JV Picks Up Workforce Apartment Complex in District Heights for $164M
The sellers were Dragone Realty Investments and GMF Capital. The acquisition was financed with Fannie Mae debt arranged by Walker & Dunlop. No other financing terms were disclosed.
“The opportunity to acquire a large asset in our backyard that fit our criteria to preserve workforce housing was very attractive,” Sharif T. Mitchell, the operating principal of Dantes Community Partners, told Commercial Observer. “This transaction is aligned with our mission to address America’s growing affordability crisis through the creation and preservation of affordable and workforce housing that is sustainable for residents and generates reliable income for investors.”
Located at 6501 Hil-Mar Drive, less than 20 minutes from downtown Washington, D.C., Avanti Apartments consists of 26 garden rental buildings with a total of 930 apartments.
Amenities include two resort-style swimming pools, a new two-story clubhouse, a newly renovated pool house, a business center, a fitness center and a dog park.
The joint venture recorded a new long-term affordability covenant with the county that will create 372 new units of income- and rent-restricted housing, with 20 percent of units at 50 percent area median income, or AMI, and an additional 20 percent of units at 80 percent AMI, according to Mitchell.
Jonathan Rose Companies acquires and preserves existing affordable, mixed-income, and naturally occurring affordable multifamily housing in high-demand markets across the United States.
“We saw here an opportunity to collaborate with a best-in-class operating partner to create new affordability, deliver social services programming, and implement greening at scale in an increasingly rent-burdened market,” Max Jawer, associate director of acquisitions at Jonathan Rose Companies, told CO.
The joint venture plans to invest in capital improvements, and drive down energy consumption through green initiatives.
“We’re excited to reduce carbon emissions and water use at significant scale and deliver an array of social services and community upgrades, which will touch the lives of over 2,000 residents,” he said.
A CBRE team arranged the sale. Requests for comments were not immediately returned from the broker or the sellers.
Faria Management, which operates more than 1,100 units in the D.C. region, will manage the complex.
Keith Loria can be reached at Kloria@commercialobserver.com.