8th Street

Changing Underachieving Retail into 10 Luxury Condos

Can we create enough space to achieve financial viability?

A family office looking for opportunities within their existing real estate portfolio wanted to upgrade an underperforming two-story retail building in a Washington DC historic district. The architect and zoning attorney they had engaged for the project couldn't find a path to achieve enough density to make it financially viable. NewCity used a combination of design strategies to achieve the required value, changing the use, increasing density, and adding a great deal of new space.

New City Project Phases

Strategy

Assembly

Transformation

Value Realization

By squeezing in extra square footage and maximizing saleable space, NewCity designed a project worth pursuing. With historic and permitting approvals secured, NewCity paved the way for profitable real estate transformation. The project is in construction.

150%

increase in building size

85%

building efficiency

10

luxury
units

Change use from commercial to residential
Increase unit density from 2 to 10
Minimize circulation space through the use of a single-stair design
Maximize value by creating four duplex units with private roof decks and other units with outdoor spaces
Bring extra light into cellar units to increase their appeal

Value Creation Strategies

Project Details

Project Type

Conversion of a retail building into ten residential condo units. Business Context

Transform an aging existing income property in a premium location into high-value for-sale condominiums.

Starting Point

The family office that owns the property had tried working with a zoning attorney and architect to identify a profitable project strategy but was unsuccessful. It was evaluating alternative rental options for the space when it engaged NewCity to explore the expansion project.

Key Challenges

Navigate the neighbor, community, and historic review board to secure building design approval.
Overcome the property's elevated cost-basis due to its excellent location.
To ensure financial viability, develop plans that use a single stairway and minimize circulation space.
Address complex challenges for unit design and meeting fire code.

NewCity Alchemy

By managing a complex project through design, community engagement, and entitlement, NewCity created a financial opportunity where other professionals had failed. A little-known exception in the code permitted a four-story structure with a single stair. And, NewCity unlocked multiple ways to create high-value space, making the resulting unit sizes and sales yields worth the investment risk.