ARLINGTON, VA-The Avery, a 67-unit apartment building here has traded for $33 million—hardly an unusual transaction for the Washington DC area except for this: the new owners intend to convert them to condos.
Silverwood Cos. of Reston, VA, and its investment partner, Freedom Development of Alexandria, VA, acquired the property, located at 1200 North Rolfe St. The companies are now getting approval to convert the building to condos, which they expect to finalize within two weeks. "We will be taking contracts in about month," Mark Silverwood of Silverwood Associates, tells GlobeSt.com.
As for why condos, why now, Silverwood says the timing--and the size of this asset--is right. "Our company built condos in the past so we are sensitive to the for-sale market. We have been watching the availability of new product in DC drop dramatically in recent years to the point where there is hardly any new product being delivered."
The size of this apartment building, at 67 units, is ideal, Silverwood continues. "That is the perfect number. You can get in and out with little difficulty. Banks are comfortable with units under 100 because anything more means they have more equity tied up and the sales process will take longer."
Asking rates for the units will range from $450,000 to $900,000, he said.
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