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The value underpinning the growing trend of co-living multifamily properties in D.C. will soon be tested, with two Common properties hitting the market for sale.
Marcus & Millichap announced Monday it was retained to market the Common Monroe and Common Richardson properties for sale. The properties are both owned by Bethesda-based Outlier Realty Capital, property records show.
Outlier redeveloped a historic church building at 3431 13th St. NW in Columbia Heights into Common Monroe, which opened last year. The 17K SF building has 46 co-living bedrooms and 37 bathrooms spread across eight co-living-style apartments.
The asking price for Common Monroe is $10.5M, equating to a 5.45% capitalization rate, according to a Marcus & Millichap spokesperson.
The Common Richardson building opened in 2017 at 410 Richardson Place near Shaw, the co-living company's first building in the District. The 11K SF property features four six-bedroom apartments in adjacent buildings.
The asking price for Common Richardson is $5M, with a capitalization rate of 5.65%, the spokesperson said. The properties, which are both master leased to New York-based Common, can be purchased separately.
Common has continued to grow its footprint in the D.C. area this year. In April, it announced it took over a 99-unit, 239-bedroom co-living space, part of the i5 Union Market building, from competitor Quarters, which filed for bankruptcy in January. The move was part of a larger strategy by Common to take over thousands of units nationwide from other co-living operators.
The co-living concept is still relatively new to the D.C. market, and Marcus & Millichap said these properties would represent the first purpose-built co-living assets to trade on the D.C. market.
"For real estate investors, these two assets are exciting opportunities to acquire not only newly-built, well-located multifamily product in the heart of D.C., but also assets that achieve strong fixed monthly cash flows with minimal landlord responsibilities through the master leases, guaranteed by Common," Marcus & Millichap Senior Associate Dennis Cravedi said in a release.
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