International real estate business Pembroke acquired Fitzroy in Arlington, Virginia, its first U.S. residential property. With 267 units, the nine-story building features lifestyle amenities from a roof deck with a pool to co-working pods.
"With office properties in central D.C. that are home base for thriving businesses, we're looking to leverage our learnings: People want to work and live in thoughtfully designed spaces that provide a wide range of amenities and conveniences," says Max Timmons, director at Pembroke in Washington, D.C.
"There's great demand for residential properties like Fitzroy that offer residents an easy commute, sustainable attributes, and robust amenities to live life well. We're delighted to add this high-quality multifamily asset to our collection of renowned properties in the world's leading cities."
The $158.3 million transaction was facilitated by Berkadia, which completed the sale on behalf of the seller, Texas-based Trammell Crow Residential. Within the Clarendon neighborhood, the LEED Gold certified building, which won a 2024 MFE Award, opened in October 2023 and is currently 96% occupied.
“We are proud to work with the development team on this tremendous asset,” says Berkadia senior managing director Brian Crivella. “The best-in-class asset performed extremely well during lease-up. Investors are seeking the growth and stability of Clarendon and the greater Northern Virginia location. The supply pipeline is nearly fully leased, and demand fundamentals are as strong as they have been in many years.”
The Fitzroy acquisition is part of a strategy to diversify Pembroke’s real estate portfolio globally in the cities where the firm also has mixed-use and office properties such as Boston, London, Munich, Melbourne, Seattle, Sydney, and Tokyo.
"Supply is not keeping up with demand for high-quality residential properties in coveted neighborhoods in the world's most sophisticated cities. Targeting investment in multifamily and build-to-rent properties in the cities where our mixed-use and office buildings are located allows Pembroke to leverage this opportunity and our team's local expertise," says Jack Clark, senior vice president and head of investments at Pembroke.
"A differentiator for us is that we're uniquely positioned to move quickly with acquisitions like Fitzroy, because we're able to close deals all cash and finance opportunistically later," Clark adds. "2025 will be a transformative year for Pembroke as we continue to look for the right residential properties in the right places to add to our global portfolio."
Fitzroy offers studio, one-, and two-bedroom floor plans with kitchen islands, stainless-steel appliances, quartz countertops, and spa-inspired bathrooms, plus a community fitness center and a courtyard.