1351 H St NE
Washington, DC 20002
Maketto · Retail Property For Sale

Marcus & Millichap is pleased to present the exclusive offering of 1351 H Street NE. This incredibly unique investment opportunity is comprised of two buildings connected by a customer-friendly courtyard and is leased to an extremely popular restaurant/retail concept created by one the Washington, D.C’s top chefs. 1351 H Street NE was completely renovated at great expense and leased in 2014. The tenant, Maketto, is a Cambodian/Taiwanese inspired creation of top Washington, D.C. chef Erik Bruner-Yang and his restaurant group, Foreign National. Among his many accolades, Mr. Bruner-Yang was nominated for the James Beard Foundation’s “Rising Star Chef” award in 2015 and was a semifinalist for “Best Chef, Mid-Atlantic” in 2016 as well. Since its opening, Maketto has received national recognition and has been counted among Washington, D.C.’s best restaurants. Along with Maketto, other concepts under the Foreign National umbrella include Toki Underground (1234 H Street NE), and both Brothers & Sisters and Spoken English which can be found inside Adams Morgan’s high-end Line Hotel. Maketto is currently in year six of a 15-year lease followed two five-year option periods. The initial term of the lease expires December 31, 2028. The lease itself provides two components rarely seen in this market. First, because both buildings were completely renovated, the tenant agreed to a true NNN lease which means the tenant is responsible for roof and structure leaving the landlord with no financial obligations for the operation or maintenance of the property. Second, in addition to the very reasonable base rent of $29.76 per square foot of gross leasable area, the tenant also pays percentage rent, with no breakpoint, equal to four percent of all gross sales. Without the breakpoint, an investor is able to capture four cents of every dollar generated by Maketto from day one of ownership. Based on last year’s gross sales figures and current year-to-date performance, one could reasonably assume percentage rent for 2019 in excess of $120,000. The combination of a completely renovated property situated in a popular restaurant/nightlife destination and a critically acclaimed restaurant concept created by one of Washington, D.C.’s premier culinary artists results in a uniquely rare investment opportunity which also yields an above-market return. The subject property itself offers a total of 6,056 square feet of gross leasable area on a 3,544-square foot lot. The front building is two stories with a full sublevel. The first level includes a retail shop and a café/bar while the second level provides additional seating as well as another bar area. The sublevel is comprised of customer restrooms and mostly back-of-house functions such as a business office, dry storage/stockrooms, and a walk-in cooler. The rear building houses the kitchen along with specialized seating for those customers who desire a more intimate connection to their fine-dining experience. The roof deck above the kitchen has been enclosed to create an exceptional lounge area that ties directly back to the Cambodian/Taiwanese inspiration for the restaurant concept. Connecting these two beautifully renovated buildings is an outdoor courtyard where patrons can take advantage of the family-style seating or enjoy food and drink while making new friends as the crowd spills out from the main dining area into the courtyard for a breath of fresh air.