ARLINGTON, VA—A source tells GlobeSt.com that Infinity Apartment Homes here has traded for approximately $43.5 million, or $191,630 per unit. The 227-unit, five story building located at 955 S Columbus St., was constructed in 1959 and last sold in November 2006 for $28.4 million.
The new owner, according to our source, is Alexandria, VA-based Capital Investment Advisors LLC, a private real estate management and development company that has made select acquisitions in the area, including last year's $10 million purchase of the Oak Knolls garden apartments in Fairfax, VA.
The seller is Carmel Partners and Walker & Dunlop provided financing for the transaction.
In general, Class B apartments in the DC area are grappling with an excess Class A pipeline that is impacting the Class B marketplace but to date have handled the pressure, according to a Delta Associates report. Over the past 12 months Class B rents are up 0.7% and vacancy increased only slightly to 4.4%, compared to 4% one year ago.
"Rents will likely trend negative for Class B assets during the balance of 2014 and through 2015 due to the over production of Class A assets and consequently continued increasing vacancy in B product," Delta predicted. It did note that several contributing factors will keep vacancy down; but rents will be under pressure through 2015.
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