WASHINGTON, DC—In August, GlobeSt.com reported that, per a source's report, Washington REIT found a buyer for a Falls Church asset, Munson Hill Towers for $57.1 million.
In its earnings call last week, CEO Paul McDermott told listeners that the asset had traded that week for $57 million.
He said that the REIT was expecting slower growth in that particular submarket than the rest of its multifamily portfolio, hence its sale.
Located at 6129 Leesburg Pike, Munson Hill is a 279-unit, 12-story building developed in 1963.
Munson Hill Towers was a classic recycling play, McDermott said. He compared it to another sale the REIT made this year, that of Country Club Towers located at 2400 South Glebe Rd., in Arlington, VA.
That property, a 227-unit, 159,000-square foot building, traded for $37.8 million, or $166,520 per unit.
Now here's an example of an apartment building with legs, in Washington REIT's view: The Wellington.
Washington REIT acquired the Arlington, VA-based 711-unit property that also came with on-site density to develop approximately 360 additional units, for $167 million this past July.
One of the reasons the REIT likes this deal so much is that it can renovate about 680 of the units to a mid-teen return, which beats the average return on renovations.
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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.
