Investors Buy Value-Add Apartments in SW D.C.
Washington, D.C.—An investor group that includes Urban Investment Partners (UIP), PRP LLC and Perseus Realty has acquired the 289-unit Capitol Park Towers apartment community at 301 G Street, SW, in Washington, D.C. The property is just south of I-395 in the Southwest Waterfront district.
According to the buyers, they plan to invest in various major improvements over the next several years. The buyers reached an agreement with the New Capitol Park Towers Tenants Association—who had, for a time, expressed an interest in buying the property—that allows for the preservation of the rent-controlled status of the property, while providing improvements to the property with no rent increases outside of standard annual increases under rent control.
D.C.-based UIP invests opportunistically in a variety of asset classes, with a primary focus on multifamily properties. Since 2001, UIP principals have sponsored real estate funds in metro DC with a total valuation of over $400 million. UIP General Contracting Inc., subsidiary of UIP, will do the renovation work. UIP subsidiary UIP Property Management Inc. will be Capitol Park Towers’ property manager.
Perseus Realty, founded in 2004, specializes in office and residential assets in metro DC. It has owned and operated over 1 million square feet of space with an additional 1 million square feet in its development pipeline.
The Washington, D.C., apartment market remains a focus of investor interest. According to investment specialist Marcus & Millichap’s third quarter 2013 report on the market, REITs, institutions and local investors are snatching up properties throughout the region. Local buyers in particular are chasing value-add deals throughout the metro, though limited inventory is hindering transaction velocity.