NORTH BETHESDA, MD-The $117-million sale of the Pavilion Apartments has closed, three months after the property came under contract. Triton Pavilion LLC acquired the 432-unit rental complex from Home Properties, which bought Pavilion six years ago for $25.3 million.
With renovations, Home Properties spent an aggregate $53.8 million on the purchase. The new owner plans to make changes of its own and will spend about $34 million to convert Pavilion to a condominium development with 4,500 sf retail space. The transformation process will conclude with the changing of the residential high-rise's name to Monterey.
As dictated by law, existing tenants have been given the opportunity to purchase their units. "We will fully comply with all county, state and federal laws regarding conversion of the property to condominiums," says Doug Lashley, Triton senior director of operations. "In fact, Triton has already held a number of meetings with local officials and community groups to discuss plans for the conversion. We've also developed a transition plan to assist tenants wishing to locate new rental units in the area." The initial stable of renovated for-sale residences will hit the market in the middle of next year.
Pavilion was developed in 1967 at 5901 Montrose Rd. near the National Institutes of Health and Bethesda Naval Hospital in Montgomery County's N. Bethesda/Rockville community. According to county records, the building and the 3.3 acres it occupies have a current assessed value of $43 million.
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