National Zoo-Adjacent D.C. Apartment Complex Sells For $66M
The giant pandas may be leaving the National Zoo, but investors are still hungry for apartments located around the Smithsonian's wildlife park.
The Connecticut Plaza Apartments, a four-building complex directly adjacent to the zoo, sold for $66M from National Development to StoneBridge Investments, documents posted to the D.C. Recorder of Deeds show.
The property was built in 1927 and renovated in 2020. StoneBridge Investments, a national firm that is unrelated to local developer Stonebridge, plans to make additional upgrades to amenities and units over time, Director Will Bateman said in a release, adding that the firm was drawn to its “irreplaceable location.”
“Opportunities to buy such generational assets like Connecticut Plaza are rare, and we are excited to add such a special core holding to our portfolio,” Bateman said. “The project is made up of four timeless and architecturally significant buildings, and it occupies a prestigious position next to the National Zoo.”
The four buildings are located at 2301 and 2331 Cathedral Ave. NW and 2901 and 2915 Connecticut Ave. The complex houses Lillies Restaurant & Bar, and amenities for residents include rooftop terraces, a 24-hour fitness center and a business center.
Eastdil Secured's Alan Davis and Brenden Flood represented the seller. Massachusetts-based National Development said in a statement that the asset was part of a portfolio it acquired “many years ago” with Beacon Communities and ERI. Deed records show the property last sold in 1975.
“The sale is consistent with a long term plan to dispose of these assets over time,” National Development Senior Vice President of Capital Markets Bryan Clancy said in a statement.
National Development has developed over 30M SF of commercial real estate over the last four decades, primarily in New England, according to its website. The Boston Business Journal ranks it as the fifth-largest commercial developer in Massachusetts.
The firm secured a $33.8M loan backed by Connecticut Plaza in October 2022, deed records show. StoneBridge Investments Managing Partner Kees Bruggen said in the release the buyer assumed the existing debt on the property, which “significantly mitigated our risks in the face of such a volatile financial market.”
The volatile financing market has dramatically slowed the overall pace of multifamily investment sales in the D.C. area. Through the first half of this year, eight multifamily deals closed in the region totaling $736M, down roughly 39% year-over-year, according to Delta Associates.
