Cortland Acquires 4 in Virginia for $1B
Two of the properties in the Rosslyn and Pentagon City submarkets have closed, with two more on the way.
Cortland Rosslyn. Image courtesy of Cortland
Cortland, a multifamily investment, development and management company, has re-entered the suburban Washington, D.C., market with acquisitions of four properties in Arlington, Va., totaling more than 1,500 units for more than $1 billion.
Cortland noted it plans to double its investment in the area with the goal of becoming a top player in the market in the near future. Mike Altman, Cortland’s chief investment officer, said in prepared remarks northern Virginia is a highly covered location that is already seeing a rebound in growth as residents move back to the urban core. He said the four acquisitions—two of which have not yet closed—are just the start of the company’s investment in the region.
The initial investments are Aubrey, a 331-unit luxury apartment community in The Highlands development in Rosslyn owned by Penzance, and Aura Pentagon City, a 534-unit apartment community to be renamed Cortland Pentagon City. Aubrey, a trophy asset that Penzance developed in partnership with The Baupost Group LLC, will be rebranded Cortland Rosslyn. The remaining two assets in Arlington are expected to close soon.
The 23-story Cortland Rosslyn is located at 1788 North Pierce St. and was completed in 2021. Each unit has citywide views of Rosslyn and the D.C. skyline with some apartments featuring sculptural balconies. All residences feature chef-style kitchens, state-of-the-art appliances including washer-dryers in all units, luxury finishes and flexible spaces to fits residents’ needs. The rooftop amenities include a penthouse-level pool and sun deck as well as an indoor craft beer lounge and billiards space. Other amenities include an exhibition kitchen, coworking hall, a winery-inspired clubroom and lounge, fitness center, 24-hour concierge, garage parking and onsite storage. The building also has on-site storage and a CVS on the ground floor.
Units have one-, two- and three-bedroom floorplans and range in size from 630 square feet to 1,689 square feet, according to Yardi Matrix data.
Christine Espenshade and Robert Garrish of Newmark represented Penzance in the sale of the LEED Gold-Certified property.
Located in the Rosslyn-Ballston Corridor, The Highlands is a mixed-use project and is also home to two other luxury rental towers—Pierce and Evo.
Cortland Pentagon City
Located at 1221 South Eads St., Cortland Pentagon City is located across the street from Amazon HQ2 in National Landing and has views of the planned Helix Tower. Pentagon City is a premier mixed-use urban community with offices, apartment buildings, restaurants, shops, parks, hotels, cultural venues and walking trails.
Cortland Pentagon City. Image courtesy of Cortland
Built in two phases completed in 2000 and 2003, the asset consists of two buildings, one with 14 stories and the second with 18. The most recent owner was Polinger Co., according to Yardi Matrix. Polinger bought the property in May 2019 for $228 million from Paradigm Development, Yardi Matrix reported.
The residences have washer/dryers in all unit and fireplaces in select units. Community amenities include a fitness center, business center, business center, clubhouse and two swimming pools as well as 643 parking spaces. Additional storage is available for a separate fee. The units range in size from 519 square feet to 1,220 square feet and feature studio, one- and two-bedroom floorplans, according to Yardi Matrix.
Dan Irvin, director of investments at Cortland, said in a prepared statement the company’s value-add capabilities will allow Cortland to modernize Cortland Pentagon City to go along with the grand vision that others have for National Landing. He called the properties “generational assets” and said the Arlington assets offer diversity to Cortland’s Sun Belt portfolio.
