Washington Business Journal

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Last month, Equity Residential closed on a high-riseapartment building in this submarket, paying $85 million toacquire the property from Sunburst Hospitality. In October 2009, itacquiredMetropolitan at Pentagon Row, a 326-unit luxury apartmenthigh-rise that traded for $100 million. According to the Equityspokesman, the DCarea "is a core market for us. We arealwayslooking for the opportunity to add high-quality assets."

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The property is a "wonderful asset," says Greg Leisch, presidentandCEO of Delta Associates, which helped underwrite offers for afewpotential buyers. "I would guess it was chased by about 30 ormorepurchasers. It was quite a beauty contest."

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The DC apartment market has recovered faster than DeltaAssociatesanticipated it would last year, Leisch adds. Accordingtosoon-to-be-released statistics for the market, the DC area'svacancyrates have, for the most part, remained unchanged over thepast year. "It is the only asset class we could say that about," hecontinues. It also experienced recordabsorption, with 10,000 unitsabsorbed over a 12-month period. "The Dumont's new owner will beleasing into a rapidly-recoveringapartment market," Leischconcludes.

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