15 Comment

  • Been curious on what the hold up is. This thing has looked almost done for a while now.

  • i think this is a fairly handsome building.

  • Huh. Weird. Wonder why JBG decided to sell this.

    • There’s a premium for rental property income in busy metropolitan areas. It’s a very stable investment, as boomers look to downsize and we see some flight from the suburbs back into urban centers. Investment firms are buying out a lot of housing right now for cash sight unseen, locking young families out of the market.

      Furthermore, long term trends points to many middle class people not being able to purchase housing due to bad credit, stagnant wages, high student loan bills, etc. People who would have bought a generation ago in their late 20s are now looking at 20 years of renting before purchasing, if they ever buy at all. Unless you have family help or an inheritance, younger people simply are not buying.

      Yes, JBG could easily sell these condos right now, but JP Morgan sees a premium in a longer term strategy of buy & rent. I expect we will see more of these types of transactions – investors build the building then sell the whole thing to a bank or REIT. The builder turns a fat profit in one transaction while the buyer gets a discount because they bought in volume. Win-win for everyone, except the residents.

      The crisis basically setup a perfect storm of turning America from an “ownership society” to a rental society. Banks and investors get to bag the equity. People under the age of 35 are screwed.

      Just my two cents.

      • ehh. in theory you are correct. however, the reality is that there will be an oversupply of multi-family rental units in DC – particularly in the 14th and U Street corridors. That’s not to say that good product in these corridors is not valuable. There is a reason the area is hot that caused the oversupply.

        JBG didn’t suddenly decide to sell. it was a part of the plan. By switching from condos to rentals, they provided their buyers with the flexibility to make their own decision on how to market the units. They deliberately did not take rental reservations in order to maintain this flexibility.

        • Multi-family? It seems like almost all the new units around 14th street are microlofts and one bedrooms.

  • I went to an open house in one of model units. I was not impressed.

    • Sorry….I take back my comment. This is not the buidling I went to the open house in. The building I went to was the one located on the NW corner of 14/R.

  • The new website is up with floorplans, etc now!

  • I am old enough that when I read “District Building” I thought of the DC city offices on Penn Ave, the Wilson Blding, which for decades was called the District Building (not City Hall). So for a second I wondered if there were some suprise deal for JP Morgan to renovate, like Trump at the Old Post Office.

    • Me too! Interesting name to choose for this development.

    • jburka

      When the building was first announced it was called “District Condos,” which was a slightly (and only slightly) less crappy name. Of course, then the developers decided it would make more financial sense (to them or a potential purchaser of the property) as a rental building, so they were stuck changing the name.

  • What about Ted’s Bulletin…..when is is set to open?

  • Really curious to see what these units go for.

  • I think these places look great. Now please, please, please do similar things on North Capitol at Florida Avenue.

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