Virginia

WashREIT Acquires 1,685-Unit Multifamily Portfolio in Northern Virginia for $379.1M

by Kristin Harlow May 1, 2019

ALEXANDRIA, HERNDON, MANASSAS AND LEESBURG, VA. — WashREIT (NYSE: WRE) has acquired a five-property, 1,685-unit multifamily portfolio in Northern Virginia for $379.1 million. The properties include: 205 Century Place in Alexandria; 13690 Legacy Circle and 2511 Farmcrest Drive in Herndon; 10519 Lariat Lane in Manassas; and 86 Heritage Way NE in Leesburg. Sellers were not disclosed. “We are pleased to be growing our Northern Virginia multifamily portfolio by 53 percent at a time when that region is poised to deliver strong economic growth fueled by a thriving technology sector,” says Paul McDermott, president and CEO of WashREIT. “We look forward to capitalizing on northern Virginia’s robust job growth prospects and its continued demand for quality, value-oriented rental housing on an even larger scale.” Although details on the properties were not disclosed, the buyer refers to the portfolio as being value-add, suggesting property improvements are on the horizon for the portfolio. WashREIT now owns a total of 4,861 multifamily units in Northern Virginia. The company expects to close on a second acquisition totaling 428 units across two apartment communities in Maryland’s Montgomery County during the second quarter of this year for $81.9 million. The company plans to pay for its expansion …

May 1, 2019

Acquisitions Retail Southeast Virginia

Armada Hoffler to Acquire Two Retail Centers in Virginia Beach for $105M

by Alex Tostado April 30, 2019

VIRGINIA BEACH, VA. — Armada Hoffler will acquire Red Mill Commons and Marketplace at Hilltop in Virginia Beach for a combined $105 million from local retail developer Venture Realty Group. As part of the acquisition, Armada Hoffler will exchange 4.1 million operating partnership units each valued at $15.55, as well as the assumption of $36 million in debt and $5 million in cash. Red Mill Commons is a 374,000-square-foot retail center that was 98 percent leased at the time of sale to more than 90 tenants, including T.J. Maxx, HomeGoods, Dollar Tree, Outback Steakhouse, Walgreens, Panera Bread, Buffalo Wild Wings, Starbucks Coffee and Chipotle Mexican Grill. Walmart, Target and The Home Depot shadow anchor the property, which is located five miles from both Sandbridge Beach and Naval Station Oceana, the second largest employer in the city. Marketplace at Hilltop is a 118,000-square-foot center that features tenants such as Total Wine, Michaels, Panera Bread, Chick-fil-A and Arby’s. The shopping center is 100 percent occupied and adjacent to the only Whole Foods Market in the city. Venture Realty Group has been retained to lease and manage both properties. Armada Hoffler expects both deals to close this quarter.

April 30, 2019

Market Reports Multifamily Southeast Southeast Market Reports Virginia

Hampton Roads Apartments a Gold Mine for Yield-Seeking Investors

by Alex Tostado April 29, 2019

Seeking higher yield, private capital multifamily investors are increasingly looking to the Norfolk-Virginia Beach-Chesapeake MSA. This region of seven cities and a population of more than 1.7 million people is known collectively as Hampton Roads. Strong fundamentals, a youthful population and an expanding economy offer more promising returns than most surrounding MSAs. Compressing cap rates Over the last 12 months, cap rates compressed nationwide. In Hampton Roads, Class A cap rates ranged between 5.25 and 5.50 percent. There is very little spread between Class A and going-in cap rates for well located, true value-add deals. Notable recent sales include the Waypoint Portfolio in Newport News, Trail Creek in Hampton and Brookfield and Woodshire in Virginia Beach. Collectively, cap rates for these transactions ranged from 5.50 to 5.75 percent. Transaction volume in 2018 exceeded $665 million. With deals in the MSA now trading as high as $70 million a piece, more private equity groups nationwide are seeking to invest in the market. Strong fundamentals Fundamentals in Hampton Roads continue to improve with steady year-over-year rent growth and occupancy near 95 percent. With numerous MSAs battling oversupply and concessionary pressures, Hampton Roads apartment owners benefit from a more modest development pipeline. CoStar …

April 29, 2019

Leasing Activity Office Southeast Virginia

Carr Signs Coworking Firm Industrious to 25,000 SF Lease at Arlington Office Building

by John Nelson April 26, 2019

ARLINGTON, VA. — Carr Properties has signed coworking firm Industrious to a 25,000-square-foot lease at 2311 Wilson, a new LEED Gold-certified office building situated one block from the Court House Metro station in Arlington. The Chicago-based coworking firm plans to occupy the entire third floor at 2311 Wilson by the first quarter of 2020. Carr has recently inked deals with boutique fitness concept Solidcore and For Five Coffee at the office building, which was delivered in 2018. Amenities include a two-story lobby, glass curtain walls, column-free floor plates, onsite daycare, dedicated park, fitness center, shared rooftop space, conference center, secure bike room and electric car charging stations.

April 26, 2019

Loans Multifamily Seniors Housing Southeast Virginia

HJ Sims Arranges $201.1M in Construction Financing for Seniors Housing Project in Norfolk

by Alex Tostado April 24, 2019

NORFOLK, VA. — HJ Sims has arranged $201.1 million in financing for the construction of a new residential tower at Harbor’s Edge, a continuing care retirement community (CCRC) in Norfolk. The property was originally developed in 2002 in cooperation with the City of Norfolk as part of a master development plan called “Fort Norfolk Neighborhood.” HJ Sims has partnered with Harbor’s Edge since the early 2000s, structuring, placing and underwriting the initial seed capital transaction, first phase of development financing, a refinancing in 2014 that contained predevelopment capital for the River Tower Phase II construction and the development financing for the River Tower. HJ Sims coordinated with two commercial banks, including SunTrust Bank and TD Bank, with the former providing $65 million in financing.

April 24, 2019

Development Multifamily Southeast Virginia

Dominion Realty, Amzak Capital Break Ground on $47.6M Apartment Complex in Richmond

by Alex Tostado April 15, 2019

RICHMOND, VA. — Dominion Realty Partners (DRP) and Amzak Capital Management have broken ground on Boulders Lakeside, a $47.6 million apartment project in Richmond. The 248-unit asset is situated on 24 acres within a Qualified Opportunity Zone. Boulders Lakeside is expected to open to its first residents in mid-2020 and be finalized in late 2020. Community amenities will include a swimming pool, green activity lawn, automated package delivery system, fitness center, designer club area and a game room. Interior amenities will feature lake views, large kitchen prep islands, oversized windows, sliding glass doors, private unit balconies, exterior storage and keyless unit entry. Roger Edwards and Justin Good of HFF arranged equity placement for the development, and Citizens Bank will provide construction financing. The design team includes architect Rule Joy Trammell + Rubio, general contractor Armada Hoffler Construction and civil engineer RK&K.

April 15, 2019

Company News Southeast Virginia

Executive Vice President of Divaris Real Estate Dies at Age 40

by Alex Tostado April 12, 2019

VIRGINIA BEACH, VA. — Alex Divaris, executive vice president of Divaris Real Estate Inc., died April 8 due to complications from colon cancer. He was 40 years old. Divaris assisted local, regional and national investors, users and sellers in the acquisition and disposition of retail, office and industrial properties in the Mid-Atlantic and Southeast. He earned a bachelor’s degree of business administration in finance from The College of William and Mary in Williamsburg, Va., is a Certified Commercial Investment Member (CCIM) and sat on the board of directors of the Central Business District Association in Virginia Beach. Divaris is survived by his wife, Emily, and two children, Hazel and Gabriel.

April 12, 2019

Loans Multifamily Southeast Virginia

HFF Arranges $13.4M Acquisition Loan for Apartment Complex in Norfolk, Virginia

by Alex Tostado April 8, 2019

NORFOLK, VA. — HFF has arranged a $13.4 million acquisition loan for The Gates at West Bay Apartments, a 202-unit community in Norfolk. The 10-year, fixed-rate Freddie Mac loan includes five years of interest-only payments. The borrower was a partnership between Brick Lane and Enterprise Community Investment Inc. The Gates at West Bay Apartments comprises 10 two-story buildings and was 95 percent occupied at the time of the sale. Of the 202 units, 99 percent are affordable to low-income units.

April 8, 2019

Development Retail Southeast Virginia

Federal Realty to Redevelop 90,000 SF Shopping Center in Northern Virginia

by Alex Tostado April 3, 2019

SPRINGFIELD, VA. — Federal Realty Investment Trust has unveiled plans to redevelop Old Keene Mill, a 90,000-square-foot shopping center in Springfield. Whole Foods Market, Planet Fitness and Walgreens anchor the center, which is situated at the corner of Old Keene Mill and Rolling roads, about 16 miles southwest of downtown Washington, D.C. Redevelopment plans include introducing an outdoor fireplace, communal village design, new landscapes, wide sidewalks and new façade and signage. Completion is expected before Thanksgiving.

April 3, 2019

Acquisitions Hospitality Southeast Virginia

Apple Hospitality REIT Sells Nine Hotels in Five States for $95M

by Alex Tostado April 2, 2019

RICHMOND, VA. — Apple Hospitality REIT has sold nine hotels in Florida, Louisiana, North Carolina, Virginia and Texas for $95 million. The hotels total 1,054 rooms. The sold hotels included two in Florida (Homewood Suites by Hilton Sarasota and TownePlace Suites by Marriott Tampa), one in Louisiana (SpringHill Suites by Marriott Baton Rouge), one in North Carolina (Hampton Inn & Suites by Hilton Holly Springs), two in Virginia (Courtyard by Marriott Bristol and Courtyard by Marriott Harrisonburg) and three in Texas. The buyer(s) was not disclosed. Richmond-based Apple Hospitality REIT is publicly traded and owns 234 hotels in 34 states.

April 2, 2019

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