ROSSLYN, VA—Another day, another multifamily trade in the DC area. This time, the asset in question was a newly-delivered apartment building in the Rosslyn-Ballston Corridor.
The 67-unit Avery Row Apartments traded for $29 million. The seller was Rolfe 67, an LLC made of up local investors. The buyer was Deutsche Bank, representing a client. DTZ Senior Managing Director Chris Doerr represented the seller in the deal. He declined to discuss pricing; GlobeSt.com learned about the price from a source.
The apartment building has, per the sensibilities of an apartment dweller in this submarket, a number of high-end finishes, including granite countertops, stainless steel appliances, and designer lighting. There are also onsite amenities including a clubroom and outdoor veranda and cyber café as well as the mix of retail and restaurants around the Courthouse Metro stop.
Those factors, however, was the not chief reason for the Deutsche Bank purchase -- or at least not the direct reason.
Simply put, multifamily product in the Rosslyn-Ballston corridor is holding firm to underwriting assumptions -- even as new supply enters the market. This is not necessarily the case in other submarkets, such as North Rockville or NoMA, for example. In certain transactions there are signs that underwriters are getting a bit leery of the multifamily asset class, the source says.
Doerr, however, presents a more positive interpretation of the situation. "This deal speaks to the strength of the Rosslyn-Ballston Corridor," he tells GlobeSt.com. "It is why companies like Deutsche Bank are willing to compete for these assets." According to Doerr the building had a number of companies vying to acquire it.
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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.
