Berkadia Hotels & Hospitality has been exclusively retained to offer for sale the fee simple interest in the Holiday Inn Express Washington D.C. Downtown (the “Hotel”, “Asset”, or“Property”) – the only Holiday Inn Express flag in all of Washington, D.C.
Purpose-built in November 2022 with premium concrete and steel construction on a corner-block location (4th and K Street NW), the 14-story Hotel is one of the newest select-service lodging assets in the Nation’s Capital and benefits from a best-in-class upper midscale brand in the heart of a nationally recognized top 25 U.S. lodging market. Furthermore, the Property is ideally positioned to capitalize on significant lodging tailwinds stemming from the impressive growth dynamics of the Walter E. Washington Convention Center, future Chinatown/Gallery Place redevelopment, $515 million of planned Capital One Arena renovations, downtown’s $400 million revitalization plan, and record-setting 2023 visitation/visitor spending, with additional growth fueled by the continued international travel recovery.
The Holiday Inn Express presents an extraordinary opportunity for a new owner to acquire a newly delivered, institutional-quality hotel, offered fee simple, non-union, and unencumbered of management at an attractive basis below replacement cost, and with immediate value-add upside in a submarket with an exceptional 24/7 demand profile. Moreover, a new owner will have the ability to leverage an extensive IHG reservations and rewards system of more than 100 million global members, which is significantly under represented in the District to drive robust top-line performance (IHG accounts for only 7.0% of total keys within Washington, D.C.; see Investment Highlight 2). When combined with a loyalty program that is comprised of either hotels in a non-competing chain scale (Kimpton, Vignette Collection, and InterContinental) or older full-service Holiday Inn product, all of which do not feature a complimenary breakfast, the Holiday Inn Express is primed for outsized market share within its upper midscale/select-service segment.
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WASHINGTON D.C. DOWNTOWN
THE OFFERING
PHOTO GALLERY
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada.
© 2024 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.
WASHINGTON, D.C. DOWNTOWN
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DAN HAWKINS
Managing Director
240.793.0290dan.hawkins@Berkadia.comDC License #SP200201313
JUSTIN STORER
Real Estate Analyst
774.275.7833 justin.storer@berkadia.comDC License #SP40003037
Christian Overton
Senior Director
602.549.9735 christian.overton@Berkadia.comCA License# 01934961
H&H Investment Sales:
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Spring 2019: Broke ground
November 2022: Hotel delivered
January 2023: Affiliate of the developer filed for Chapter 11 bankruptcy due to COVID impact and cost overruns, limiting the ability for the Asset to properly stabilize with a fully invested owner/management team due to financial and operational distress
April 2024: Lender purchased the Property at foreclosure auction.
Asset History/Timeline:
Andy Wimsatt
Senior Managing Director
Head of Hotels
301.529.6057 andy.wimsatt@berkadia.comMD License # 371388
JAKE PIETRAS
Associate Director
410.940.9497 jake.pietras@Berkadia.comMD License #5003787
Matt Raptosh
Managing Director
814.470.9983 matt.raptosh@berkadia.com
H&H Financing:
Connor Wimsatt
Associate Director
240.204.5138 connor.wimsatt@berkadia.com
Ethan Wagner
Senior Real Estate Analyst
814.574.7376 ethan.wagner@berkadia.com
797 SF + prefunction spacewith sweeping views of the city and Hotel’s rooftop garden (located onthe 14th story penthouse)
Meeting & Event Space
24/7 fitness center, business center, complimentary Wi-Fi, digital key
Addiational Amenities
Complimentary hot breakfast,
The Pantry
Food & Beverage
247
Guestrooms
0.25 AC
Land Area
127,400 SF
Building Area
November 2022
Vintage
unencumbered
Management
#4 of 16 hotels in Cranberry Township
Washington D.C. DOWNTOWN
Off-site
Laundry
Structured valet parking (45 spaces)
0-6 hours: $26
6+ hours/overnight: $49
Oversize: $60
THE LOCATION
FORD’S THEATRE
Each year, Ford’s Theatre features four mainstage productions that draw a total audience of abou t 100,000 people
Approximately 650,000 tourists visit the theater annually
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Convention Center
First Convention Center in the world to earn the WELL Health Safety Rating (2022), the first in the northeast, U.S., to achieve the GBAC STAR accreditation.
Washington, D.C. ranked #2 among “Top 50 Meeting Destinations in the United States” by CVENT as the city boasts an impressive convention schedule at the Walter E. Washington Convention Center which was recently awarded the Gold Stella Award from NorthStar Meetings Group as the best convention center in the Northeast region.
703,000 square feet of exhibition spce
198,000 square feet of flexible meeting space
52,000 square foot ballroom, the largest ballroom in the Mid-Atlantic Region
77 Meeting Rooms
Total of 2.3 million square-feet of convention and meeting space
Largest digital signage network of its kind in any conference facility in the US with over 200 digital signage displays
City Center
$850 million mixed-use project in the heart of downtown (0.5 mi from the Holiday Inn Express)
2.5 million SF transit and pedestrian-oriented development
+300,000 SF of retail space
+40 shops including designer retailers such as Hermes, Burberry, Gucci, Chanel, Louis Vuitton
+10 world-class restaurants including Michelin-featured eateries, such as Seven Reasons and Fig and Olive
Palmer Alley – public outdoor pavilion hosting musical/dance performances and ever-changing art-installations
Mount Vernon Triangle
Mount Vernon Triangle is a 17-block, mixed-use area and community improvement district (CID) located approximately a half-mile north of the National Mall. The rapidly developing neighborhood features an eclectic mix of residential buildings, retail options, award-winning restaurants featuring a wide array of global-cuisines, and easy access to public transportation.
8.0 million SF of existing office space
1.3 million SF of retail space
+4,500 multifamily units
Access to the Metro’s green, yellow, and red lines via the Mt Vernon Square 7th St-Convention Center, Gallery Place-Chinatown, and Judiciary Square metro stations
Gallery Place-Chinatown
A vibrant historical and entertainment district, Gallery Place-Chinatown is a dynamic neighborhood in the heart of D.C. featuring authentic cuisines, upscale dining options, an iconic sporting and entertainment venue (Capital One Arena), cinemas, museums, and unparalleled accessibility via three separate metro lines (list the three metro stations). The area is currently slated for a comprehensive $500 million redevelopment that will see the creation of a pedestrian-only public plaza, mixed-use corridors, a new botanical garden, public green space and parks, redesigned streets/alleyways for increased foot traffic, and much more.
30
blocks
130
acres
1,100
businesses
28,500
employees
non-union
Labor
FEE SIMPLE
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Capital One Arena
Capital One Arena is home to the NHL’s Washington Capitals, the NBA’s Washington Wizards, and the Georgetown Hoyas men’s basketball team
Capacity of up to 20,356 fans
Since its opening in 1997, the arena has hosted more than 4,500 events and over 47 million fans
NATIONAL BUILDING MUSEUM
Musuem of architecture, design, engineering, construction, and urban planning
The design was inspire d by two Roman palaces
500,000 visitors annually
MLK JR. MEMORIAL LIBRARY
400,000 SF historic landmark library with a new roof deck
650,000 people visit the library annually
WARNER THEATRE
Warner Theatre is a cultural icon in Washington, D.C.
Seats 1,847 guests
Today, the theater is most recognized as the home to the annual BET Honors ceremony and the Washington Ballet’s performance of “The Nutcracker” every December
THE LIBRARY OF CONGRESS
The Library of Congress is the largest library in the world, with millions of books, recordings, photographs, newspapers, maps, and manuscripts in its collections.
Collection of 175.7 million items
Approximately 2 million annual visitors
3,170 employees
Hosts the annual national book festival in late August, attended by up to 200,000 people
CAPITOL BUILDING
The U.S. Capitol Building is the seat of the United States Congress and is located at the east end of the National Mall.
+1.5 million sf
+600 rooms
+3 million annual visitors
THE WHITE HOUSE
Approximately one mile from the Holiday Inn Express Washington, D.C. Downtown, The White House is the residence and workplace of the President of the United States. Since 1800, every President has lived in the White House.
Self-guided tours are available if submitted to a visitor’s member of Congress within 90 days in advance of the visit
Approximately 500,000 people visit the White House annually
The White House is recognized as the most famous historic home in America
NATIONAL MUSEUM OF NATURAL HISTORY
4.4 million visitors in 2023
Spans 1.5 million SF, including 325,000 SF of exhibition and public space
The museum is responsible for the acquisition and maintenance of over 145 million artifacts and specimens
NATIONAL AIR AND SPACE MUSEUM
Features three virtual reality adventures and five flight/ride simulators
1.9 million visitors in 2023
Seven permanent exhibits are on display covering more than 161,100 SF
SMITHSONIAN AMERICAN ART MUSEUM
Holds one of the world's largest and most inclusive collections of art, from the colonial period to the present, made in the United States
1.1 million visitors in 2023
SMITHSONIAN NATIONAL ZOO
1.9 million visitors in 2023
163-acre site
NATIONAL MUSEUM OF AFRICAN AMERICAN HISTORY AND CULTURE
1.6 million visitors in 2023
Offers more than a dozen unique and inspiring collections
The museum has more than 36,000 artifacts, with about 3,500 on display
The museum spans 350,000 SF in a 10-story building, making it the world’s largest museum dedicated to African American history and culture
HIRSHHORN MUSEUM AND SCULPTURE GARDEN
715,000 visitors in 2023
Features mostly post-World War II art in a unique, 60,000 SF exhibition space
The two-level, outdoor Sculpture Garden covers 4 acres
NATIONAL PORTRAIT GALLERY
Over 23,000 items are in the gallery’s collection
Other than the White House, the National Portrait Gallery has the only complete collection of Presidential portraits
1.1 million visitors in 2023
NATIONAL MUSEUM OF AMERICAN HISTORY
The National Museum of American History is among the most visited of the Smithsonian Museums.
Over 2.1 million visitors in 2023
Responsible for the care and maintenance of more than 1.7 million artifacts and 22,000 linear feet of historical documents
The museum occupies 300,000 SF of space and has 12 permanent exhibits
SMITHSONIAN INSTITUTION BUILDING "THE CASTLE"
58,600 visitors in 2023
Completed in 1855, “The Castle” is the signature building of the Smithsonian and is home to the Smithsonian Visitor Center which offers highlights of each of the Smithsonian’s museums
317 K St NW, Washington, D.C. 20001
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#4 of 16 hotels in Cranberry Township
4.4 million visitors in 2023
Spans 1.5 million SF, including 325,000 SF of exhibition and public space
The museum is responsible for the acquisition and maintenance of over 145 million artifacts and specimens
Michael Weinberg
Managing Director321.319.1419michael.weinberg@berkadia.com
Fee simple, non-union, and unencumbered of management
Offered at an attractive basis below replacement cost in a top 25 U.S. lodging market
Washington, D.C.’s only Holiday Inn Express (Nov. 2022 delivery) and the ability to capitalize on minimal IHG brand saturation in the city
Significant top-line performance and cash-flow anticipated for 2024 with attainable upside
Compelling and immediate value-add opportunities
Core-plus, amenity rich downtown Washington, D.C. location with an exceptional 24/7 demand profile
Washington D.C.’s record-setting visitation statistics, impressive convention calendar growth dynamics, and fully recovered transportation hubs
Poised to capitalize on the future Gallery Place/Chinatown/Capital One Arena transformation, large redevelopment opportunities, and downtown’s $400 million action plan
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Michael Weinberg
Managing Director321.319.1419michael.weinberg@berkadia.com