(Mark Your Calendars: RealShare Apartments 2011, October 20 in Los Angeles).
WASHINGTON, DC-One of Washington, DC’s more visible multifamily properties, The Rittenhouse, has traded for a little over $30 million. The 204-unit luxury apartment building, located on 16th Street across from the Rock Creek Park and Golf Course, traded to Henderson Global Investors, which was advised by its local management partner, the ROSS Cos. Schwartz Management Co. was the seller.
“This was Henderson Global’s first purchase in the District,” Ari Firoozabadi of the Firoozabadi Group of Marcus & Millichap Real Estate Investment tells GlobeSt.com. The sale price of $30.75 million, he adds, translates into approximately $150,000 per unit, “which is well below replacement.” Firoozabadi, along with colleagues John Mullen and Kyle Tangney, represented the seller.
One of the reasons Henderson won the sought-after property was because it was best able to navigate DC’s statutory restrictions of the Tenant Opportunity to Purchase Act and its rent control laws–and then apply those to its own underwriting, Firoozabadi says. “This is a tremendous opportunity for the Henderson/Ross team,” he says.
The Rittenhouse was built by developer M. Pollin & Sons in 1957, the family business of the late owner of the Washington Wizards, Abe Pollin–who at one time lived in the penthouse suite. The property traded hands, from local real estate agent Oliver Cowan, to Sawyer Realty Holdings, and then to Peter N.G. Schwartz Management. When it went on the market again, Firoozabadi says, local, national and international investors competed for the asset.