An industry source tells GlobeSt.com that the 'whisper' asking price for the portfolio is $295 million. Archstone declined to comment citing "corporate policy of not discussing its portfolio unless a sale is completed." C&W also declined to comment.
Consisting of class A and class B buildings, there is a value-add upside to some of the assets in the portfolio, according to the bid sheet. For instance, "significant upside potential exists to complete unit upgrades at 2501 Porter St., where ongoing renovations have yielded increases of $250 per unit," it said.
Common area upgrades at Calvert Woodley and Cleveland House--two other buildings along the Connecticut corridor--would also achieve value. Another selling point is the buildings' proximity to one another and hence, the portfolio's greater operating efficiency.
While one-off buildings continue to sell in the DC area, there have been few multifamily portfolios of this size and in these neighborhoods to come to market in recent times. How it fares in the DC market, though, will depend on area fundamentals that are still in play. For instance, vacancy rates are expected by some analysts to rise this year. Other projections have put the DC apartment market on an even keel, with rent growth outpacing vacancies by a comfortable margin.
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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.
