ALEXANDRIA, VA—GlobeSt.com has heard that the JV between Federal Capital Partners and Ross Cos. has sold one of the apartment buildings in a portfolio that was recapitalized last year. A call to FCP placed after hours was not returned in time for deadline. We will update the story accordingly.
According to the source, the two-building, 394-unit is selling for $66 million, or $167,513 per unit and at a 6% cap rate next year. The buyer is an LP and its backer or backers were not disclosed. The Strand is located at 200 Yoakum Pkwy. HFF brokered the transaction.
The Strand was one of six properties that FCP recapitalized last year. Ross Cos. retained an interest in the 2,044-unit portfolio and continued to provide property management services.
The recapitalization valued the portfolio in excess of $240 million. Per FCP's usual MO, the property, which included the high-rise apartment Strand and five garden style apartment communities in Maryland, was a value-add play.
The Strand, for example, was undergoing redevelopment at the time of its purchase.
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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.
