M id A tlantic Real Estate Journal —February 18 - March 17, 2022 — 3A
www.marej.com
The Zupancic Group facilitate sale of 30 building apartment community for $39.5 Million Marcus &Millichap arranges the largest multifamily property sale in SE Washington, DC since 2020
ALEXANDRIA, VIRGIN- IA — JLL Capital Markets has arranged $34.34 million in financing for the acquisition of The Mark, a 227-unit, mid- rise, value-add multi-housing community located in the Washington, D.C. community of Alexandria. JLL worked on behalf of the borrower, Washington Prop- erty Company , to secure a three-year, floating-rate, non-recourse, bridge loan with one-year extensions through MetLife Investment Man- agement . The Mark contains 34 un- renovated units, 90 partially renovated units and 103 fully renovated units. Unrenovated units offer granite counter- tops, white appliances, classic cabinetry and tile flooring ASHINGTON, DC — Marcus & Mil- lichap announced the sale of Stanton Glenn, a 379-unit apartment commu- nity spanning 30 buildings on 10.77 acres of land located at 3048 Stanton Rd. in Southeast Washington DC. The asset sold for $39.5 million at a cap rate of -2.91%, according to B rian Hosey , regional manager of the firm’s Washington, DC office. Based in Marcus & Millic- hap’s Washington, DC office, The Zupancic Group had the listing to market the prop- erty on behalf of the seller, Joe Kisha , president of Castle Management Corp . The buyer was Concord Commu- nities , an affordable housing owner and developer. Concord Communities is a wholly- owned subsidiary of Lowe En- terprises, a multibillion-dollar national real estate investor. Kisha has been a successful real estate developer in Wash- ington, DC for over 30 years. “I have provided affordable housing in DC throughout the last several decades. Since I purchased Stanton Glenn from its original developer, and former president of the DC Chamber of Commerce, Mar- garet Stewart , I have wit- W
affordable housing properties. “During our recent marketing of Stanton Glenn and Capitol Park Plaza & Twins – a 648- unit Low Income Housing Tax Credit (LIHTC) deal in Southwest DC – we witnessed an influx of capital chasing affordable deals throughout DC,” said Eric Jentoft-Herr , investment associate inMarcus &Millichap’s Washington D.C. office. “We expect to see a con - tinuation of this trend as the demand for affordable housing continues to outpace supply.” In 2021 alone, Amazon launched a $2 billion Hous- ing Equity Fund to create over 20,000 affordable homes; Avanath raised $750 million for its fourth United States affordable housing fund; Fairstead committed an ad- ditional $500 million to their affordable housing strategy; and JBG Smith closed its af- fordable housing fund at $255 million. * With the acquisition of Stanton Glenn, Concord Communities was able to deploy capital, expand its affordable housing portfolio and preserve hundreds of af- fordable housing units. * https://www.multihousingnews. com/fairstead-commits-500m-to-af- fordable-housing-strategy/ MAREJ
Stanton Glenn
nessed the market’s dramatic transformation firsthand. I am very excited to see how it continues to evolve as its most recent phase of redevelopment nears completion and new projects break ground,” he said. Concord Communities will contribute to the market’s transformation by investing over $18 million in Stanton Glenn for capital improve- ments. The firm’s renova- tions of the spacious property – which boasts an average of 1,015 s/f per unit – will com- mence later this year. The renovations will include new flooring, cabinets and ap - pliances, and more efficient HVAC systems, plumbing and lighting fixtures. Additionally,
the firm will refresh the prop - erty’s building exteriors, add new roofing and potentially install solar panels. At clos- ing, Stanton Glenn was only 71.5% occupied, with 108 of its 379 units vacant, giving Concord Communities the opportunity to quickly bring over 100 units of affordable housing back online. The Zupancic Group’s sale of Stanton Glennmarks the larg- est multifamily transaction in Southeast Washington, D.C.’s submarket since 2020, when the Group sold Forest Ridge - The Vistas Apartments for $58,733,350. Over the last de- cade, the Group has marketed over 150 multifamily build- ings in the submarket, with
59 of those buildings marketed within the last 18 months. “During our two decades of working in the ‘East of the River’ submarket, there has been a substantial amount of major developments in the area, such as St. Elizabeth’s East, Skyland Town Center and Barry Farms,” said Marty Zupancic , a senior vice presi- dent of investments in Marcus & Millichap’s DC office. “These developments will make the preservation of affordable hous- ing in the area even more of a priority, and our team is excited to continue to play a part.” The Stanton Glenn sale also mirrors the current trend of institutional investors raising significant funds to acquire patio and fire pit, a lobby with a coffee bar and commuter tran- sit screen, a state-of-the-art fitness center with a private fitness studio, a 24-hour dry cleaning and laundry service, a business center with flexible work-from-home stations, a club room with an expansive bar and a game room. Situated between I-495 and Duke St. at 100 S. Reynolds St., The Mark offers residents quick access to major employ- ment hubs such as downtown Alexandria, Arlington and Washington, D.C. Providing several transportation options for residents, the property is 1.4 miles from the Van Dorn Metro Station, four metro stops to Ronald Reagan Wash- ington National Airport and one metro stop from the King
JLL arranges acquisition financing for The Mark in VA
Street Old Town Metro stop, which also serves as a station for Amtrak and VRE. The com- munity is also just 6.5 miles fromVirginia Tech’s new Inno- vation Campus and four metro stops from the headquarters of a global e-commerce giant. The location is proximate to several retail options at Bailey’s Cross- roads, Alexandria Commons, Carlyle Plaza and Hoffman Town Center. Additionally, The Mark is a 0.5-mile walk to Landmark Mall Redevelop- ment, which, when completed, will consist of a 4.2 million s/f mixed-use project anchored by Inova Health System hospital. The JLLCapital Markets Debt Advisory team representing the borrower was led by senior direc- tor Jimmy Conley and director Drake Greer . MAREJ
The Mark
in kitchens and bathrooms. Fully renovated units include granite countertops, stainless steel appliances, modern cabi- netry and hardwood flooring
in kitchens and living rooms. The property’s amenities in- clude a swimming pool with an outdoor sundeck, an outdoor lounge and terrace, a grilling
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