WRIT acquires The Paramount in Virginia for USD48.2m
Washington Real Estate Investment Trust (WRIT) has acquired The Paramount, an apartment building with 135 units and 3,600 square feet of retail space.
The building is located in Arlington, Virginia and was purchased for USD48.2m in an all cash transaction.
The purchase price values the units at approximately USD345,000 per unit, based on an average unit size of 1,015 square feet. The capitalisation rate for the transaction is estimated to be 5.2 per cent.
The Paramount is a 17-story building with a two-level below grade parking garage, located at 1425 South Eads Street and is within walking distance to both the Crystal City and Pentagon City Metro Stations (Blue and Yellow Lines). The property was built in 1984 and is 94 per cent occupied.
"The Paramount is a recently renovated apartment building, with easy access to the area's major employment centres. The property's close proximity to metro and the Pentagon align with our long-term strategy of focusing our investments in dense, infill locations with strong access to transportation and solid demographics," says Ed Murn (pictured), managing director and head of the residential division at WRIT.
WRIT initially funded the acquisition with available capacity on its line of credit. With the recent announcement of the Medical Office Portfolio sale, WRIT will have the ability to repay the outstanding line balance with sale proceeds.