JBG Smith Sells Reston Apartments To Swedish Investor For $93M
The investor closed Monday on the $93M acquisition of the Fairway Apartments in Reston from JBG Smith, Bisnow has learned. The 346-unit, garden-style apartment community sits at the intersection of North Shore Drive and Wainwright Drive, less than a mile from Reston Town Center.
CBRE brokered the sale on behalf of JBG Smith. The REIT has been focusing much of its efforts on Amazon HQ2 and the surrounding National Landing area, but it also has the RTC West mixed-use project in Reston.
The Fairway Apartments are around 97% occupied, Akelius Vice President Matt Serenius said, adding that its rents have remained stable during the coronavirus pandemic. He said Akelius plans to make minor upgrades to the property, including adding new washers and dryers and renovating some kitchens and bathrooms.
"Rents here are heavily discounted to the new high-rise construction at Reston Town Center, and we think it offers a great value for people who want to live close to the town center but not pay the higher rents," Serenius said.
Akelius in January acquired a Hyattsville apartment building for $103M. In September, it acquired an apartment building in D.C.'s Brightwood neighborhood for $40M. It also made a $170M Ballston acquisition in 2018, a $34M Capitol Hill acquisition in 2017 and a $16.5M Columbia Heights acquisition in 2016. And it broke ground in August on an office redevelopment near Thomas Circle.
Serenius said it made the Reston and Hyattsville acquisitions to diversify its D.C.-area portfolio with more suburban assets. He said it was drawn to Reston in particular because of the growth of large companies such as Google, Microsoft and Volkswagen.
"We think it will strengthen our portfolio moving forward having core locations but also suburban locations close to major job and employment centers," he said. "We're bullish on Reston. For all of the suburban locations, it's one of the best submarkets."