WASHINGTON — In Manhattan, in a LEED Gold-certified building that overlooks the Hudson River in New York鈥檚 trendy Tribeca/Battery Park neighborhood costs around $4,600 a month. A few of the building鈥檚 amenities include a pool, a fitness center and a children鈥檚 playroom.
Residents in San Francisco can on the city鈥檚 central Market Street in a development that boasts a 7,000 square-foot fitness center, two spa rooms and a direct tasting bus to Napa Valley for about $4,500 a month.
Now, D.C. is jumping on the luxury apartment bandwagon.
At , the latest high-end luxury apartment to hit the market in the District, prices for a one-bedroom loft with a den start at $3,925 a month; a 3,183 square foot three-bed, three-bath unit rents for $9,500.
鈥淚t鈥檚 certainly at the high end of the District鈥檚 rental market,鈥� says Jeffrey Kayce, vice president of , the company that manages the new mixed-use development at Wisconsin Avenue and Newark Street, just north of the Washington National Cathedral.
鈥淏ut we鈥檙e comparable to other new product that鈥檚 out there with similar mixed-used communities with so many great amenities,鈥� adds Juliana Thomas, general manager of the new development.
In the last several years, D.C. has seen a boom in new apartment construction to accommodate the city鈥檚 growing population. (Since 2005, the District has added almost 77,000 residents, .) According to , 1,721 apartments were recently completed or are under construction in Tysons Corner. In NoMa, that number is 1,820 units, and around Nationals Park, 2,242 units are now available or will be soon.
Many of these new rentals are marketed as luxury units. Amenities range from a 24-hour concierge to pools and fitness facilities, to creative spaces (Archstone First and M has a ) to a .
Will Rich, senior vice president and multifamily practice director for the commercial real estate firm , refers to these new luxury rental units as Class A apartments. In D.C., the average price for a one-bedroom Class A apartment is $2,000 per month, Rich says. For a two-bedroom, the monthly rent average is $3,000.
Despite the boom in new luxury apartments, the city has only recently seen a rise in the number of high-end luxury rental residences 鈥� and these addresses come with a high price tag.
鈥淚t seems as though almost every building that鈥檚 constructed now is considering itself to be luxury, but there is quite a difference between an $8,000 rent and what you would typically find in the District of Columbia,鈥� Rich says.
Apartments at in Northwest D.C.鈥檚 Woodley Park neighborhood are priced up to $12,000 a month. Of course a lease comes with amenities such as a pet spa, an infinity pool and a landscaped rooftop terrace. 聽 that the building is meant to appeal to foreign diplomats and other transients with a sizeable income.
At in downtown D.C., a two-bedroom, two-bath apartment rents for . An outdoor pool, a rooftop dog park and access to high-end restaurants and retail — such as David Chang鈥檚 Momofuku, Dior and Hermes — are the main draw to the new development.
Bozzuto鈥檚 Kayce says the high-end luxury units at Cathedral Commons cater to a mature crowd of residents who want to live in the city and have access to urban conveniences, but at the same time feel removed from the everyday rush. (Both the Tenley Town Metro station and the Cleveland Park Metro station 鈥� the two closest to the development 鈥� are 1.1 miles from Cathedral Commons.)
鈥淵ou鈥檙e not in the hustle and bustle of D.C., but you鈥檝e still got all of the conveniences here,鈥� Kayce says.
鈥淚t鈥檚 very green. It鈥檚 in the city, it has the amenities 鈥� and great access up and down Wisconsin, beautiful views of the Cathedral, and yet, it鈥檚 not the middle of the city. It鈥檚 great access in a very secluded sort of area, which is what defines Cleveland Park and Cathedral Heights.鈥�
However, with prices ranging from $2,300 for a studio and up to $9,500 for a townhome, the question remains: Will the new development will be able to fill its units?
Eight months after The Woodley opened to residents, only 30 percent of the 212 units were filled, . Even the area鈥檚 Class A apartments are having trouble attracting and retaining residents lately, . The article says some building owners are 鈥渁ggressively discounting鈥� rent by 10 percent or more a month. Some are even offering one to two months of free rent to attract lessees.
But Kayce says some of the bigger (and more expensive) loft units and townhomes at Cathedral Commons have been the most in-demand units among new residents.
鈥淪ometimes when you鈥檝e got a mix that skews up toward that size and that price point, you get a little more nervous about those, but it鈥檚 been some of the most popular,鈥� he says.
The design for Cathedral Commons, which has a total of 145 units, draws on inspiration from boutique hotels, Kayce explains.
鈥淪everal years ago, we started to realize that the apartment world was starting to chase its own tail and look very similar, so we started spending a lot of time looking at the great boutique hotels of the world and museums and restaurants.鈥�
The walls hold art curated from local galleries, kitchen backsplashes are made of beveled subway tile from a local supplier and bathroom vanities are modeled after a high-end hotel in Napa. There鈥檚 even attention to detail in the hallway鈥檚 arches and in the walls by the elevator, which are covered in marble.
Courtyards and grilling areas offer green space. However, unlike many luxury apartments, there is no pool at Cathedral Commons.
The retail planned for the area includes a second D.C. location for the always-packed , as well as , and . Giant Food, CVS, Starbucks Suntrust and Wells Fargo make up some of the everyday retail.
If residents can afford a near $10,000 a month in rent, why aren鈥檛 they buying? Delta Associates鈥� Rich says in D.C., there will always be a market for those who want to rent 鈥� regardless of the price tag.
鈥淭here鈥檚 a significant amount of people in the District who rent by choice, whether it鈥檚 because of the career that they have 鈥� they鈥檙e in town for a couple of years and don鈥檛 want to purchase a home that they鈥檙e only going to live in for two years. There are people who live in the city during the week and then go back home to their ex-urban home for the weekend. And there are just people who don鈥檛 want to buy,鈥� he says.
Additionally, Rich explains that there is currently a tight supply of condos and houses on the market, especially in upper Northwest, which is where Cathedral Commons is located.
Rich says as the city continues to grow, residents can expect to see more high-end luxury rental buildings, as well as apartments at lower price points.
鈥淵ou鈥檙e going to see apartment buildings of different stripes. You鈥檒l see some luxury buildings 鈥� not just in the District, but outside of the District, perhaps in Bethesda or Tysons Corner or other parts of the Metro area,鈥� he says.
鈥淵ou鈥檒l also see small units being built to cater to the millennial generation who can鈥檛 afford $8,000 rents or $3,000 rents.鈥�
