Penn Quarter:
DC's Times Square

• September 22, 2008
• 1 Comment

by Mark Wellborn

Borders: Pennsylvania Avenue, New York Avenue, Massachusetts Avenue, 3rd Street and 12th Street (rough estimates)
ZIP code(s): 20004
Pricing data: Penn Quarter real estate (Redfin)
Map: Click here for interactive Google Map

Penn Quarter by otavio_dc

If you had asked a cab driver to take you to the Penn Quarter in the early 1990s, he probably would’ve corrected you, and explained that Penn Station is in New York City. That is because this downtown DC neighborhood—which is now the site of high-end condo developments, expensive restaurants and DC’s largest sporting venue—did not really exist back then. However, what was once a drab set of city blocks dominated by office buildings has been transformed by the Pennsylvania Avenue Development Corporation into one of the most sought after destinations for condo buyers in the District.

Demographics

The population has grown 37 percent in the Penn Quarter since 2000, according to Redfin, a testament to the area’s growing popularity. It is also a zip code for single folks, as only 15 percent of the homes have children, and about 30 percent of the population is between the ages of 25 and 40.

Property Prices

The median list price for homes in the Penn Quarter is $449,000, however the median price for homes that have sold over the last three months is $419,000, an indication that homes are selling for below asking. The median price per square foot in Penn Quarter is currently $508 which compares favorably to other high-profile neighborhoods like Adams Morgan ($516) and Georgetown ($713).

There is an 830 square-foot one-bedroom condo on the market for $405,000 at The Clara Barton at Penn Quarter located at 616 E Street. The bedroom in the unit is very large and can fit a Queen bed, side table, a large wardrobe and a desk. The living room and kitchen have large windows that overlook a courtyard, and there is a wide breakfast bar in the kitchen. The building has a rooftop pool, a screening room and a lobby with a 24-hour doorman. For the full listing, click here.

There is a 1,300 square-foot two-bedroom condo on the market at The Residences at Gallery Place at 777 7th Street for $699,000. The penthouse has three balconies, huge windows and large bedrooms compared to other properties in the neighborhood. The kitchen has all new appliances and granite counters, and it is in close proximity to a variety of Metro lines which is good because the unit does not come with a parking space. For the full listing click here.

Verizon Center by afagen

Market Fundamentals

The revitalization of the area that has become the Penn Quarter was put in motion by the Pennsylvania Avenue Development Corporation whose goal was to build a mixed-use neighborhood of residences, offices, retail spaces, theaters and restaurants in new and renovated buildings. The movement began in the 1980s, but really gained momentum in 1997 when the Verizon Center was built. Part of the strategy involved retaining certain cultural elements of Chinatown which falls around Penn Quarter’s main intersection of 7th and H Streets while improving upon the area’s grittier aspects. The corporation did an admirable job as the Chinatown gate and abundance of Chinese restaurants are still in place, and many of the new buildings have signage in Cantonese, a nod to the neighborhood’s cultural legacy.

From 2000 to 2005, condo developments were going up in the Penn Quarter at an astonishing pace, and now the area is saturated. “The Penn Quarter is almost exclusively condos, retail space and office space,” area broker Jeffrey Creswell told UrbanTurf. “There are some row houses but honestly in the next ten years those will be gone.” The statistics confirm Creswell’s statement: of the 106 properties on the market right now, 101 are condo units.

Creswell noted that the condo market in the area is doing well right now having bounced back from when it was “in the tank” in 2005. However, a quick look around gives you the idea that developers are anxious to get rid of their remaining units as there are signs for discounted properties everywhere. Additionally, the area has seen a drop in property values over the last three years, so chances are that if you bought back then, you have lost on your initial investment.

Chinatown by Eamon33

Insider Tips

The Penn Quarter is sometimes referred to as DC’s Times Square because of its splashy, always-on atmosphere. It is a hub of activity, and major retailers are taking note of its popularity. Rumors abound that Apple is looking to open one of their wildly popular stores around 7th and H Street, and there have also been rumblings that Whole Foods and Balducci’s might be opening up shop as well. The arrival of these stores would likely mean an increase in property values across the board.

While the listing prices for luxury condos in the Penn Quarter might not be extraordinarily high, buyers will pay for the amenities. “Condo fees are very expensive down here as opposed to Dupont,” Creswell said. “When you don’t have elevators and swimming pools, condo fees are lower and most of the condos in the Penn Quarter have these types of luxuries and then some.”

Atrium of National Portrait Gallery by Ken Lund

Parking & Transportation

Unless you have a reserved space, it is not worth bringing your car to the Penn Quarter as finding street parking consistently is virtually impossible.

The good news is that access to nearly every major Metro line is unparalleled if you live in the Penn Quarter. You are walking distance to the red, green and yellow lines (Gallery Place/Chinatown) as well as the blue and orange lines (Metro Center). 

Bottom Line

If you are in the market for an upscale condo in a section of DC that seems to never sleep, then the Penn Quarter is probably your best bet. Furthermore, keep in mind that developers are looking to get rid of their remaining inventory at a lot of these buildings, and, as such, there are a lot of deals out there.

Quick Answers

Noise Level
High. The Penn Quarter is a zoo during the day and bustling at night, so the noise is constant.

Good Buildings to Live In
Residences at Gallery Place, The Clara Barton at Penn Quarter

Closest Grocery Store
Safeway, 490 L Street

Neighborhood Picks

Best Place for Greek and Lebanense Tapas — Zaytinia, 701 9th Street NW
Best Place For Those Giving Up Coffee — Teaism, 400 8th Street NW
Best Place to Get the Cheese for Your Grilled Cheese — Cowgirl Creamery, 919 F Street NW
Best Place to Watch the Skins Play Before the Wizards — Bar Louie, 701 7th Street NW
Best Place for a First Date — Atrium at the National Portrait Gallery, 8th and F Streets
Best Place to Find Heirloom Tomatoes — FRESHFARM Market, 8th Street between D and E Streets

Photos & Resources

• Penn Quarter Living — A comprehensive blog about the Penn Quarter

1 Comment

1. Tom Fark said at 3:22 pm on Tuesday September 23, 2008:

   “developers are looking to get rid of their remaining inventory”

   Except maybe for the Residences at Gallery Place (which look like resale), I am not sure which building you are talking about? What have I missed?

Join the discussion