Arlington, Va.—Mack-Cali Realty Corp. has acquired an 828-unit multifamily property, Crystal House, in the Crystal City section of Arlington, Va., for about $262.5 million. The acquisition was made in partnership with a fund advised by UBS Global Asset Management.
The acquisition includes land to accommodate the development of 295 or so additional units, 252 of which are currently approved. To facilitate the deal, Mack-Cali obtained a $165 million mortgage loan from Walker & Dunlop LLC under Fannie Mae’s DUS program.
Crystal House, which is 95.7 percent leased, was acquired from Avalon Bay, which acquired the property in the Archstone deal. The property currently consists of two 12-story towers with garage and surface parking, and the units are a mix of studios and one-, two- and three-bedroom apartments. Amenities include a rooftop fitness center and sky deck, Olympic-sized swimming pool, concierge service and on-site retail.
Mack-Cali’s Roseland subsidiary will manage the property and oversee the renovation of the unrented units to “designer” standards, according to the company. Once the renovations are complete, the property ought to be able to “command rents at the highest end of the market,” notes Mack-Cali CEO Mitchell E. Hersh.
The deal marks the second major multifamily acquisition this year for the Edison, NJ-based REIT. In January, the company bought 722 rental units in the master-planned community of Overlook Ridge in Revere and Malden, Mass., from a Prudential Insurance Co. joint venture for $150 million. All together, the company owns approximately 2,900 apartment units, all in the Northeast.