ALEXANDRIA, VA-AREA Property Partners has acquired a 244-unit mid-rise and garden apartment community here in Old Town Alexandria, for $40.85 million. Priderock Capital Partners was the seller. Jones Lang LaSalle’s Al Cissel, Scott Melnick and Christine Espenshade represented Priderock.
With a 99% occupancy rate, “the cap rate for the sale was roughly 5.75,” Cissel tells GlobeSt.com. “The property has done very well. It is a great location in Old Town and the property is in good shape.”
Priderock has invested $1.5 million of renovations in Heritage at Old Town over the past 18 months. The six-building garden and one-building mid-rise complex was built in 1978.
Priderock acquired the property in the third quarter of 2009 for $26.6 million, or $109,000 per unit, from AIMCO, Ari Firoozabadi of Marcus & Millichap notes. “Its consequent sale in two years to AREA for $40.85 million, or $167,000 per unit, demonstrates that institutions must bet long on this market even in the darkest of times,” he tells GlobeSt.com.
Also, the fact that AREA was able to purchase an asset captured a double digit profit in just two years suggests that institutional confidence for DC region multifamily investment fundamentals has returned to pre-recession levels, he adds.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
