Swedish Investor Akelius Buys Capitol Hill Apartments For $34M

Two Capitol Hill apartment communities have sold to Swedish investment firm Akelius Residential for $34M.

Akelius bought the 120-unit Capitol East Apartments and the 48-unit Lexington Apartments from Pennsylvania-based Wexford Management.

The adjacent properties, at 518 Ninth St. NE and 816 E St. NE, sit just three blocks south of the bustling H Street NE.

Greysteel CEO Ari Firoozabadi, Managing Director W. Kyle Tangney, Director Rawles Wilcox and Investment Associate Herbert Schwat brokered the deal. Tangney said the properties present a value-add opportunity for Akelius.

“Newly built and renovated properties are achieving substantially higher rents, which presented new ownership both immediate and long-term revenue growth potential," Tangney said in a release. "We were able to achieve tremendous pricing and options for our client by highlighting the facts that the properties were irreplaceable since they are located in a low density residential zone on the Hill where development is restricted."

The Swedish investment firm, which has an office at 1050 Connecticut Ave. NW, broke into the D.C. market with two multifamily acquisitions in April 2016. It acquired an 88-unit Columbia Heights apartment building for $16.5M and a Mount Pleasant property for $8.5M.

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