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R EAL E STATE J OURNAL the most comprehensive source for commercial real estate news

ISSUE HIGHLIGHTS Volume 25 Issue 3 FEBRUARY 8 - 21, 2013 22nd Annual Merit Construction Awards of Excellence

Fund has capacity to invest over $500 million in DC, Maryland, Virginia The Meridian Group closes real estate fund with over $160 million to invest

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ETHESDA, MD —De- spite a troubled econo- my and uncertainty in

on real estate in the Washing- ton metropolitan area. “We are delighted to have this discretionary fund that enables us to capitalize on the attractive investment opportunities that we are seeing in our market as a re- sult of the slow economy, soft market conditions and low interest rates,” said David Cheek , president of Merid- ian. “We believe that it is a good time in the cycle to se- lectively invest inWashington real estate, and we expect to achieve our targeted returns as the market improves over the next several years and beyond.” With the new fund, Merid- ian already has completed three office acquisitions, to- taling 572,000 s/f, and a loan purchase, all in Northern Vir- ginia. The office acquisitions include One Ballston Plaza (148,000 s/f) in Arlington,

Cameron Run (144,000 s/f) in Alexandria, and Tysons Technology Center (280,000 s/f) in Tysons Corner. All of these buildings were approximately 75 percent leased at acquisition, and Meridian plans to add value through leasing the vacant space and repositioning and stabilizing the assets. In addition, Meridian is also currently working on several other transactions. “We are very proud to have completed one of the few first discretionary real estate funds raised in the U.S. since the financial crisis in 2008,” said Gary Block , managing director of Meridian. “Our proven track record, invest- ment strategy and capabili- ties, along with the long-term strength of the Washington real estate market, attracted our investors, and we appre- ciate their confidence in us.”

“Our investment strategy is focused on well-located, institutional quality assets near Metro rail, major high- ways and walkable ameni- ties in submarkets such as Arlington, Alexandria, Tysons Corner, Reston, Bethesda, Chevy Chase, Rockville and Washington, DC,” said Bruce Lane , executive vice presi- dent and managing director of Meridian. “These are all places where we can create value through repositioning assets, leasing vacant space, extending leases, renovations, redevelopment, new develop- ment, and rezoning and sell- ing land. “We have achieved excel- lent investment returns by doing all of this over a 20- year period and through five economic cycles now,” Lane said. “And we look forward to continuing this success with our new fund.” n

the real es- tate market, the Merid- ian Group has complet- ed the final closing on its first real es- tate private equity fund,

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David Cheek

Prism set to launch Edison Village

attracting more than $160 million of discretionary capi- tal from institutional inves- tors. With leverage, Meridian has the capacity to invest a total of over $500 million. Meridian also has an ad- ditional $160 million of avail- able co-investment capital committed from its limited partners on a deal-by-deal basis. The fund, Meridian Realty Partners I, is now one of the largest equity funds focused

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Property Mgmt. Featuring IREM Tri-State Conference & Expo

Tremont Realty Capital structures JV equity on $46 million Maryland apartment acquisition

Owings Mill, MD — The Boston office of Tremont Realty Capital arranged the joint venture equity for the $46 million purchase of the Falcon Crest Apart- ments. David Ross , managing director, arranged the JV

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Falcon Crest Apartments

equity, which was funded through a private invest- ment firm. The property was over 90% occupied at the time of closing. Amenities include a resi-

dent clubroom, fitness cen- ter, business center, and an outdoor swim club. Accord- ing to Ross, “The sponsor and investor were delighted to close on the Falcon Crest

transaction, further expand- ing the relationship Tremont arranged. This is the lat- est of multiple multifamily transactions they have done together.” n

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