WASHINGTON, DC-Colorado REIT UDR and its joint venture partner, Kuwait Finance House, have closed a luxury apartment building here: 1301 Thomas Circle, NW, for $154 million. This follows another luxury multifamily play the two entities made earlier this year in Arlington, VA.
1301 Thomas Circle is a ten-story, 292-unit building in the Logan Circle neighborhood. It is located close to some of UDR’s other investments in the city--Andover House and View 14--as well as its development project at 2400 14th St.
Following the close of this transaction, the REIT will own, or have a stake in 21 multifamily projects in the DC area for a total of 5,934 units. Much of this was acquired via the joint venture with Kuwait Finance House, with which UDR first partnered in 2009. They have invested in a total of $281 million properties since then.
In general, UDR, headed by Tom Toomey, has been focusing on newer product in urban locations that are in higher income areas. UDR did not return a call to GlobeSt.com in time for publication.
The two companies are funding their latest acquisition via a five-year, 2.99%, $90 million interest-only loan from Fannie Mae, a 70% equity contribution by KFH of $44.8 million and a 30% equity contribution from UDR of $19.2 million.
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