HH Fund, a student housing-focused investor and operator based in Silver Spring, has purchased a 197-unit residential building in the George Washington University area.
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The private equity firm, which launched in 2015, acquired Varsity on K at 950 24th St. NW, it announced. The 1980s-era building has been operating as housing since the early 2000s, after it was converted from its original use as an extended-stay hotel.
HH Fund Managing Director of Acquisitions Lee Chen declined to reveal the price but said the sale closed midweek. As of Friday afternoon, it hadn’t been posted in D.C. deed records.
Chicago-based Heitman managed the asset on behalf of the prior owner and seller, the Los Angeles County Employees Retirement Association, Chen told Bisnow.
LACERA, which had purchased the property in 2017 for $112M, didn’t immediately respond to Bisnow’s request for comment.
HH Fund’s plan is to increase occupancy and complete system enhancements in the seven-figure range.
“There's still a lot of vacancy,” Chen said. “We have quite a bit of asset management capability and property management capability in the area. And with our platform, we have no issues turning this asset around from a lower-occupancy asset to a very high-occupancy asset and create value this way.”
With the acquisition, HH Fund now has more than 10,000 beds across 28 properties under management nationwide, valued at $1B.
SALES
Southern Management Cos. has purchased The Shelby, a 240-unit mid-rise apartment community in Alexandria, Virginia, it announced this week. The price wasn’t disclosed. Insight Property Group and its partners developed the property in Alexandria’s Penn Daw area, at 6200 N. Kings Highway, in 2014 and sold it to California-based Passco Cos. in 2016.
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Stewart Investment Partners sold a 47K SF medical office building in McLean, Virginia, for an undisclosed price, its broker, Transwestern Mid-Atlantic Capital Markets Group, announced this week. 1420 Beverly Road, which was renovated in 2022, is fully leased, with MedStar Health occupying 85% of the property. Transwestern’s Gerry Trainor, Jim Cardellicchio and Rowan Miller represented the seller.
FINANCING
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Zuckerman Gravely secured a $59.8M loan to refinance the debt on an 80K SF Potomac, Maryland, shopping center, Northmarq, which arranged the financing, announced this week. The permanent fixed-rate financing for Potomac Place Shopping Center at 10100 River Road is structured on a seven-year term. The property is anchored by Safeway, and other tenants include Walgreens, Starbucks, Chipotle, Vie de France Bakery & Café, Strosnider's Hardware, M&T Bank, PNC Bank, Maurizio’s, Duke’s Grocery and The Market at River Falls. The refinancing deal was led by Northmarq’s Jason Smith and Kenneth Gentzel.
MILESTONES
The Washington Commanders selected the contracting team to build the new 65,000-seat RFK football stadium. A joint venture between Clark Construction Group, Mortenson and Smoot Construction Co. is set to build the 1.8M SF stadium anchoring the 180-acre RFK campus, the team announced this week. Preliminary site work began in June, and construction is expected to begin in the spring of 2027, with delivery set for spring 2030.
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The new owners of the Hotel Harrington in downtown D.C. are priming the historic property for a renovation, the Washington Business Journal reported. KHP Capital Partners received a permit from D.C.’s Department of Buildings last month to begin interior demolition on the 242-room hotel, setting it up for a larger renovation. KHP Capital Partners last month paid $14.4M for the hotel at 436 11th St. NW.
