WASHINGTON, DC—The Washington REIT is selling one of its properties, Country Club Towers, located at 2400 South Glebe Rd., in Arlington, VA.
The 227-unit, 159,000-square foot building is trading for $37.8 million, or $166,520 per unit. The eight-story property is 95% occupied.
GlobeSt.com did not receive a response from WRIT seeking comment.
Washington REIT has been selective with its acquisition strategy, preferring to seek out assets in off market deals. These properties are not the high-profile transactions pursued by institutional investors but rather smaller-value add deals that fit with its rejiggered investment approach.
There has been less discussion about its approach to dispositions, but capital recycling is clearly a motivator. This subject was touched upon in the REIT's recent earnings call, when it was noted that WRIT planned to fund 25% to 30% of its acquisitions with dispositions, which equates to around $90 million to $135 million.
CEO Paul McDermott, though, highlighted the more strategic nature of its sales cycle, although he did say there was one asset under contract. The REIT plans to see a few more throughout the year, he continued, "….and as far as the other assets that we will take to the market, we have three food groups to chew on, and I think when we feel like we've got those in the best position to maximize value for our shareholders, we'll execute on the sale."
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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.
