Alexandria, Va.—A joint venture of real estate crowdfunding platform Fundrise and Arlington, Va.-based Insight Property Group have acquired their second and third properties as part of a plan to invest $200 million annually in Washington, D.C.-area multifamily assets.
In a $57.9 million deal, Insight and Fundrise affiliate RSE Capital acquired the two northern Virginia Class B properties, which are located outside the 8,500-acre Fort Belvoir military base.
The JV spent $37. 8 million on Sacramento Square Apartments, a 216-unit community located at 5401 Claymont Drive in Alexandria, and shelled out $20.2 million for Lancaster Mill, a 138-unit property at 13940 Longwood Manor Court in Woodbridge.
“These properties present an excellent value-add opportunity for Insight and RSE,” said Dean Sigmon, co-director of Transwestern’s Mid-Atlantic Multifamily Group, who represented the seller. “These buildings are solidly constructed and well-positioned for a substantial increase in rental revenue through in-unit renovations and exterior cosmetic enhancements.”
The two properties were built in the 1980s and had been virtually untouched since their construction, Sigmon told MHN. The JV plans to invest more than $7 million to upgrade the units and common areas at the communities. Fairfax-based Gates Hudson will manage both properties.
Robin Williams, co-director of Transwestern’s Mid-Atlantic Multifamily Group, also represented the seller. While the seller was not disclosed, Sigmon said it was a private developer.
The partnership completed its first acquisition in June, with the $9.7 million purchase of Canterbury Square Apartments at 9186 Richmond Highway in Richmond, Va.
“The outlook for Northern Virginia remains very positive with continued job growth, rent growth and strong occupancies,” Sigmon said.