WASHINGTON, DC-Federal Capital Partners hassold a 297-unit apartment building it acquired outof foreclosure in 2009 in DC’s Columbia Heightsneighborhood. Allegro Apartments, a luxurybuilding, was sold to an institutional buyer for an undisclosedprice.

The building had just been completed when FCP bought it, FCPManaging Partner Alex Marshall tells GlobeSt.com.By late 2010 it had the property stabilized and then was able torecapitalize it in July 2011. The $80.5-million,five-year refi was provided by the New York office ofAareal Capital Corp.

From there, Marshall says, “we seasoned the rent roll for oneyear and then put it on the market.” All in all, it was a typicalvalue-add deal. More than likely, though, such opportunities, atleast in the District, will be few and far between for the rest ofthis particular cycle. Investors seeking the higher yieldsassociated with value-add will likely have to look to developmentprojects instead of acquisition, Marshall says. “However, there areplenty of solid, core opportunities still.”