The five-building apartment complex was built in the 1940s and is located in Arlington's Westover neighborhood, which explains the higher-than-expected price point for an aging asset. This neighborhood has seen an influx of new development of luxury town and single family homes.

“Buyers aren't basing pricing on the asset's financials,” he said. Instead they are sizing assets for tear down and redevelopments and pricing accordingly. Arlington County was still able to outbid these developers, he said.

The property was not widely marketed, as the seller had received unsolicited offers in the past for the asset.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.

ARLINGTON, VA–Arlington County closed out its fiscal year, which ended Oct. 1, with a nice haul of newly-acquired affordable housing product for its residents.

The county secured a $10 million loan and with that capital it was able to purchase about eight older apartment buildings in total that will be preserved as affordable housing, including Westover Apartments, a 40-unit, 5-building apartment portfolio.

The Westover Apartment portfolio sold for $8.6 million, or $215,000 per unit, according to Marcus & Millichap's Dawson Rinder, who along with Christopher Chadwick marketed the portfolio on behalf of the seller, a private investor who's owned the property since 1997.

“$215,000 per door is a little above market rate but they were able to meet the market,” Rinder tells GlobeSt.com.

The five-building apartment complex was built in the 1940s and is located in Arlington's Westover neighborhood, which explains the higher-than-expected price point for an aging asset. This neighborhood has seen an influx of new development of luxury town and single family homes.

“Buyers aren't basing pricing on the asset's financials,” he said. Instead they are sizing assets for tear down and redevelopments and pricing accordingly. Arlington County was still able to outbid these developers, he said.

The property was not widely marketed, as the seller had received unsolicited offers in the past for the asset.

Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.