WASHINGTON, DC—Locally-based Urban InvestmentPartners and Infinity Real Estate of NewYork City have partnered to acquire a 114-unit apartment buildingin DC’s popular Adams Morgan neighborhood. The companies closed on1841 Columbia Rd., NW, for $26 million. The sellerof the property, formerly known as The Alcazar,was Fairfield Residential Co. New York City-basedArbor Commercial Mortgage provided the acquisitionand debt funding for the sale.

The building, familiar to residents for its pre-wararchitecture, also has a sizable retail component of some 20,000square feet. Retailers are a mix of what Adams Morgan is famous forin DC—that is, restaurant and drinking establishments, in this casethe Napoleon Bistro and BedrockBilliards—as well as service retail for the neighborhood’sinhabitants. Retailers in this category include Gary TaylorFraming, Bank of America, World Cleaners, andFleet Feet, which specializes in sports gear.

The new owners plan to invest more than $7 million on thebuilding’s renovation and modernization, including a rooftopterrace that is expected to be one of the largest in the District.Other upgrades are a window and retail storefront replacement, anenvironmentally friendly water-sourced heating and cooling systemand redesigned common areas. UIP GeneralContracting, a subsidiary of UIP, is performing therenovation and another subsidiary, UIP PropertyManagement, will assume the property management of thebuilding when it delivers, in December 2012. UIP said it will notraise rents except for the standard annual CPI-based increase.