Grosvenor Americas has closed on Avalon Fair Oaks, a 491-unit apartment community in Fairfax, Virginia for USD108.2 million, its first Washington DC-area acquisition of a multifamily portfolio.
David Nachison and Alan Davis of HFF represented the seller in the transaction.
Property investor and developer Grosvenor has USD2.4b in assets under management and now owns (wholly or in joint venture partnerships) more than 2,850 multifamily rental units in the US and Canada; some 70 per cent of these units are located on the West Coast.
While this is Grosvenor’s first Washington, DC area apartment community acquisition, the company has been highly active in the local market. Grosvenor partnered with The JBG Companies in developing District, a boutique mixed-use development at 14th and S Streets, NW, which sold in late 2013 to J.P. Morgan for a record-setting price per unit. Grosvenor owns Square 701, adjacent to Nationals Park in the regenerating Capitol Riverfront District, where it has planned a mixed-use residential/retail development. In the heart of Silver Spring, Maryland, at 8415 Fenton Street, Grosvenor plans to develop 244 rental apartments and 18,000 square feet of ground-level retail space.
Grosvenor’s senior vice president and general manager Scott Brody says: “This acquisition expands our residential investment portfolio across the US. It fits well with our strategic objective to acquire value-add apartments in strong markets within the Washington, DC region, where we continue to seek additional opportunities.
“The Fair Oaks submarket attracts quality retailers with its affluent and growing population. Residents enjoy easy access to shopping including Fair Oaks Mall, Whole Foods, Wegmans and Fairfax Towne Center, as well as numerous employers including General Dynamics, Lockheed Martin, SAIC, AT&T, major Federal government agencies, and the more than 6,000 technology firms along the Dulles Corridor.”
The 27-year-old Avalon Fair Oaks community offers numerous amenities including a pool and sundeck, clubhouse with free Wi-Fi, picnic area, 24-hour fitness centre, tennis court, racquetball court, and structured parking. After renaming the community Wheelhouse of Fair Oaks, the new ownership plans to undertake significant renovations that include upgrades to interior home finishings, the fitness club, leasing office, and other public spaces.