Bozzuto Secures $27M for Northern Virginia Multifamily Buy
By Nick Trombola April 23, 2024 1:25 pm
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Bozzuto Group has dipped back into the multifamily pool, with mortgage broker Berkadia providing the floaties.
Bozzuto last week purchased the Gables 12 Twenty One multifamily complex, in Rosslyn, Va., from previous owners Gables Residential for $44.5 million, according to property records. It is the firm’s first multifamily purchase in 16 years, The Washington Business Journal reported.
For the purchase, Berkadia’s Patrick McGlohn, Brian Gould, Miles Drinkwalter and Pat Cunningham provided $27.3 million of Freddie Mac acquisition financing on behalf of Bozzuto.
“This was a dynamic and competitive financing process that attracted numerous financing options given the strength of the asset, location and sponsor,” McGlohn said in a statement. “Our partners at Freddie Mac exhibited nimbleness and were able to quickly lock the interest rate, which proved to be extremely valuable given the current Treasury volatility.”
Located between 1200 North Queen Street and 1201 and 1225 North Pierce Street, the 132-unit complex has recently been redubbed as The Alcott.
Built in 2009, the Alcott has an average unit size of 813 square feet and was 96 percent leased at the time of the sale, according to Berkadia’s marketing materials for the property.
“Under current market conditions, new construction of apartment buildings is extremely costly,” Bozzuto CEO Toby Bozzuto told Commercial Observer via email. “Apartment developers across the country are challenged by an inflationary market, which drives up the costs of capital and construction costs. As such, it is currently more advantageous to purchase an existing community, particularly one like The Alcott, which is located in a desirable location with prime amenities.”
Gables Residential did not immediately respond to a request for comment.
Bozzuto has its hands full on the Maryland side of the Washington, D.C., region. In a joint venture with the Chevy Chase Land Company, the firm has spent the last few years developing the 6-acre, mixed-use Chevy Chase Lake, which these days features three luxury apartment buildings — The Barrett, The Claude and The Ritz-Carlton Residences, Chevy Chase — along with 100,000 square feet of retail space. Fitness studio StretchLab and Dok Khao Thai Eatery signed leases there in September.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
