Washington Property Co. Makes First Multifamily Acquisitions With Alexandria, College Park Deals
Washington Property Co. has expanded its multifamily strategy from development to acquisitions, buying several properties in the suburbs this week in deals totaling $70.2M.
The Mark was first built in 1965 and is in the middle of a renovation program, which WPC plans to complete.
The Bethesda-based developer has built several ground-up multifamily projects in the region, including high-rise residential towers that are currently under construction in Downtown Bethesda and Silver Spring. But WPC Senior Vice President Quinn Rounsaville said this Alexandria deal was its first acquisition of an existing multifamily property.
“We have long been committed to multifamily as an asset class in our portfolio, and this acquisition provides an opportunity to grow," Rounsaville said in a release. "We believe that with Amazon HQ2, Virginia Tech’s Innovation Campus, the redevelopment of Landmark Mall, and Virginia’s business-friendly political climate, the Alexandria submarket is poised for tremendous growth over the next five to ten years.”
The firm also closed on the acquisition of three College Park apartment properties for $14M this week.
The trio of low-rise communities were all built more than 50 years ago. The properties are University Gardens at the corner of Rhode Island Avenue and Knox Road, Columbia Manor at 4812 College Ave. and Smith Manor at 4604 Knox Road.
J.E. Smith Corp. sold the buildings, and CBRE’s Bill Roohan, Mike Muldowney, and Kemp Broujos represented the seller. Justin Glasgow of CBRE represented WPC in a financing deal with Burke & Herbert Bank.
WPC said it plans to renovate all 81 units acquired in the sale, adding new flooring, lighting, appliances, and kitchen and bath updates.
All four multifamily properties are near education centers: the three College Park buildings near the University of Maryland, and The Mark near the future Virginia Tech Innovation Campus, planned as part of Northern Virginia's successful bid for Amazon's HQ2.
A spokesperson for WPC said The Mark's current property management firm will stay on following the sale. The firm plans to bring in a third-party property manager for its new College Park buildings.
WPC also closed a third deal this week, acquiring 14435 Cherry Lane Court in Laurel, Maryland, for $3.5M in an off-market transaction.
The site, less than a half-mile from Laurel Town Center, currently has a four-story office building. A spokesperson for WPC said they will raze and replace that with a climate-controlled self-storage facility.
The facility would have 891 storage units on three floors, and feature 12 RV or boat parking spaces as part of those plans.