Principal Pays $75M For New M-F Asset in Petworth
- Jul 24, 2014
Principal Real Estate Investors is expanding its portfolio of properties on the East Cost. The Des Moines, Iowa-based company paid $75 million to acquire the Swift Apartments, a new Class A multi-family community located at 3828 Georgia Avenue NW in Washington, D.C.’s Petworth neighborhood.
Cassidy Turley represented the seller, an affiliate of Duball L.L.C. The Cassidy Turley team consisted of Managing Director Christopher Doerr, Vice Chairman Bill Collins and Vice Chairman Paul Collins. “Petworth has become one of the trendiest neighborhoods in Washington, D.C.,” Doerr said in a statement.
Duball is now putting the finishing touches on the development. Buvermo provided institutional equity and Eagle Bank the third party construction lender for the project.
Swift Apartments will feature 218 studio, one- and two-bedroom units, as well as a 64,000-square-foot Safeway store on the ground floor. Other amenities include a 9,200-square-foot rooftop with grilling areas, an open-air courtyard, state-of-the-art fitness center, two-story lobby and a modern club room. The project will be a candidate for LEED Silver certification.
According to Marcus & Millichap Real Estate Investment Services Inc.’s recent local market report, multi-family transaction velocity increased 14% during the most recent 12-month period. The largest increase in deal flow was recorded in the District itself, where the average price was $148,200 per unit. The Swift Apartments changed hands for about $344,000 per unit.
Although the region’s overall vacancy is on the rise, due to new completions and a disappointing employment market, newer buildings are well received. Vacancy at buildings constructed since 2000 decreased to 5.8%. And operators of these properties also reduced rents to $1,887 per month in the first quarter of the year, a decline of 2.9% year-over-year.Rendering courtesy of Cassidy Turley. Charts courtesy of Marcus & Millichap.