MAC CONTINUES URBAN SUCCESS WITH TWO MORE APARTMENT SALES
December 14, 2011, Washington, DC. MAC Realty Advisors recently completed the sale of two apartment buildings, Park Road Courts and The Warner, both located in the active Columbia Heights neighborhood of Northwest Washington, DC. These closings bring MAC’s 2011 investment sales volume to over $137 million. “We are pleased at our continued momentum and penetration into the urban investment space,” stated Bruce Levin, Executive Director with MAC. “The investor appetite for well-located, urban apartment transactions will continue to grow as the nation’s population migrates towards transit and amenity-rich lifestyle locations.”
For The Warner apartments, MAC represented 2620 Limited Partnership / District of Columbia Castle Management Corp. and Boston Capital in the sale of a 44-unit apartment building to New York-based Aria Partners, LLC. The Warner, built in 1904 and listed in the National Register of Historic Places, is located at 2620 13th Street NW equidistant from U Street and the Columbia Heights Metro Stations. The Warner sale also represents the last remaining asset from Boston Capital’s first LIHTC fund formed in 1987. This $5,018,000 sale equates to a price of $114,045 per unit. The buyer will substantially renovate the building to its historic standard while preserving 20% of the units as affordable. This is Aria Partner’s fourth Washington, DC apartment acquisition in the last 18 months. “The Warner is a tremendous value-add renovation play for Aria Partners,” said Andrew McAllister, Executive Director of MAC. “They were able to work collaboratively with the District of Columbia and the tenant association to close this complex transaction with an expedited schedule.” The Columbia Heights submarket is in great need of renovated Class B housing stock to backfill the demand for entry-level renters. “As Class A rents continue their upward trajectory, many existing renters are being priced-out,” continued Mr. McAllister. “A renovated Warner should help to fill that market niche.”
For Park Road Courts, MAC represented Northridge Capital, LLC and Someck Properties, LLC in the sale of a 22-unit apartment building to Urban Investment Partners (UIP). The $3,700,000 sale represented a purchase price of $168,182 per existing unit or $132,142 per unit based on the future redevelopment. Located at 1346 Park Road NW, this apartment building was originally built in1926 as luxury residences. UIP plans to invest $2.7 million on a full renovation of the stately structure, including new plumbing, electrical, heating, and cooling systems, as well as a new roof, windows, and condo-level finishes. UIP plans to add six apartments on the English basement level for a new total of 28 units. "This transaction showcases UIP's strength and expertise in the urban space," said Mr. McAllister who also represented the seller in the Kenyon House sale to UIP earlier this year.
MAC Realty Advisors, LLC (MAC) is a Washington, DC-based real estate advisory firm focused exclusively on the needs of multifamily developers, apartment building owners, and landowners in the greater Washington, DC Metropolitan region. MAC specializes in debt and equity placement, apartment building sales, land sales, and advisory services. Founded by Bruce Levin and Andrew McAllister in 2010, the MAC team has tremendous regional presence and far-reaching relationships that have been fostered through decades of experience. To date in 2011, MAC has closed over $210 million in equity, debt, apartment sales, and land sales transactions.
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