ALEXANDRIA, VA-Washington Real Estate Investment Trust and Trammell Crow Co. are partnering to build a high-rise apartment building here in Old Town. The total cost of the project pencils in at $95 million, with WRIT projecting a stabilized return on cost of between 7% and 8%.
WRIT is kicking in 95% of the required equity for the building, which at 15 stories will house 270 units. Trammell Crow, as the sponsor and developer, will contribute 5% of the required equity. WRIT was unable to return a call to GlobeSt.com in time for publication.
The building will be located on a one-acre parcel that the two companies recently purchased on northwest quadrant of the intersection of First and Fayette Streets--a location that is within walking distance of the Braddock Road Metro Station. Construction is expected to begin in the fourth quarter of 2012 and deliver approximately 24 months later. Stabilization is estimated by first quarter of 2016.
One reason WRIT likes the area is the Braddock Metro Neighborhood Plan. President and CEO George F. “Skip” McKenzie said in a prepared statement that its several blocks of new apartment, townhouse, condominium, office and retail development underway are bring renewed focus to the area.
“Our project will be marketed to young professionals wishing to reside in a mixed-use, transit oriented environment with a strong amenity base,” he says. WRIT also has its local pipeline a 160-unit 650 North Glebe development in Ballston. The two projects, he says, allow the REIT “to take advantage of the high demand and low vacancy forecasted over the next several years.”
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