FOR IMMEDIATE RELEASE
Local Investment Group Acquires Prime Retail/Mixed-Use Property in Brookland Neighborhood
Press Contacts: Ryan Smith, Associate Director (202) 318-6808 | Josh Feldman, Managing Principal, (202) 318-6833 | Ian Ruel, Managing Principal, (202) 318-6844
Washington, D.C., September 26th, 2024– Feldman Ruel, a leader in the marketing and sale of commercial investment properties in the Washington, D.C. metropolitan area, is pleased to announce the sale of 3625-3629 12th Street NE. Located in the rapidly evolving Brookland neighborhood, the property sold for $1,400,000 after a competitive bidding process.
The sellers, Howard Kang and the Estate of Susan Kang, sought to consolidate their portfolio, creating an opportunity for a savvy investor to capitalize on the continued growth of Brookland. The buyer, who preferred to remain anonymous, recognized the property’s potential due to its prime location just 0.2 miles from the Brookland-CUA Metro station, multiple Metrobus routes, and nearby retail amenities and institutions. Over the last decade, Brookland has experienced a substantial influx of development, with prominent firms such as U.I.P., Trammell Crow, Hanover Company, and Menkiti Group driving the neighborhood's transformation.
The buyer, who owns several retail and mixed-use properties across Washington, D.C., saw the acquisition as a strategic addition to their portfolio. With a focus on managing lease-up risks, repositioning operations, and leveraging covered land plays, they anticipate significant future value in the site. The property's proximity to the upcoming Brookland Lanes redevelopment—a 250,000-square-foot project by U.I.P. featuring 337 apartments and ground-floor retail—further highlights the area's investment potential.
Brookland, often referred to as "Little Rome" for its deep ties to the Catholic Church and Italian-inspired landmarks, has historically been a high barrier-to-entry submarket in Northeast D.C. For years, private and institutional owners were hesitant to sell, aiming to preserve the neighborhood’s unique charm. However, as investor priorities shifted and local institutions adjusted their strategies, investment activity surged. With development pressure moving eastward from the northwest, investors have recognized Brookland’s semi-suburban atmosphere, proximity to the urban core, and long-term potential. With two Metro stations, multiple bus stops, and a wealth of educational, social, and cultural institutions, as well as sites for additional single-family and multifamily development, Brookland has all the key markers of a submarket poised for appreciation.
The transaction was facilitated through a competitive bidding process managed by Ryan Smith, Josh Feldman, Ian Ruel, and Adam Costanzo of Feldman Ruel. Multiple offers were submitted by various investors, and the deal was ultimately awarded to the buyer due to their competitive pricing, favorable terms, and proven track record of execution in previous transactions.
Feldman Ruel, with Ryan Smith leading the charge, has now been responsible for the sale of three contiguous properties owned by different sellers along the east side of the 3600 block of 12th Street NE. "For years, we have had the privilege of advising private clients and institutions in Brookland, offering insights on market trends, rent growth, and zoning changes," said Mr. Smith. "By leveraging strong relationships with private clients, institutions, government agencies, and the wider brokerage community, we have successfully navigated some of the most volatile capital markets and completed transactions across all asset classes in the neighborhood. Despite recent economic challenges, demand from buyers as well as lender appetites have remained strong, and we are proud to have played a key role in so many of these transactions. Brookland continues to evolve while maintaining its charm, and we’re excited to be part of its ongoing story."
About Feldman Ruel
Feldman Ruel is a commercial real estate services firm focused primarily on investment sales and property management in the Washington, D.C. metropolitan area and is consistently recognized as a market leader in the industry. Feldman Ruel successfully completes scores of transactions every year making it one of the top investment sales brokerage firms in the area. The experience and relationships resulting from hundreds of successful transactions allow the principals and agents of Feldman Ruel to provide their clients with the most accurate valuations, most effective multichannel marketing, and best advisory services available in its practice areas.