Washington Real Estate Investment Trust has closed on an apartment community in Alexandria, Va., consisting of 1,222 units, and developable land for an additional 550 units, for $244.8 million, the company announced May 20.
Riverside Apartments was purchased from AIMCO and is comprised of three 15-story concrete buildings on approximately 28 acres. The community is currently 98% leased and features a clubhouse with a leasing center and management office, a two-story fitness center, large exercise studio, social room, outdoor pool with lap pool, and an outdoor theater.
Paul T. McDermott, president and chief executive officer of Washington REIT, says the acquisition demonstrates the company’s “disciplined capital allocation through the purchase of value-add, urban-infill multifamily assets with strong income growth potential at a significant discount to replacement cost."
New employers, Washington REIT says, such as The National Science Foundation and MGM National Harbor are expected to create rapid job growth within three miles of the property over the next 18 months.
Now that Washington REIT has closed on the property, McDermott says there are plans to renovate about two-thirds of its units. “Our research identified Riverside Apartments to be well-located in a submarket with strong employment drivers and limited supply,” he says. “The asset provides us with a compelling opportunity to renovate approximately 850 units to generate rental growth, and the potential opportunity to develop additional units onsite, thereby offering multiple price points in a submarket with a strong population of renters."
Washington REIT owns a portfolio of 55 properties totaling approximately 7 million square feet of commercial space and 4,480 residential units, and land held for development in the greater Washington metro region. The 55 properties consist of 25 office properties, 16 retail centers, and 14 multifamily properties.