The price of real estate in the city’s hottest neighborhood appears to be showing no signs of cooling off, as two local developers last week dropped more than $2 million for less than an acre of land in Scott’s Addition.
Tom Papa of Fountainhead Properties and lead partner Geoff Shudtz of Dodson Development Partners acquired the 0.6-acre site at 3105, 3107, 3113 and 3115 W. Marshall St. for about $2.17 million. The deal closed Jan. 9.
Papa said the group has begun demolition work to make way for The Nest, their planned five-story mixed-use development that will include 188 apartments.
The sellers were a group led by developer Yogi Singh that bought the properties in a package deal in 2016 for $2.5 million. That earlier deal included a ’70s-era building at 3122 W. Marshall St., which Singh’s group still owns and since has converted into modern office space.
Singh originally planned to similarly convert the site’s other two older office buildings, which include two accompanying surface parking lots, but decided against it after receiving several offers for the property.
The property that sold were most recently assessed by the city for $4.4 million, according to property records.
The deal ends nearly a year of planning by Shudtz, who first placed the property under contract in early 2018.
Plans call for The Nest to include mostly one-bedroom apartments sitting above a mix of parking and commercial space fronting West Marshall Street. Amenities would include a shared work space component, a leasing office and a pool.
Richmond-based KBS Inc. has been tapped as The Nest’s general contractor. Walter Parks Architects is designing the project, Papa said. Upon its completion, Dodson Property Management will oversee management and leasing of the complex.
The Nest transaction continues kicks off the new year on a high note when it comes to payouts for prime property in Scott’s Addition.
Shudtz and Papa’s acquisition shows property is still trading for a premium in Scott’s Addition, as it was one of the highest transactions in the neighborhood in recent memory for a pure land deal.
A block west of The Nest site, Washington, D.C.-based Dalian Development, a company with a background in residential and mixed-use projects in dense areas, in May dropped $3.8 million for the city block at 3210 W. Marshall St. in May 2018.
Dalian’s purchase at the time set a new high for property sales in the neighborhood, with the 2.6 acre site averaging about $1.3 million an acre.
Shortly after Dailan’s transaction, Eric Phipps and Bryan Smith of SNP Properties paid a combined $3.7 million for 3022 W. Broad St., and a neighboring parcel at 3012 W. Broad St. Existing structures on both sites will be demolished to make way for a new six-story, 166-unit mixed-use development.
That sales price remains one of the neighborhood’s highest-grossing transactions given the size of the property at 0.7 acres.