29th Street Capital Buys The Shelby in Alexandria for $82M
29th Street Capital, a privately held real estate investment firm, has acquired The Shelby, a 240-unit multifamily property in Alexandria, Va., for $82 million, according to the company.
The seller was the California-based Passco Companies, which acquired the property in 2016 for $71.4 million.
“After our routine analysis of the market, recent sales and historically low interest rates and cap rates, we determined that it was in the best interest of our investors to sell the asset,” Alan Clifton, chief investment officer at Passco Companies, told Commercial Observer.
Located at 6200 North Kings Highway, the property marks Chicago-based 29th Street Capital’s first entry into the Washington, D.C. market. In the last year, the company has acquired 22 multifamily assets across the U.S. that contain more than 5,000 units.
“Alexandria and the surrounding area are growing, making it an appealing market to be present in,” Brian Berry, 29th Street Capital’s senior vice president of acquisitions, told Commercial Observer. “This includes the job growth being generated by the Virginia Bio-Tech Campus and Amazon H2Q. The micro-market is appealing as well, with the addition of the mixed-use project, South Alex, that is adjacent to Shelby.”
South Alex, a 10-acre site located at the intersection of South Kings Highway and Richmond Highway, will include approximately 20,000 square feet of retail space and 400 apartments.
The investment company is planning to select interior and exterior upgrades to better position The Shelby for future tenants.
“While the property is in good condition, we plan to upgrade our units and further activate the amenity space,” Berry said. “This includes improvements to the fitness center and club room, as well as replacing the vinyl flooring, updating backsplashes and adding a technology package to all units.”
Originally built in 2014, The Shelby is near the Huntington metro station, close to Old Town Alexandria, National Landing and the District.
Drew White and Carter Wood at Berkadia represented the buyer in the deal, while the firm’s Mitch Sinberg, Brad Williamson and Wes Moczul arranged mortgage financing. The details on the financing were not disclosed and the firm did not immediately respond to a request for comment. White also represented the seller in the deal.
Haven Residential, 29th Street Capital’s in-house property management company, will oversee management and leasing for the property.
Keith Loria can be reached at Kloria@commercialobserver.com.