LEESBURG, VA-Federal Capital Partners and joint venture partner Kettler have acquired a workforce housing community here for an undisclosed price. The property, called Fields of Leesburg, is a 404-unit garden apartment community located at 75 Plaza St. The property participates in a tax credit program that provides affordable housing to occupants that qualify. Kettler Management will manage the property.
The deal is FCP's first investment in Loudoun County, and its second transaction with Kettler--the first being in Tidewater Virginia. The acquisition also provides FCP with more exposure to the workforce housing sector, an area in which it has been seeking investments, according to FCP Managing Partner Alex Marshall. "We will continue to look at ways to expand our presence in markets with similar dynamics to Loudoun County," Marshall says in a prepared statement.
Workforce housing has become an active subcategory in the multifamily space in the DC area. With competition fierce for class A assets, interest in affordable and workforce housing as an investment has grown. In Laurel, MD, a renovated 218-unit apartment complex recently traded for $27.9 million, or $128,178 per unit. Another example is EOS 21 in Alexandria, VA. AREA Property Partners acquired the 20-building, 1,180-unit property for $192 million, or $162,712 per unit.
Other new areas in which FCP is expanding include self-storage—it recently partnered with Self Storage Zone to acquire 645 Taylor Street, NE, in the District, from the Capital Area Food Bank. Earlier this year, FCP entered the manufactured homes space, buying a stake in a 1,358-pad manufactured home portfolio located in North Carolina, Maryland and Pennsylvania.
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