Partners Acquire D.C. Mixed-Use Property for $26M
- Apr 18, 2012
Washington, D.C.—Urban Investment Partners (UIP) and Infinity Real Estate (IRE) have acquired a 114-unit apartment building at 1841 Columbia Road, NW in Washington, D.C., formerly known as the Alcazar, for $26 million. The seller was Fairfield Residential Co., with Arbor Commercial Mortgage of New York providing the acquisition and project debt financing for the venture.
The building is a pre-war, mixed-use property in the D.C. neighborhood of Adams Morgan. Besides the residential space, it also features 20,000 square feet of prime neighborhood retail space. Current retail tenants include Napoleon Bistro, Bedrock Billiards, Gary Taylor Framing, Bank of America and Fleet Feet, which specializes in athletic gear and is owned by Shawn Fenty, brother of former DC Mayor Adrian M. Fenty.
The partners plan to invest more than $7 million on a comprehensive building renovation. Plans for the modernization program call for complete window and retail storefront replacement, installation of a green water-sourced heating and cooling system, redesigned common areas, and a rooftop terrace the new owners are calling one of the largest in the District.
Current residents will see no rent increase beyond the standard annual CPI-based increase specified by DC rent control law, according to UIP principal Steve Schwat. UIP General Contracting Inc., a subsidiary of UIP, will perform the renovation work, which is expected to be completed by this December. UIP subsidiary UIP Property Management Inc. has assumed management of the building.
Washington-based UIP specializes in local properties. Since its founding in 2001, UIP principals have sponsored real estate funds throughout the metro area with a total valuation of over $375 million. New York-based IRE currently owns about 50 commercial properties and development projects in 13 states.