UIP Cos., Churchill Living Buy Virginia Community for $200M
The property is near Amazon’s HQ2 in Arlington.
The UIP Cos. and Churchill Living have acquired a 300-unit community in Arlington, Va., looking to benefit from the expected growth that Amazon’s HQ2 will bring to the area. An affiliate of UIP and an affiliate of Churchill Living acquired The Millennium from Clarion Partners, who was represented by CBRE’s Bill Roohan, for $200.5 million, according to public records.
UIP raised $78 million for the acquisition, some of which was raised through the crowdfunding platform CrowdStreet, while KKR Real Estate Finance placed a $135 million first trust mortgage on The Millennium.
The 19-story community was built more than 12 years ago, several years before Amazon announced it would construct its second headquarters in Arlington. The Millennium offers studios, one-, two- and three-bedroom units and also was built with an 11,000-square-foot clubroom, rooftop pool, salon, fitness center, outdoor patio, residents’ lounge, library, business center, bike storage and guest suites. Peter Bonnell, principal at UIP, told Multi-Housing News that the community is 95 percent occupied.
Located at 1330 S. Fair St., The Millennium is located directly across the two-acre Metropolitan Park, which Amazon is spending $14 million to renovate. Amazon is also currently working on its two main headquarters office buildings nearby, which is expected to offer retail space on its ground floors.
According to UIP, Amazon’s HQ2 is expected to have 25,000 employees by 2030, who are expected to create more direct and indirect jobs by 2035. UIP is expecting this influx of workers to increase the demand for housing and other services in the area. Developers are also expecting more growth in the area and have started construction on several nearby residential projects.
$9 MILLION RENOVATIONS
Being located near Amazon’s HQ2, UIP has several plans for The Millennium so that it can take advantage of the upcoming development. The new ownership will convert the current street-level lobby and office space into 5,000 square feet of retail space that will be operated by an upscale restaurant. The restaurant tenant is expected to create an indoor/outdoor café and dining amenity that faces Metropolitan Park, adding to the long list of amenities already offered at the community.
As for The Millennium’s residential portion, UIP is planning a $9 million renovation of its common areas and apartments. Steve Schwat, founding principal at UIP, said in prepared remarks that the units will be upgraded with improved kitchens, spa-like bathrooms with Bluetooth-enabled lighted medicine cabinets, under cabinet lighting, tiled back splash walls, customizable closets, electric roller blinds and more.
Bonnell also told MHN that the unit renovations will take place as apartment leases turn over naturally, which could take up to three years. He also told MHN that the street-level renovations are planned for completion by this summer.
UIP has also put its management division, UIP Property Management, in charge of managing The Millennium. Over time, Churchill Living will also take up to 150 apartments in the community to be used as temporary housing for its government and private-sector clients.