Amid a challenging economic environment, Bozzuto has acquired a 132-unit boutique multifamily community in Arlington, Virginia. The community was acquired from Gables Residential through Bozzuto’s discretionary Multifamily Fund that was raised in 2022.
Berkadia served as the broker for the deal and secured $27.3 million in acquisition financing through Freddie Mac. The transaction also signifies a wider effort by Bozzuto, which is headquartered in Greenbelt, Maryland, to acquire high-quality assets on the East Coast.
“Given the current economic landscape with ongoing challenges and rising costs to build new, we see this as an opportune time to set our sights on acquiring communities that are aligned with our brand, where we can expand on our mission to create sanctuary for our residents. Simply put, the yields on new development deals are currently not favorable,” said president and CEO Toby Bozzuto.
The property, Gables 12 Twenty-One, has been renamed The Alcott. It’s within walking distance to the Rosslyn-Ballston Corridor and located near metro access to Amazon’s HQ2 and the Virginia Tech Innovation campus. Bozzuto Management Co. will serve as the property manager.
Brad Coker, Bozzuto senior vice president of acquisitions, asset management, and private equity, added that part of the goal for the fund was to find a value-add property built after 2000. “The property was developed and managed by Gables Residential, a firm we respect highly, and is in great condition under their stewardship.”
Bozzuto plans to renovate The Alcott, which is 96% occupied. Improvements will include updated amenity spaces and furniture, fresh paint and upgraded fixtures, as well as new programming for residents.
“As stewards of our investors’ capital—and our own—we see incredible opportunity in purchasing an existing asset that we are then able to further enhance through renovations and updates, as well as elevated resident programming,” Bozzuto added.
