Value-Add Apartment in Woodridge Trades for $81M
The seller was Castle Lanterra and the buyer was Capital Square 1031, which acquired the 328,066-square-foot building for nearly $200,000 per unit.
WOODRIDGE, VA—Misty Ridge, a 409-unit apartment community located here, has traded for $80.5 million. The value-add community was acquired by Capital Square 1031, which paid nearly $200,000 per unit for the 328,066-square foot building. Castle Lanterra was the seller.
Transwestern Commercial Services’ Dean Sigmon, Robin Williams and Justin Shay represented the seller in the deal.
Misty Ridge attracted a significant number of local and institutional investors looking to acquire a value-add property in a strong Northern Virginia market,” Sigmon said in prepared remarks. The buyer will be able to potentially raise rental rates by improving several amenity areas and upgrading existing units, he also notes.
The garden-style community has had nearly $5 million in renovations invested in it since 2013. If the buyer improves the remaining 144 units, the upgrades could provide premiums ranging from $150 to $200 per month per unit.
According to Delta Associates’ Second Quarter 2019 Mid-Atlantic Class A Apartment Market Report, vacancy remains low at 4.7% in east Prince William County as a significant amount of new supply has been absorbed in recent years. Rent growth is reported to be 4.3% in the 12 months ending June 2019.
Misty Ridge, located in Prince William County, is near US Route 1.