Boston Properties, Home Properties Reduce D.C.-Area Apartment Portfolios
- Feb 09, 2015
By Adrian Maties, Associate Editor
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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