Grosvenor Acquires Net Zero-Aimed Bethesda Multifamily for $95M
Grosvenor has acquired the coincidentally named Grosvenor Tower, a 237-unit apartment building in Bethesda, Md., for $95 million, according to the company.
Arlington, Va.-based AvalonBay Communities sold the building, which was originally built in 1997 and last renovated in 2008.
The 21-story Grosvenor Tower fits in with Grosvenor’s investment strategy of acquiring and improving existing high-quality multifamily properties in coastal gateway markets.
“Grosvenor Tower has all the fundamentals that make value-add repositioning appealing,” Scott Brody, senior vice president of investment and general manager of Grosvenor’s Washington, D.C. office, told Commercial Observer. “Plus, we are quite familiar with D.C.—this is a primary market for Grosvenor, and we currently have active properties, along with a full-service office, in the region.”
Grosvenor noted it has a net zero objective with the building, planning to significantly lower the carbon profile of the property while investing in upgrades to modernize common areas and improve apartment interiors. Those include adding electric vehicle charging stations, upgrading to LED lighting and installing low-flow water fixtures among other measures.
“As the real estate market and the economy begin to slow, we are well positioned to purchase and enhance properties like Grosvenor Tower over the next 12-to-24 months,” Brody said. “We’re excited to invest in sustainable, contemporary upgrades that improve the lives of residents and align with our long-term sustainability commitments.”
The company also plans to implement a supply chain diversity program to ensure minority and women owned vendors are fairly represented in remodel work and ongoing building operations.
Located at 10301 Grosvenor Place in Montgomery County’s bustling life sciences hub, the building features one- and two-bedroom apartments. The property is close by the Grosvenor-Strathmore Metro Station, with easy access to the Beltway I-270.
“When you combine this highly desirable neighborhood and established resident community, this is an opportunity to make a meaningful, sustainably driven investment into a high-quality multifamily asset, adding to our growing urban property portfolio,” Brody said.
Bozzuto Management will oversee day-to-day property management on the property.
Brian Crivella and Walter Coker of Berkadia represented Grosvenor in the deal. It was unclear who represented the seller.
Keith Loria can be reached at Kloria@commercialobserver.com.