WASHINGTON, DC—Washington REIT acquired The Wellington last July for $167 million. By many measures, it was a great value-add find for the REIT: The Arlington, VA-based 711-unit property also came with on-site density to develop approximately 360 additional units, or as CEO Paul T. McDermott has said — a five-story, Class A apartment building. In addition, Washington REIT can renovate about 680 of the units to a mid-teen return, which beats the average return on renovations.
Washington REIT says in its recent earnings report that it financed its acquisition via a 1031 Exchange. Last year it sold Munson Hill Towers, a 258,000 square foot high-rise multifamily in Falls Church, VA., for $57.1 million and in December of 2015, it sold Montgomery Village Center, a 197,000 square foot , shopping center in Montgomery Village, MD, for $27.8 million.
JLL Secures $48.9M for North Bethesda Place I & II
Earlier this month Hines acquired Bethesda Place I and II, two offices totaling 345,567 square feet, from JBG Cos.
The financial details of the deal were not disclosed, but public records put the transaction at about $55 million.
JLL's Capital Markets team provided more details about the financing this week. Santander provided a $48.9 million loan, which is to also cover future funding for tenant improvements and leasing commissions.
Mike Yavinsky, Jon Goldstein and Wes Boatwright led the team on this deal.
WASHINGTON, DC—Washington REIT acquired The Wellington last July for $167 million. By many measures, it was a great value-add find for the REIT: The Arlington, VA-based 711-unit property also came with on-site density to develop approximately 360 additional units, or as CEO Paul T. McDermott has said — a five-story, Class A apartment building. In addition, Washington REIT can renovate about 680 of the units to a mid-teen return, which beats the average return on renovations.
Washington REIT says in its recent earnings report that it financed its acquisition via a 1031 Exchange. Last year it sold Munson Hill Towers, a 258,000 square foot high-rise multifamily in Falls Church, VA., for $57.1 million and in December of 2015, it sold Montgomery Village Center, a 197,000 square foot , shopping center in Montgomery Village, MD, for $27.8 million.
JLL Secures $48.9M for North Bethesda Place I & II
Earlier this month Hines acquired Bethesda Place I and II, two offices totaling 345,567 square feet, from JBG Cos.
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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.
