AvalonBay (NYSE: AVB
) sold Crystal House, a 828-unit apartment complex in the Crystal City section of Arlington, VA, for $262.5 million or $317,000 per unit. Mack-Cali Realty Corp. (NYSE: CLI
), a real estate investment trust, purchased the asset in a joint venture with a fund advised by UBS Global Asset Management.
The sale price includes $197 million for the buildings and $65.5 million for land to develop an additional 295 units, according to CoStar Group information. Walker & Dunlop LLC provided a $165 million mortgage loan through a Fannie Mae program.
AvalonBay said it acquired Crystal House as part of its purchase of certain assets and assumption of certain liabilities of Archstone Enterprise LP (now known as Jupiter Enterprise LP) on February 27, 2013.
The multifamily property includes two 12-story towers with studios, one-, two- and three-bedroom units. The property is 95.7 percent leased and comes with garage and surface parking.
Mack-Cali hired its Roseland subsidiary to manage the community and oversee the upgrade of the unrented units to “designer” standards.
“The Mack Cali/Roseland team is thrilled to be entering the Metro DC market, one that offers enormous potential. When we’ve completed the renovation project, we are confident that we’ll be able to command rents at the highest end of the market,” said Mitchell E. Hersh, president and chief executive officer of Mack-Cali.
AvalonBay also traded the Avalon Decoverly, a 564-unit apartment community in Rockville, MD, for $135 million or $239,362 per unit. The buyer was undisclosed.
Built in 1995, the 368,732-square-foot, garden-style property is on 21 acres at 9901 Gable Ridge Terrace.
See CoStar COMPS #2704187 and #2704647 for more details.
Editor's note: The article was updated to reflect the Avalon Decoverly sale and the break down of Crystal House's sales price.