ARLINGTON, VA-Invesco Real Estate US of Dallas has acquired Metropolitan at Pentagon City, a luxury high-rise apartment community at 901 S. 15th St. in Arlington, VA, from Cornerstone Real Estate Advisers and Kettler. According to public records, the 325-unit building traded for about $125 million.
The CB Richard Ellis Washington DC Multi-Housing Investment Properties team of Bill Roohan, Mike Muldowney, Andy Boyer, Morgan Campbell, Jonathan Greenberg, Michael Rudolph, John Sheridan and Brian Margerum represented the seller--the group’s fourth multifamily sale in the past two weeks.
There was a tremendous amount of interest in the property, Roohan tells GlobeSt.com, including pension funds and REITs vying for the asset. “That submarket is expected to post huge rent growth, of 4% to 7%, over the next five years,” he says.
Besides the high demand for properties in this part of Northern Virginia, the deal also illustrates how quickly valuations for multifamily projects are growing. Last October, the sister building--Metropolitan at Pentagon Row, a 326-unit luxury apartment high-rise--traded for $100 million. Equity Residential purchased the building for cash from a Kettler joint venture.
Metropolitan at Pentagon Row is located one block from the Pentagon City Metro Station, two blocks from I-395 and three blocks from US Route 1. It offers studio and one- and two-bedroom units averaging 870 square feet.
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