Crossbeam Makes First NoVA Buy

RESTON, VA-Crossbeam Capital of Bethesda, MD has made its first multifamily acquisition in the Northern Virginia market with its purchase of the 200-unit Reston Glen Apartments, the firm tells GlobeSt.com. It has acquired the 10-acre garden community from Redstone Partners of New York, which, in turn, had acquired it in a distressed play from Fairfield Residential. The purchase price is undisclosed, but Reggie Samuel, Crossbeam’s director of acquisitions, tells GlobeSt.com that he expects the property to deliver a cap rate in the mid-6% range in its first year. 

“This is a turnaround story--Fairfield made about $3.5 million in upgrades to the property,” Samuel says. “When they returned the property to the lender, Redstone acquired it but they didn’t have the management in place to develop any traction. Essentially, we are acquiring a rehab opportunity that has already been rehabbed.” The property is 99% occupied and will benefit from a forthcoming Metro station here, he adds. 

Crossbeam made the acquisition through its Workforce Housing Fund I. Maury Zanoff and Matt Williams of CB Richard Ellis Capital Markets’ Washington, DC office arranged the permanent financing through Freddie Mac. Andy Boyer and Jonathan Greenberg of CBRE represented Redstone in marketing Reston Glen.

Reston Glen was the fifth deal that Crossbeam and its affiliated partner, Houston-based Concierge Asset Management, closed in December alone. And it was the eighth multifamily property acquired by Crossbeam/Concierge in 2010. Other deals included acquisitions in Evanston, IL and in Texas’ San Antonio, North Austin and North Dallas. The company is negotiating other apartment buildings in the Reston submarket, Brad Blash, chief acquisitions officer of Crossbeam, tells GlobeSt.com. “We are in discussions for deals worth in excess of $50 million that we expect to close by the end of the first quarter.”