Federal Capital Partners has acquired another apartment building this month -- this time in Rockville. For this transaction it teamed up once more with its New York-based partner Angelo, Gordon to buy the Monterey, a 432-unit high-rise that is a failed condo conversion. A 16-story complex built in 1967 and then renovated in 2000, the property is currently 45% occupied. The rest of the units are in various stages of renovation, putting the Monterey firmly in FCP's sweet spot - that is, a value-add play. FCP plans to invest $17million to finish renovation and reposition the property.
Kudos also to Transwestern Asset Investment Sales Group in Bethesda, which helped its client - a group that invests on behalf of third parties - acquire a 172,000 SF office/industrial/flex portfolio of seven buildings in Lexington Park, MD. Unless you are in the military you can be excused if you haven't heard of Lexington Park. It is located about one mile from the Patuxent River Naval Air Station - which is a testing facility for fighter jets and training facility for fighter pilots - and just about all of the tenants there service the base. The seller is the former Triple Net Properties, now Grubb & Ellis Realty Investors. Andy Stape, Joe Friedman, Will Wheeler and Mat Adler of Transwestern's ASSET Investment Sales Group brokered the sale.
MacNeil/Lehrer is renewing 18,305 SF of space at 2700 South Quincy Street in Shirlington. Marty Almquist of Cassidy & Pinkard Colliers repped MacNeil/Lehrer Productions in the deal.
The Fed's steady trimming of interest rates have had at least one happy result -- for the right client and property it has become a great time to rework your financial structure. Guidelines vary depending on sponsor, market and property but the less debt encumbering a property the better. One DC area property recently refinanced was Petco Plaza, a 22,850 SF mall across the street from Tysons Corner. Howard Taft, managing director and Charles Penan of Cohen Financial's Miami office secured $7.6 million from Prudential Insurance. Terms of the 12-year non-recourse loan include 50% LTV, a 12-year amortization schedule and an interest rate below five and a quarter. The borrower is a local real estate entrepreneurial group.
StonebridgeCarras and Walton Street Capital are moving quickly now that they have secured the 521,000 SF, 15-year DoJ lease for Constitution Square. The duo will be breaking ground on Tuesday, April1 at 10:30 am, at 2nd and N Streets.
Akridge's VP of Property Management, Mary Lynch, is the new president of the Apartment and Office Building Association for this year - making her the fourth Akridge executive to hold the position. In fact, according to Akridge lore the first AOBA president was company executive Mary Arthur, named to the spot in 1974, which was the same
year Akridge began operating. Kathy Barnes and Gail Seekins are the two other Akridge executives that have been at the helm of AOBA over the years.
A local arm of BOMA, AOBA's DC office is somewhat unique, Lynch tells Bisnow, in that it includes apartment owners on the membership rolls.
Under Lynch, the organization will continue to lobby Congress on various issues important to the real estate community. She also expects to ramp up several green initiatives during her term. "We will be putting together a resource book for property managers and holding a green conference in September," she says.
As president, she will also be working to increase awareness of the organization's membership benefits. For instance, AOBA offers "tremendous purchasing power for utilities through the AOBA Alliance," through negotiated contracts with local electricity and gas providers, Lynch says. As illustration, she points to savings in one Akridge managed property a few years ago: "We saved $100,000 in utilities solely because of the Alliance."