Marcus & Millichap : Auctions Revered Restaurant Property in D.C. for $7.4M

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Marcus & Millichap Auctions Revered Restaurant Property in D.C. for $7.4M

June 24, 2024

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WASHINGTON, June 24, 2024 - Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of 619 H Street NW, a 17,655 square foot retail property with significant development potential and related FAR located in Washington, D.C. The property sold for $7,400,000.

John Slowinski and Marty Zupancic, investment specialists in Marcus & Millichap's Washington D.C. office, had the exclusive listing to market the property. The Zupancic Group was hired by trustee Wendell Webster to exclusively list and market the property through a Chapter 7 Bankruptcy process. The marketing process yielded nine written offers and culminated in an auction, where four potential purchasers bid on the asset 48 total times. Ultimately, the final winning bid came from Baltimore Midtown, marking a significant investment in the neighborhood's future.

"We're thrilled with this result. It was a hard-fought marketing process for our client and ended up being a real net positive for downtown D.C.," said Slowinski, Associate. "This was a unique situation as we had such a prominent D.C. property up for sale, but we were faced with difficult market conditions and a neighborhood that was going through a period of major uncertainty and change. We stayed resilient, brought a comprehensive buyer pool and executed on a deal that is a tremendous result for the Chinatown neighborhood."

After decades as a staple in Washington D.C.'s dining scene, hosting U.S. Presidents, celebrities, athletes and foreign leaders, Tony Cheng's Mongolian Restaurant faced financial instability when its owner defaulted on the mortgage, leading to a Chapter 7 bankruptcy. With the nearby Capital One Arena initially rumored to be considering a move, the future of the restaurant's building hung in uncertainty. The landscape shifted when it was confirmed that the Arena would stay put, sparking renewed interest in the property.

The auction saw multiple parties vying for ownership, including Monument Realty, a prominent D.C. developer who emerged as the lead bidder with an initial offer of $4.25 million. The auction proceeded with spirited bidding from three other interested parties, driving the price upwards in $50,000 increments and ultimately leading to the $7.4 million outcome.

"This transaction is a testament to our team's ability to wear a lot of different hats, stay nimble and execute when called upon in all situations," said Zupancic, Senior Vice President Investments. "Once it was announced that the Capitals and Wizards were potentially leaving, we didn't give up and pushed even harder to bring a unique group of buyers, including experienced developers, local restauranteurs, private investors and more. We leveraged connections with regional and national brokers and buyers, executing on the best and only playbook to get a deal like this done."

The sale not only secures the future of the iconic building but also underscores the confidence in the area's revitalization efforts. As the neighborhood prepares for future developments, including enhancements around the Capital One Arena, stakeholders remain optimistic about further growth and prosperity. The transaction represents not just a change in ownership but a new chapter for a cherished piece of D.C.'s culinary and cultural history, set against the backdrop of evolving urban renewal plans.

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About Marcus & Millichap, Inc. (NYSE: MMI)

Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2023, the company had 1,783 investment sales and financing professionals in over 80 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 7,546 transactions in 2023, with a sales volume of approximately $43.6 billion. For additional information, please visit www.MarcusMillichap.com.