ARLINGTON, VA—Washington REIT clearly believes that demand for apartment living in Columbia Pike has nowhere to go but up. The locally-based REIT has announced it has acquired a three-building, 711-unit multifamily complex here for $167 million -- and that it plans to build a fourth building on the site that will add 360 additional units.
Bainbridge Cos. is the seller.
The apartment community, The Wellington, also offers a shuttle service to the Pentagon City Metro station, making its somewhat transit friendly -- walking distance to a metro stop is usually viewed as most favorable. However, the property is within walking distance to restaurant and retail amenities on Columbia Pike.
Taken all together, these features add up to a compelling value-add play for the REIT, according to a prepared statement by president and CEO Paul T. McDermott. "Our in-depth targeted research identified The Wellington to be well-located in a submarket with a limited supply of new product and a strong population of renters for both Class A and Class B apartments."
Expect Washington REIT to recycle more assets in the coming months, he added. The REIT sold Country Club Towers in March as part of its larger repositioning strategy.
A request for comment to Washington REIT was not immediately returned.
Washington REIT also plans to upgrade the existing units.
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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.
