per unit in monthly rents.
WASHINGTON, DC-Federal Capital Partners has sold a 297-unit apartment building it acquired out of foreclosure in 2009 in DC’s Columbia Heights neighborhood. Allegro Apartments, a luxury building, was sold to an institutional buyer for an undisclosed price.
The building had just been completed when FCP bought it, FCP Managing Partner Alex Marshall tells GlobeSt.com. By late 2010 it had the property stabilized and then was able to recapitalize it in July 2011. The $80.5-million, five-year refi was provided by the New York office of Aareal Capital Corp.
From there, Marshall says, “we seasoned the rent roll for one year and then put it on the market.” All in all, it was a typical value-add deal. More than likely, though, such opportunities, at least in the District, will be few and far between for the rest of this particular cycle. Investors seeking the higher yields associated with value-add will likely have to look to development projects instead of acquisition, Marshall says. “However, there are plenty of solid, core opportunities still.”