Ward 7 Mixed-Use Property Trades For $13.5M, A 45% Increase From 2013 Sale
A shopping center fully leased to retail, medical and office tenants near Fort Davis Park in Ward 7 has just sold for well above its previous value as developments move forward in the surrounding area.
Gas station magnate Joe Mamo, through the entity Penn-Bama LLC, acquired the Fort Davis Center at 3863 Alabama Ave. SE for $13.48M. The property last sold in 2013 for $9.3M, according to property records, and its latest assessed value was $7.6M.
Edge Commercial Real Estate's Joe Friedman and Kelly Lawrence brokered the sale on behalf of the seller, Atlas West End Ft. Davis LLC. Friedman and Lawrence recently joined Edge from Metropolis Capital Advisors, where they began working on the deal.
The 44K SF mixed-use center is occupied by the D.C. Department of Human Services, Children's National Health System, Fort Davis Dental Associates, KRA Corp., FlexCare Pharmacy and Lee's Mini Market. It was built in 1949 and last renovated between 2007 and 2013 and also features a 60-space surface parking lot.
The property is about a half-mile from the Penn Branch Shopping Center, which Jair Lynch acquired in 2016 and began renovating, with plans for a second phase that could add multifamily and a grocery store. It is about a mile from Skyland Town Center, where WC Smith and Rappaport began construction earlier this year on a project that is slated for 500 apartments and 320K SF of retail at full build-out.
“The new owner acquired a well-maintained and stabilized asset featuring long-term tenant commitments in an emerging section of Washington, D.C. with a high barriers to entry,” Friedman said in a release. “Fort Davis Center includes tenants that provide essential services to the local community and the asset is expected to increase in value over the long-term.”
Mamo has built a gas station empire, with his portfolio of over 60 properties comprising, at one point, more than half of the District's gas stations, sparking antitrust lawsuits from D.C.'s attorney general and bills from D.C. council members. He also owns a property in Bloomingdale with plans for a mixed-use development that has been stalled for years.
“This acquisition has given us an opportunity to invest in this vibrant community which is continuing to attract business and development,” Mamo said. “We are proud to be a part of Ward 7’s revitalization.”