(Read more on the multifamily market.)
FAIRFAX, VA-Korman Communities, a luxury extended-stay company based in Plymouth Meeting, PA, has acquired a multifamily development recently completed off Dulles Toll Road for $59 million. The 169-unit, mid-rise property is located within a 63-acre mixed-use development that will, when completed, contain approximately 1.5 million sf of office space, 1,095 residential units, two hotels and 34,000 sf of ground-floor retail space.
Korman acquired the multifamily development from the developer, local firm Crimson Partners. The building is one of two structures completed in the park; the other is an office building. The entire development is expected to be complete over the next two years.
The multifamily property had originally been slated as a condo conversion. Now that the condo conversion market has softened considerably, Korman Communities was able to acquire the property at 20% to 25% discount, co-president Bradley Korman tells GlobeSt.com.
Korman will be positioning the property as short-term furnished and long-term unfurnished apartments for corporate users. "There is a lot of demand for corporate space here, from companies like Oracle and Nextel." He says he has received interest in the project from clients that lease space in the District as well as New York, New Jersey and Philadelphia-based clients.
Korman AKA will offer one-bedroom one-bath; one-bedroom with bath and den; and two-bedroom, two-bath units. Rental rates will range from $125 per day, based on a 30-day stay, for furnished one-bedroom apartments to $2,100 per month for unfurnished two-bedroom units. Korman will begin leasing at the end of May.
Korman's Scott Relick, president of KCI Investment Co. oversaw the acquisition of the property from Crimson Partners. KCI Investment Co. is the acquisition arm of Korman Communities.
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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.
