NOVO Acquires DC Value-Add Apartments From Stonebridge
Stonebridge Investments has sold the Glenwood Apartments, a 90-unit multifamily community in Washington, D.C., for $13.7 million, according to Greysteel, which represented the seller in the transaction.
Public records listed the buyer as NOVO Properties.
Located at 2315-2321 Lincoln Road NE, in D.C.’s Brookland neighborhood, the property was originally built in 1942 and Stonebridge acquired the property in 2014 for $6.9 million. The property recently underwent a $1.5 million renovation, which included upgrades of the lobbies, hallways, leasing office and more than a third of the units.
“[Stonebridge] acquired the property prior to the announcements of most of the surrounding developments, which will continue to push rent rates as the submarket continues to evolve,” W. Kyle Tangney, a managing director at Greysteel, told Commercial Observer. “A new buyer will be able to continue and complete the unit renovation program and see asset appreciation as rents rise.”
It’s Tangney’s understanding that the new buyer will carry on Stonebridge’s plan of upgrading the property and its units.
“The Glenwood Apartments was a proven value-add opportunity with 37 of 90 units renovated with an average renovation premium of $330,” Tangney said, referencing th additional rent they’re charging per month. “The owners added substantial value by proving out the unit renovation premiums and improving amenity spaces.”
The property is located in a quickly changing submarket within walking distance to well-known D.C. University, The Catholic University of America, and a short drive from the region’s second-largest hospital, MedStar Washington Hospital Center.
The community consists of studio, one- and two-bedroom units, with amenities that include a courtyard, dog park and grilling area.
Joining Tangney in representing the seller were Greysteel’s President and CEO, Ari Firoozabadi, Director Herbert Schwat and Investment Associate Dutch Seitz. The buyer did not utilize a broker, according to Greysteel.