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Savvy Shoppers Ready to Pounce on Real Estate Deals
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Would-be buyers were reluctant to name specific properties because they didn't want to put them in a negative light or, more likely, didn't want to reveal their hand. One prime area that everyone is talking about, however, is the properties near Nationals Park in Southeast Washington.
As another of my colleagues, staff writer David Nakamura, has documented, sleek new buildings with offices, condos, apartments and retail space have risen around the ballpark, but many remain empty.
Glosserman said prices for land near the baseball stadium could drop from $120 a square foot to as low as $30, making it too cheap to pass up.
Others are looking at the recently burgeoning condominium market north of Massachusetts Avenue in the District.
"There are some busted condo deals that are still lurking out there that could be opportunities in the District as well as outside," said Korhonen, who has $230 million in investor money that he is looking to put to work. Korhonen said not only would he invest directly in properties, but his firm would consider lending to other investors or even purchasing discounted debt from property holders in trouble.
Baltimore, who is looking to invest up to $1 billion in the hospitality sector, loves the District's K Street corridor, which is home to many of the big law firms and lobbyists.
"I don't think you will see as much distress there as you will see near the stadium," Baltimore said. "There will be attractively priced opportunities near the stadium, perhaps because of the Lehman collapse. They were the equity partner for a number of properties there."
Malek said the major hotel chains have reduced their projections for revenue per room and are predicting a decline in profits. If those projections are correct, there will likely be tighter financing standards that could lead to distressed selling, Malek said.
But don't expect fire sales throughout the region. Nearly every real estate maven we contacted said they don't expect the local market inside the Beltway to get a shellacking. The best values may lie in buying vacant land outside the Beltway and waiting for the economy to come back and the population to increase.
"If you have a trophy office building in a great location in downtown Washington, your pricing is probably not going to be adjusted dramatically," Glosserman said. "On the other hand, if you own land in Loudoun County, your pricing has been reduced dramatically."
Thomas Heath writes regularly about Washington's local business community on the WashBiz Blog athttp:/
