ALEXANDRIA, VA-Private equity companies the Carlyle Group and AION Partners have acquired a 570-unit mid-rise apartment building in Alexandria for $93 million in an off-market transaction. The property’s in-place cap rate is just shy of 6%. The property, formerly called Belle Haven Towers and since branded Cityside Huntington Metro by its new owners, is 96% occupied.
The new owners will begin a $9.5 million renovation on the grounds, common areas and apartment units. The Bainbridge Cos., has been selected as the property manager. Developed in two phases in 1964 and 1974, the original family that built the complex have owned it ever since, through various limited partnerships. Funding for the deal is being sourced from AION Partners and Carlyle Realty Partners VI, which makes opportunistic real estate investments in North America.
The two firms are on the lookout for additional multifamily investments in the area for this fund, but optimally priced deals are few and far between there, AION Partners principal Michael Betancourt tells GlobeSt.com. They were able to grab this building when a sales contract that the developer seller had inked with another firm encountered difficulties. “We were able to secure the transaction through a small window of opportunity,” he says.
They are also looking for opportunities in other high growth markets in the southeast, including North Carolina, Florida and Georgia. “We do like the DC market, but the availability of product and pricing there is very challenging.”
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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.
