Target IRR Of 15% On Washington, D.C., Metro Commercial Real Estate Offering

The RealtyMogul online investment platform has a new offering. The office building at 2300 Ninth St. in Arlington, Virginia, is a value-add property in a well-known Washington, D.C., suburb that is popular for its easy access to the city and northern Virginia tech center. The building is just 1.5 miles away from Amazon’s new HQ 2 site. 

In addition to Amazon and a number of other tech companies, Boeing’s BA aircraft will open an office in Arlington to house its own tech center. All of this points to strong demand for high-quality office space in Arlington. Rounding out the picture is the proximity to some of Northern Virginia’s most popular residential neighborhoods, many of which are only minutes away from the Ninth Street offering. 

Investment Highlights

2300 Ninth St. is a 68,156-square-foot building constructed in 1970. The project is being co-sponsored by Chigago-based Pearlmark Investment Co. LLC and Falls Church, Virginia-based BoundTrain Real Estate. They are planning a down-to-the-studs renovation of the property to complete its conversion to a fully functioning Class A office property. Including renovations, the entire budget for the project is $34.4 million or $500 per square foot. 

That represents significant savings over the current cost of building a new office building of the same size, which is an estimated $900 per square foot. Another selling point for 2300 Ninth St. is its high walk score of 94 — a result of its proximity to dining, entertainment and shopping. The sponsors are looking to raise just over $9 million from investors to complete the purchase and renovations. 

Details of the offering include:

• Minimum investment: $25,000
• Projected hold period: three years
• Projected internal rate of return (IRR): 15.2%
• Projected equity multiple: 1.53x

About The Project Sponsors

Pearlmark Real Estate is a privately owned real estate investment firm based in Chicago, Illinois. It focuses on Class B and Class C real estate across a number of sectors, including multifamily, office and industrial properties. The firm, founded in 1996, has nearly $14 billion of assets under management. 

BoundTrain Real Estate was founded in 2018 and specifically seeks value-add opportunities in the residential, commercial and industrial sectors. 

Find real estate investment offerings like 2300 Ninth St with Benzinga’s Offering Screener and filter investment opportunities based on your criteria.

Photo: Courtesy of RealtyMogul