(Read more on the multifamily market.)
MCLEAN, VA-Local developer Kettler, the former KSI, has acquired 19.6 acres in Pentagon City from affiliates of Vornado Realty Trust for approximately $220.4 million in a two-phase purchase. Kettler just closed on 11 acres for $104.3 million. And plans to purchase the remaining 8.6 acres over the next year.
The developer already owned the ground leases to the two multifamily properties on the acreage and the one that is currently under development. Acquiring the land gives it greater flexibility in financing and future development.
Over the past seven years the company has developed 1,050 high-rise units in the first three phases of a 10-phase project. Two buildings, the Metropolitan at Pentagon Row, which delivered 325 units in 2002, and the Metropolitan at Pentagon City, which delivered 326 units in 2005, are now fully occupied, a spokeswoman at the firm tells Globest.com.
The third, the 399-unit Gramercy at Metropolitan Park, is scheduled to come online in July. No preleasing has been signed yet, she says. "We expect to begin leasing within the next couple of weeks."
Future phases of development call for an additional 2,183 units.
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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.
