By the end of the year, Federal Capital hopes to have completed some $500 million to $600 million in acquisitions, says Howard Jenkins, an associate for the locally based buyer. The newest pieces for the portfolio are Circle Towers Apartments, a 16-acre, mixed-use complex at 9411 Lee Highway in Fairfax, and Shirlington Gateway, a 12-story, 207,000-sf office building at 2800 Shirlington Rd. in Alexandria.

For the most part, the company's acquisition strategy is investing in under-managed, under-capitalized properties that need some improvements or upgrades. Jenkins says Shirlington Gateway, a glass-and-steel building that is 97% leased to a group of government contractors, associations and professional services firms, is somewhat of an exception because it is a core plus building in an improving submarket. Federal Capital plans to invest about $1 million as leases roll over, to upgrade the facilities and make cosmetic improvements to the lobby. As part of the transaction, Federal Capital assumed a loan with a 4.98% interest rate.

Federal Capital will invest $12 million to reposition Circle Towers, which consists of a 40,000-sf office building, 17,000 sf of retail space, 52 townhouses and 554 high-rise apartments. Federal Capital principal Alex Marshall tells GlobeSt.com that Freddie Mac has placed a first mortgage on the property and the rest of the transaction was financed by a New York-based opportunity fund.