Investor Makes D.C. Debut With All-Cash NoMa Buy: The D.C. Deal Sheet

A year after its founding, Turio Residential Co. has made its first D.C.-area acquisition.

Philadelphia-based Turio Residential Co. paid $16M in cash for the 67-unit building at 1324 North Capitol St. NW in NoMa. The property had been operating as an extended-stay hotel since it delivered in 2023, but its new owner plans to lease it up as an apartment building.

“We do see that as an opportunity in the marketplace right now, as a lot of the short-term-stay operators have gone out of business, whether the master-lease model doesn't work anymore and the revenue-sharing model is much harder to finance from a debt perspective,” Turio founder and Managing Partner Gianne Parente told Bisnow.

“We think there's a really good opportunity to be buying properties that have had these leases in place and to lease them up as traditional multifamily in a market with decreasing supply,” he said.

Parente is planning on renaming the property NoMa 1324. He said he expects an 18-month lease-up. 

The seller was a limited liability company managed by D.C.-based MMg Development's Julio Murillo and Donald Malnati, according to D.C. deed records. 

In September, the property had been scheduled for a foreclosure auction by its lender, Sandy Spring Bank, but a sale never took place. At the time, MMg owed $20.4M on the note, according to deed records.

Murillo and Malnati didn't respond to Bisnow’s request for comment. 

The property, Turio’s first D.C. acquisition, is also its second-ever purchase. Its first was another extended-stay-to-residential play in Philadelphia last summer, a 95-unit property that it bought for $24.5M.

Parente said the firm has partnered with institutional joint venture partners for its capital and is looking for more acquisitions with a focus on the mid-Atlantic and Midwest. 

“Washington specifically provides a really good value right now compared to some secondary markets, where we think the cap rates and the valuations are actually very similar to smaller markets with worse supply-demand dynamics,” Parente said.

Parente was formerly managing director of investments and operations at Radnor, Pennsylvania-based EQT Real Estate. 

Horvath & Tremblay Senior Vice President Dennis Cravedi represented Turio in the acquisition of 1324 North Capitol St. NW.

MILESTONES

American Real Estate Partners held an opening celebration Thursday for its office-to-residential conversion on King Street in Old Town Alexandria. CityHouse Old Town is a 199-unit conversion of a 1980s-era, 236K SF office building at 1101 King St. Residents started moving into the property, which is 40% leased, late last year. On the ground floor are retailers Fresh Baguette and Orangetheory Fitness. DCanter Wine Boutique received a certificate of occupancy last week. Harrison Street is the project’s capital partner.

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Foulger Pratt, Howard Hughes Communities and Silverstein Properties have broken ground on a 390-unit apartment building in Alexandria’s WestEnd, they announced this week. Aspect is the first residential building to get underway at the 52-acre redevelopment of the former Landmark Mall, which has to date been spearheaded by Inova. The team has also secured financing this week for the $180M project, the Washington Business Journal reported. A syndicate of banks led by Truist provided a loan to cover 55% of the project's cost, and the rest is coming from the development partners, the WBJ reported.

LEASES

Federal Realty Investment Trust has landed a gym and coffee/wine bar at Twinbrooke Centre in Fairfax. Trummer’s Coffee and Wine Bar is taking 2,500 SF and Pump24 is taking 9K SF at the 103K SF shopping center at 9525 Braddock Road, the REIT announced. Federal Realty has refreshed the center's architecture, lighting, landscaping, accessibility and common areas and delivered new gathering spaces. It is anchored by a 35K SF Safeway and has welcomed Tony’s N.Y. Pizza, Noosh, Kokee Tea and Kids United. It includes more than 20 businesses with local ties, according to Federal Realty.  

SALES

Federal Realty acquired the 176K SF Congressional North Shopping Center in Rockville. The North Bethesda-based REIT paid $72.3M for the Aldi-anchored asset, it announced. The 13-acre property also houses an RH Outlet, Petco and Staples. The seller was Cohen Siegel Investors, Commercial Observer reported. Congressional North sits next to Federal Realty’s 309K SF Congressional Plaza, which includes a Barnes & Noble, J. Crew Factory, Ulta Beauty and Athleta.

CORRECTION, MARCH 20, 5:15 P.M. ET: A previous version of this story mischaracterized the tenants at Twinbrooke Centre. It has been corrected.