The District Source reports that the landlord of the Museum Square Apartments at 401 K Street NW will not renew their Section 8 contract when it expires in September. Instead they have notified the District of a TOPA Offer of Sale with a $250,000,000 price tag. Tenants have been notified that they can purchase the building at that asking price which calculates out roughly to $830,000 per unit.
The asking price clearly is driven more by the redevelopment potential of the site than the value of the current apartment building which is assessed at $32.5 million. This would lead one to believe that this is a precursor to redevelopment. Razing and redeveloping the site, which would undoubtedly put the parking underground, could maximize the lot under zoning and potentially triple the residential density. This additional density plus the new ground floor retail mandated by the K Street overlay would do wonders for transforming the Mount Vernon Triangle into even more of a walker’s paradise.
Of course displacement of the current tenants is the downside. It is possible there will be a plan to include a percentage of affordable units in any new redevelopment. For the most part the revitalization of Mount Vernon Triangle has primarily been achieved through redevelopment of vacant buildings and parking lots (hence this blog’s slogan of Not Just Parking Lots Anymore), but this would potentially be the first redevelopment with a consequence of large scale resident displacement.
Hat Tip: JDG