 450 K holds the distinction of being New York City-based Ogden CAP’s first investment in Washington, D.C.’s multi-family market.
Kettler’s disposition of 450 K, however, does not mark the end of its connection to the LEED Silver-qualified property. A Kettler subsidiary, Kettler Management, has entered into an agreement with Ogden CAP to oversee leasing and management of the new building.
HFF orchestrated the sale of 450 K of Ogden CAP, and almost certainly fielded more than a few offers, as apartment property is hot property in Washington, D.C.
“Buyer demand exceeds the limited amount of for-sale inventory, and listed properties are receiving multiple bids,” according to a third quarter report by Marcus & Millichap Real Estate Investment Services. “Investors remain interested in acquiring apartment assets in the Washington, D.C., market because of the metro’s strong demographics and steady rent growth.” Bolstering the market are rising employment and an increasing population of young professionals who are priced-out of homeownership. The result is a tight market with high rents; metropolitan Washington, D.C., is expected to end the year with a vacancy rate of 5 percent and a 2.5 percent year-over-year increase in effective rental rates.