Chevy Chase Land Company Picks Up Arlington Apartment Building for $90M [Updated]
The Chevy Chase Land Company bought a 173-unit apartment building, 672 Flats, in Arlington, Va., for $90 million through a 1031 exchange from its sale of a D.C.-area office building, the developer announced last week.
Maryland-based Chevy Chase Land Company bought the “boutique” apartment building at 672 North Glebe Road in the Ballston neighborhood from a joint venture between Clark Enterprises, Inc. and The Penrose Group, The Washington Business Journal first reported. The development—which finished construction in June—boasts a fitness center, game room, bike storage, a parking garage and more.
USAA Real Estate provided a 12-year, fixed-rate acquisition loan to Chevy Chase Land Company for the purchase of the six-story development, according to brokerage HFF, which represented the the sellers and also negotiated the debt placement on behalf of the buyer.
“The acquisition of 672 Flats broadens the Land Company’s investments in transit-oriented, urban properties and diversifies the portfolio with the acquisition of a Northern Virginia, multi-family asset,” Tom Regnell, the president and CEO of Chevy Chase Land Company, said in a statement. “Ballston is one of the strongest markets in our region and continues to grow and thrive by offering an exceptional level of livability with strong employment and demand drivers, ideal demographics and a vibrant live-work-play environment.”
Mark Gregg, the founder of The Penrose Group, did not immediately respond to a request for comment.
Chevy Chase Land Company used a 1031 tax exchange from the sale of a Maryland office building to buy 672 Flats. Last month, investment trust Saul Centers bought Chevy Chase Land Company’s five-story property at 7316 Wisconsin Avenue in Bethesda, Md., for $34.5 million, as Commercial Observer previously reported.
Monthly rents for studios at 672 Flats range from $2,130 to $2,325, while rates for one-bedroom units range from $2,305 to $3,010, according to the property’s website. Rates for available two-bedroom apartments sit between $2,965 and $3,895.
Update: This story was updated to include details of the acquisition financing as well as monthly rental rates at 672 Flats.