901 5TH STREET NORTHWEST TTR SOTHEBY’S INTERNATIONAL REALTY DEVELOPER SERVICES
5TH + I HOTEL RESIDENCES
Location: Mount Vernon, DC Residences: 48, floors 9 – 12 Hotel: 150-key, floors 2 –8 Parking: 80 spaces; two levels Roof terrace + lower level amenities TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
PRODUCT
• 12 story ground up building consisting of 48 residences located on the upper three levels within an SLS Branded Hotel. Modern architecture with classic modern finishes and aesthetics will help define this building as a premier property and enable it to stand out among competitors within the Mt. Vernon and Central DC sub-markets. The current proposed architecture of the building calls for an abundance of glass. This is a design feature that is sought out by today’s buyers and is equated with luxury and quality. • Hotel Branding - A condo-hotel component within the project can be complementary to the residential component. It allows developers to capture that subset of buyers...seeking a turnkey, ownership experience, short-term accommodations and the potential for return on investment. This trend is gaining momentum as more and more of these properties have gained traction and are becoming more commonplace. Having the highly recognizable SLS brand Hotel is an amenity that will appeal to buyers that will want a stylish lifestyle with a turnkey luxury experience. • Location – Located in the Mt. Vernon, New Downtown area. 3 Blocks from the newly proposed Apple Store, just east of City Center, and next to Gallery Place and Chinatown. Close to Capitol Crossing, a new development comprised of a total of five Platinum LEED-certified buildings, 70,000 square feet of which is zoned for retail. • As more millennial/urban dwellers drive less often and own fewer cars, more developers are shifting away from providing on-site parking. This trend although more and more common, limits the buyer profile significantly thus minimizing market share. On-site parking is an amenity that is becoming scarcer in urban developments, offering this feature allows for a targeting of a more affluent buyer and elevates the property over the vast majority of competitors thus appealing to a broader market base as many buyers instantly rule out buildings that lack this amenity.
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
COMPETITION • Re-sales at City Center currently trading at an average price of $941 per square foot with a range of $775 - $1200. • Westlight, 71 stylish Condominiums located in West End, sales are underway and prices are currently $1000-$1500 per square foot. • Residences at the Ritz Carlton, located on 23rd Street NW. These properties are currently trading for and average of $789 per square foot with a range of $725 - $1100 per square foot. • Woodley Wardman, 39 unit building located in the Woodley neighborhood in NW. Trading for $1300$1900 per square foot. Although, this product is positioned higher than anything currently on the market, there will be some overlap in the buyer pool as the choice for luxury living in Washington remains limited. • Four Seasons Residences, no release date known yet. Should trade at highest on the city.
Residences at the Ritz-Carlton
Woodley Wardman
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
Westlight
CityCenter
901 5TH STREET NW
TARGET DEMOGRAPHIC
• Buyer Profile-affluent, upwardly mobile professionals, empty-nesters possible moving from the suburbs (or not) looking for an urban lifestyle but want the luxury and security associated with an SLS level branded property. Expect a strong interest from the international community. We expect this buyer to travel and have many will have second homes. • Why choose SLS? Turnkey hotel lifestyle. Take full advantage of hotel services and amenities. Want to “buy” into a brand they can feel proud of. Safety of investing in a recognizable brand.
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
WASHINGTON, DC BY THE NUMBERS
Overview • • • • •
DC adds over 1000 new residents every month. Current population of 658,000. In a five-year period starting in 2009, the millennial population grew by 22%. Private sector job growth has averaged 2.6% annual growth since 2010. In a 12 month window from August 2015 -2016 , DC Metro added 77,000 payroll jobs, 5th highest in the nation. Unemployment rate from 4.5% to 4.0% same period. This is the third lowest in the nation. • DC Metro is second most active destination for global capital in the nation. • DC ranks first in cities with greenest buildings. 56 million square feet of EPA Energy Star properties. And 60 LEED-platinum certified spaces. Ranked first in energy efficient city per capita.
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
CONDOMINIUM MARKET PERSPECTIVE
Condominium Market Perspective • New condominium sales - 1688 units in 2016 - 1800 units in 2017 • Condominium re-sales 2008 – 2012(five years) are 11,280. Since 2013 (three years), 14,747. • Effective New Condominium sales prices were flat in 2015 at an increase of 1.1%. 2016 increase was 4.0%. • New condominiums actively working on or under construction in 2015,was 4000. In 2016 that number is 2300. • > $1MM Condominium sales YTD is 185 vs 162 • > $2MM Condominium sales YTD is 35 vs 25 • > $3MM Condominium sales YTD is 14 vs 11 • And 60 LEED-platinum certified spaces. Ranked first in energy efficient city per capita.
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
9.9 MONTHS OF INVENTORY (WASHINGTON METRO AVERAGE) Inventory by Submarket | Source: Delta Associates
7.3 Loudon/Prince William 11.0 Fairfax/Falls Church 19.9 Montgomery 6.7 Arlington/Alexandria 10.0 Upper Northwest DC 3.8 Central DC 4.6 Mideast DC 14.0 Capitol East DC 4.1 Prince George’s
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
NEW CONDOMINIUM AVERAGE PRICE PER SQUARE FOOT Inventory by Submarket | Source: Delta Associates
$1,000
$950
$800
$761 $665
$650
$600
$572 $437
$400
$305 $200
$177
$152
$0 Upper NW DC
Central DC
Mideast DC
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
Cap East DC
Montgomery
Arl/Alex
Fairfax/FC
Loud/Pr. Will
Pr. George’s
901 5TH STREET NW
DEMAND AND SUPPLY PROJECTIONS (WASHINGTON METRO AREA CONDOMINIUMS) 6 months ending September 2019 | Source: Delta Associates
DEMAND 4,000
Net Sales: 2,200/year = 6,600 units
MARKET-RATE UNITS
3,500 3,000
SUPPLY
2,500
Planned and may begin marketing by 9/2019: 2,688 units1
2,000 1,500
Under construction and/ or marketing: 2,308 units2
1,000 500
Total = 4,996 units $0 The District
Northern VA
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
Sub MD
1 Probable supply after projected attrition 2 Includes unleased units at project in lease-up
901 5TH STREET NW
NEW CONDOMINIUM AVERAGE PRICE PER SQ FT (SELECTED DOWNTOWN AREAS IN THE US) Third Quarter 2016 | Source: Delta Associates
$2,700
$2,557
$2,400
$2,100
$1,800
$1,419
$1,500
$1,196
$1,200
$950 $814
$900
$791
$761
$735
$665
$663
$650
$600
$427
$300
$0 Manhattan
Brooklyn
San Fran
Upper NW DC
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
Queens
Seattle
Central DC
LA
Mideast DC
San Diego
Cap East DC
Baltimore
901 5TH STREET NW
SALES AND MARKETING STRATEGY • TTRSIR will conduct a focus group consisting of DC’s top agents and brokerages providing feedback on, building amenities, service, pricing, buyer profile, and level of finishes. • Marketing actions consisting of Broker outreach, individual launch event(s) for the brokerage community, prospective purchasers and media • TTRSIR will provide a preliminary marketing schedule with approximate costs and recommended actions. • Utilize SIR Global base to market this one-of-a-kind property through our global affiliates. • Finishes. This will be a very important process as today’s buyers want and expect luxury in details. Final selections and finishes will play a significant role in maximizing both our sales prices and absorption rate. TTRSIR’s sales team will provide examples of finish selections from other SIR marketed luxury projects in Miami, Los Angeles and New York City and/or other relevant market places. • Properly marketed, this unprecedented luxury option offered in this sub-market should yield higher sales prices than previously achieved in recent projects. TTRSIR’s ability to brand this project as a one-of-a kind building, allows for the sales team to command, and to successfully trade units at premium prices, thus maximizing return. TTRSIR strongly feels that the development team simply cannot afford to offer this unique product without true luxury marketing services
LAUNCH • Strategically select launch date dependent upon timing of construction and delivery as well as seasonal. TTRSIR does not recommend opening for sales too early as this action carries with it risk. Pre-selling a building of this caliber may compromise the sales process, which in turn will dilute the brand positioning of this building, thus yielding less than favorable results. Timing will be critical in order to establish momentum and create “buzz”. This strategy executed properly will guarantee maximum sales prices. TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
SOTHEBY’S INTERNATIONAL REALTY
Worldwide Reach Celebrated Reputation Unique Heritage International Marketing Experts Targeted Technology Proprietary Publications Global Media Extraordinary Results
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
DEVELOPMENT SALES PORTFOLIO
One Thousand Museum | Miami, Florida ONE Sotheby’s International Realty
The Woolworth Tower Residences | New York, New York Sotheby’s International Realty Upper Eastside Brokerage
The Lawrence House | Washington, DC TTR Sotheby’s International Realty
The Helicopter Factory | Washington, DC TTR Sotheby’s International Realty
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
Landmark Sale I Elysium Fourteen I Madison Investments
Buyer Representation I The Gibson 3205 Georgia Avenue, NW - Columbia Heights
Buyer Representation I The Flat at IL Palazzo A16th Street + Fuller Street, NW - Adams Morgan
Development Pipeline I 1460 Church Street I Brook Rose 1460 Church Street, NW - Logan Circle
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
CHRIS KOPSIDAS
Chris is Vice President of Developer Services for TTR Sotheby’s International Realty and is responsible for the day-to-day operations for the Developer Services Division. Prior to affiliating with TTRSIR Chris was president and owner of his own real estate firm that specialized in the sales and marketing of luxury developments. In his career, Chris was responsible for overseeing the sales and marketing of nearly 500 million dollars in new construction. A native Washingtonian, Chris has been involved in the real estate industry since 1989. With over 25 years of experience, Chris has consistently achieved tremendous results representing some of the Nation’s leading development companies. This experience has provided Chris with a vast network of developer and builder clients with whom he has built strong relationships. With his experience, Chris has been recognized as an industry leader in providing developer services. With this vast knowledge Chris assists and advises developer clients from feasibility study, product design and implementation, to the management of the marketing and sales process.
Chris started in new development sales in 1990 and went on to successfully sell and manage numerous communities since then. In 2001 Chris was appointed Sales Manager for Evans Farm in McLean, VA, a 125 mixed-unit joint venture between Elm Street Development and WEST*GROUP. Since Evans Farm, Chris has gone on to successfully manage numerous luxury communities in Washington DC, Bethesda, Potomac, and Alexandria. In addition to all TTRSIR new developments, he is also managing sales at 1801 Foxhall, a 27-homesite community in Northwest Washington DC.
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW
MICHAEL ANDERSON HINES
The Sotheby’s International Realty global marketing reach uses the most advanced technology and methods strategically placing Michael at a unique competitive advantage, allowing him to better assist buyer and sellers in real estate transactions. Michael Anderson Hines began his dynamic and successful real estate career more than fourteen years ago. As founder and principal of his own media-marketing firm, OneMarketSpace, Michael represented some of the areas largest developers. After joining TTR Sotheby’s International, Michael was selected to relocate Volkswagen of America’s US Headquarters to Northern Virginia. In addition to working with high-end clients, Michael has a diverse portfolio of clientele, from independent individuals, to the area’s largest developers, investors and corporations. Michael is also a mayoral appointed member of the Board of Taxes and Assessments for the District of Columbia. Michael’s expert negotiating skills bring successful results to all those he represents. Michael holds the GRI, ABR, CRS, and BPOR designations. He is recognized as one of the industry’s most knowledgeable and well respected professionals and has been cited by The Washingtonian, The Washington Post, CBS News and Entrepreneur Magazine as one of the Washington Metropolitan area’s most promising young business professionals. Michael holds a BA of Arts from Morehouse College, several special designations from Howard University, and The University of Lancaster and The London School of Economics.
TTR SOTHEBY’S INTERNATIONAL REALTY | DEVELOPER SERVICES
901 5TH STREET NW