Capitol Riverfront:
If You Build It, Will They Come?

October 24, 2008
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by Mark Wellborn

Borders: South Capitol Street, I-295, 11th Street and Anacostia River
ZIP code(s): 20003
Pricing data: Capitol Riverfront real estate (Redfin)
Map: Click here for interactive Google Map

Capitol Riverfront

The Nationals Stadium is just the beginning. When all is said and done, the Capitol Riverfront neighborhood that surrounds DC’s new baseball stadium will feature 25 million square feet of development including 9,000 residential units, 15 million square feet of office space, 900,000 square feet of retail and 1,200 hotel rooms. While only a fraction of those things have been completed, we decided to see what the neighborhood looks like in the midst of transition. (A few weeks ago, UrbanTurf published an article updating the progress of developments in the Capitol Riverfront. This piece is an entire overview of the real estate landscape in the neighborhood.)

Demographics

There are only about 1,200 residents currently living in the Capitol Riverfront and that number is expected to increase to 2,500 by the fall of 2009. Currently, 30 percent of the households have children and the median age of people living in the area is 36. Needless to say, this is an area where the demographics will change significantly as the population increases.

Property Prices

The median listing price for homes on the market in the Capitol Riverfront neighborhood is $410,000. Although most of these properties are condos (and brand new condos at that), the median price per square foot of $416 compares favorably to neighborhoods like Capitol Hill ($447) and Logan Circle ($501).

There is a two-bedroom, 2.5 bath townhome on the market for $638,800. The 1,500 square-foot home is located at EYA’s Capitol Quarter project and will be available for move-in the summer of 2009. The three-level home will have hardwood floors, Energy Star appliances and will be just a few blocks from Nationals Stadium. For the full listing, click here.

There is a one-bedroom, one-den condo on the market for $363,900. The 787 square-foot property is at The Velocity at 1025 First Street SE. The unit has 9-foot ceilings and an underground parking space, and the development has an outdoor pool and an exercise room. For the full listing, click here.

The Jefferson and The Axiom

Market Fundamentals

There are currently 1,700 residential units in the Capitol Riverfront, and by the end of 2009 there will be 700 more. The overwhelming majority of these are condos, however there are a handful of townhomes as well.

The Capitol Riverfront is such a new area that it is difficult to analyze how the market has faired over the past few years. However, there is a phenomenal amount of residential development that is in the works or in the planning stages that will attract first-time home buyers and investors in the coming years. Although it has not delivered yet, the Capitol Quarter Townhouses, a development being built by EYA, have already seen some appreciation.

“I would say that those people who bought during the first release have seen about a $100,000 value increase on their homes,” A.J. Jackson, EYA’s vice president of land acquisition, told UrbanTurf. “They were about $530,000 when they were released and now comps are selling for $635,000.”

Jackson also noted that, despite the economy, the projects that are planned for the Capitol Waterfront are still on schedule because there is a combination of public and private financing that is moving things forward.

“There is a huge amount of development that is planned but most of what is in the works are public and private partnerships and that means that stuff is going to happen regardless of what the market is doing,” he said.

Nationals Stadium

Insider Tips

There are not that many insider tips that can be offered about the Capitol Riverfront. You can live pretty much where you want at this point to suit your preferences.

“Do you need to be closer to the green line or blue line? Do you want to be close to where the restaurants will be or do you want to be in a quieter area? Do you want to live in a condo or do you want to be in a single-family home?” A.J. Jackson asked rhetorically. “Things are so new down here and the design is aimed to be so convenient that you can choose what suits you best.”

Despite this flexibility, the area remains pretty desolate and everyday services like a pharmacy, grocery store and dry cleaners are still pretty hard to come by. A year from now, these things will have likely moved in, but presently many neighborhood residents are having to venture outside the neighborhood for such amenities.

Navy Yard Metro Station

Parking & Transportation

Most of the developments in the Capitol Riverfront will provide off-street parking for their residents, however some will not. And it is too early to tell what the street parking situation will be once everything is built out.

The Capitol Riverfront is serviced by the Navy Yard station on the green line. From June 2007 to June 2008, the average weekday ridership at the Navy Yard stop increased by 6,148, or 24 percent of the total Metrorail system-wide growth. Much of the increased traffic was due to stadium traffic; something to keep in mind is that during games, the station can get quite clogged with people. The Circulator bus service to Union Station will begin in 2009 (the N22 bus route currently runs along that route).

Bottom Line

Even though the Starbucks and Five Guys are already in place, it is going to be a couple years until people make the Capitol Riverfront a destination for shopping, restaurants and nightlife. And that timeline could be longer if the goals for many of the planned projects turn out to be too optimistic. Update: An October 29, 2008 article from The Washington Times says that the current economic turmoil has halted the progress of many developments in the Capitol Riverfront area.

That said, the opportunity to invest early in a neighborhood that already has great access to Nationals’ baseball and has the makings of the next Penn Quarter is probably too good to pass up for many prospective buyers.

Quick Answers

Noise Level
Very low, unless the Nationals are playing.

Good Buildings to Live In
The Jefferson, The Axiom and Onyx on First.

Closest Grocery Store
Safeway, 401 M Street SW (about half a mile away).

Photos & Resources

Capitol Riverfront Business Improvement District — This site provides a comprehensive timeline of residential, office and retail projects that are being built in the Capitol Riverfront.
JDLand — A website that follows the developments in the Capitol Riverfront.