Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

RESTON, VA—Ross Development and Investment, a Bethesda, MD-based firm, has acquired a class B 258-unit garden apartment community in Reston, Va. for $40 million, or $155,039 per unit, from Virginia-based Comstock Home Building Companies Inc. Carter Lake Apartments is located on Becontree Lake Drive off North Shore Drive. The seven building complex also has a pool, clubhouse, fitness center and tennis courts.

Comstock originally acquired the property in early 2005 from RREEF with the intention of converting it into a condo property, Coldwell Banker Commercial Ideal Realty Group team leader Dean Sigmon tells GlobeSt.com. Sigmon says Coldwell approached the company early this fall with the buyer’s proposal. Comstock had already started the conversion process, renovating six units. It had collected deposits from some tenants, but hadn’t ratified the contracts. When the decision was made to sell the asset to Ross Development, those deposits were returned. The deal concluded within 45 days. Ross’s equity partner in the transaction is Rockville Capital, based in New York, Sigmon says.

Ross Development plans to reposition the property to class B plus or A minus, he says. “This is what I would call a class value-add play. The building fundamentals are great. It is the common areas, hallways, interiors in some apartments that need upgrading.” He says that Ross Development is likely to invest $5 million in the enhancements.

The company hopes to raise rent to $1.75 per sf from its current $1.40 per sf. Rents in Reston, a high tech enclave in Northern Virginia, can exceed $2 per sf with renovated product, Sigmon says.

Surprisingly, given the cooling condo conversion market, Sigmon found only one other comparable project while working this deal. Earlier this Fall, he says, Chicago-based Equity Residential acquired a property in Alexandria, Va., from Monument Realty that had originally been slated for condo conversion.

Sigmon says Coldwell is working on a second conversion reversion transaction in Pikesville, MD. “We have two others in the pipeline as well.”

Coldwell Banker Commercial Ideal Realty Group represented both parties in the transaction.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


GlobeSt. Multifamily Spring 2022 (Formerly APTS)Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.