Passco Nabs Core Multifamily Community Near Nation’s Capital
- Mar 11, 2016
Alexandria, Va.—The Shelby, a 240-unit core multifamily community in the Washington, D.C., area, has a new owner. Passco Cos. LLC acquired the Class A property, which was completed in 2014, for $69.5 million from Insight Properties.
“The Washington, D.C., metro is an investor’s dream,” said Gary Goodman, senior vice president of acquisitions for Passco. “This area provides strong actual and anticipated job growth, high income levels, a dynamic infrastructure and a highly educated workforce, all of which will continue to drive demand for The Shelby over time.”
He added that The Shelby is in a prime location as the capital leads the country in jobs per capita, with the expectation for an additional 43,800 jobs per year though 2018. The property, located at 6200 North Kings Highway, is also within a half-mile radius of the Huntington metro station, where other developers have also set their eye on building multifamily.
“The tremendous ongoing growth throughout the region, coupled with the apartment community’s close proximity to major transit and employment hubs will continue to increase property value and drive up market rents over time,” Goodman said. “The result will be increased long-term cash flow and stronger returns.”
The Shelby’s target demographic is Millennials, according to Goodman, with more than 57 percent of current residents being under age 30. To bring in the area’s culture, the community is adorned with more than 100 pieces of original art from locally commissioned artists.
The community is also located near retail and lifestyle centers, addressing the need for central metro-oriented housing in the area that will also allow for strong rent growth at the property. Local attractions include Beacon Center, Hoffman Town Center, Kingstowne Towne Center, Potomac Yard Center, the National Harbor and the Fashion Centre at Pentagon City.
ARA Newmark Senior Managing Director Ryan Ogden represented Passco and Insight Properties in the transaction. Financing was provided by Fannie Mae’s Green Building Program through Chris Black at KeyBank Real Estate Capital.
Photos courtesy of Brower Miller Cole