(To read more on the multifamily market, click here.)
NORTHERN VA-San Francisco-based private investor Carmel Partners Inc. has invested $106.5 million in three multifamily properties and one mixed-use complex in the Northern Virginia market with an eye to repositioning these in-fill assets. The firm did not disclose the sellers of the four individual transactions but did say it plans to invest close to $25 million renovating the properties, the newest of which was built in 1976, according to a company release.
The complexes, the Summit Apartments, in Alexandria; the Chesterfield Apartments, in Arlington; and Windsor Towers and Stratford Towers, also in Arlington, were purchased by Carmel Partners Investment Fund II LP.
Carmel has budgeted $24.9 million for its renovations plans, which largely consist of upgrading the interior units, common areas, and in one property adding a business unit and expanding existing leasing facilities. For instance at the Summit Apartments, a 14-story, 141-unit complex acquired for $26.5 million, Carmel will spend $5.9 million on such upgrades. Built in 1976, it is the newest of the lot.
The Chesterfield Apartments, acquired for $11.5 million, is a mixed-use building with 104 units, eight of which are commercial. Carmel has set aside $3.9 million to convert the commercial units into three apartments and to make the investment in the business and leasing facilities.
The most recent acquisitions out of these four properties are Windsor Towers and Stratford Towers, four mid-rise buildings located next to each other. Together they comprise 507 units and were acquired for a total of $68.5 million. The firm plans to spend $15.1 million renovating these properties. They were built in 1959 and 1963 respectively.
"These acquisitions are a continuation of our policy of investing in in-fill locations within our core markets and executing our value-add strategy," says CEO Ron Zeff in a statement.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
