Boston Properties, Home Properties Reduce D.C.-Area Apartment Portfolios

Investors continue to show a lot of interest in the Washington, D.C. apartment market. Last week, it was revealed that three more apartment communities in the area have changed hands this winter or are under contract to change hands.

By Adrian Maties, Associate Editor

The Residences on The Avenue

Two big apartment owners found buyers for Washington, D.C.-area apartment properties, an indication of investors’ continued interest in the market.

Boston Properties Inc. disclosed in its recently released quarterly earnings statement that it reached a deal on Jan. 15 to sell The Residences on The Avenue in Foggy Bottom to an unnamed buyer. The sale price is $196 million. The Boston-based real estate investment trust also said it has agreed to provide net operating income support of as much as $6 million should the property’s net operating income fail to achieve certain thresholds.

The Residences on The Avenue offers 335 studio, one- and two-bedroom apartments. It also includes approximately 50,000 square feet of retail space, with Whole Foods among its tenants. The project was developed under a ground lease with George Washington University that expires on Feb. 1, 2068.

Rochester, N.Y.-based Home Properties Inc. is also reducing its D.C. footprint. In December, the company sold two of its apartment communities in Silver Spring. They are the 228-unit Woodleaf Apartments and the 435-unit Manor Apartments.

Home Properties also announced the sale of the 672-unit New Colonies apartment community in Steger, Ill. The company said it received $157 million for the three properties.

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