WASHINGTON, DC-Atlas Real Estate Partners of New York City and the locally-based West End Capital Group quietly struck an agreement at the end of last year to target investment opportunities in the multifamily, office and retail asset classes throughout the Mid-Atlantic. The partnership has already acquired three properties and has several more on its radar, Arvind Chary, managing principal at Atlas, tells GlobeSt.com.
The companies are seeking out value add opportunities in particular, especially assets that are in supply-constrained locations such as urban in-fill, Chary says. “We hope to do between $100 million to $150 million in acquisitions in 2014,” he says.
So far the partnership has acquired three properties for a total of $45 million and has a fourth deal under contract, Chary says. There are several additional deals in the pipeline.
The first acquisition-1663 Prince St., a 16,000-square foot office building in Old Town Alexandria-closed in November 2013.
The property is 100% occupied by Washington Speakers Bureau, a wholly owned subsidiary of Publicis Omnicom. The acquisition was financed with a 10-year fixed-rate loan through Monument Bank.
Then, in December the Atlas/West End JV acquired Fort Davis Center, a 44,147-square foot, fully-leased office/retail center located in the District. The building recently underwent a renovation and is anchored by the Washington DC Department of Human Services, which occupies 59% of the property and recently extended its lease for an additional 10 years. The acquisition was financed with a 10-year fixed-rate CMBS loan originated by Deutsche Bank.
In January of this year, Atlas/West End closed on Silver Hill Apartments, a 216-unit garden-style apartment community in Suitland, MD. The partners are planning a substantial renovation for this asset. The acquisition was financed with a bridge loan through Los Angeles-based Latitude Management Real Estate.