JV Closes on $228M Community Near Amazon HQ2
- May 15, 2019
A joint venture between Polinger Development Co. and an unnamed institutional investor has purchased Meridian at Pentagon City, a 534-unit residential community in Arlington, Va., for $228 million. The partnership acquired the two-tower property from a joint venture between Paradigm Cos. and a fund advised by UBS.
The new ownership also secured $126.9 million in fixed-rate financing for the property through MetLife Investment Management. An HFF investment advisory team of Walter Coker, Brian Crivella, Stephen Conley and Matthew Lawton represented the seller in the deal, while an HFF debt placement team led by Jamie Leachman represented the new owners in the acquisition financing.
“The announcement of Amazon’s HQ2 across the street generated a tremendous amount of buzz and furthered an already compelling opportunity, enhancing the upside potential via a value-add, in-unit and common area improvement strategy, which ultimately drove investor interest and pricing,” Managing Director Coker told Multi-Housing News.
Meridian at Pentagon City is located at 1221 and 1331 S. Eads St., close to Amazon’s planned 4.1 million-square-foot Crystal City campus, the Pentagon and half-a-mile from the Crystal City metro station. The community is comprised of two residential towers housing a mix of studio, one- and two-bedroom units with an average size of 846 square feet. The property is also located down the street from a Whole Foods Market, Metropolitan Park and several shopping and dining options including the Pentagon Centre shopping mall.
The community offers resident amenities including two rooftop pools, two terraces with grilling areas, a clubroom, fitness facility, dog park, business center, guest suite accommodations, concierge service and a 24-hour front desk.
The Washington, D.C. multifamily market has maintained a strong supply of product while job growth during the second half of 2018 led to a 2.8 percent rent growth year-over-year, according to a Yardi Matrix report.