Discretionary Multifamily Fund Provides Opportunity in Challenging Economic Landscape
Washington, DC (April 17, 2024) – Bozzuto announced today the acquisition of Gables 12 Twenty-One in Rosslyn. The deal was acquired through Bozzuto’s discretionary Multifamily Fund, raised in 2022. Newly renamed The Alcott, the 132-unit boutique community is within walking distance of the Rosslyn-Ballston Corridor and conveniently located near metro connectivity to Amazon’s HQ2 and the Virginia Tech Innovation campus. Rooted in the Mid-Atlantic, this acquisition perfectly complements the existing Bozzuto portfolio and operating expertise.
This transaction is part of a wider effort by Bozzuto to acquire more high-quality, stabilized assets across the East Coast. Berkadia served as broker for the transaction and arranged acquisition financing through Freddie Mac. Bozzuto Management Company will serve as property manager of this new community, adding to their 100,000 + unit portfolio nationwide.
“Current macroeconomic conditions make the production of new housing extremely difficult. Concurrently, the demand for housing is stronger than ever. As such, this is an opportune time for us to purchase The Alcott at a price that is below the cost to build new. We look forward to creating a sanctuary for our residents through excellent service. We also hope that they will be delighted by the upgrades we make to the community,” said President and CEO Toby Bozzuto.
Bozzuto plans to renovate The Alcott, which is currently 96% occupied, including upgrading amenity spaces and furniture, re-painting and upgrading fixtures throughout the community, as well as new programming for residents.
“Part of our goal for the fund was to find a value-add property built after 2000. This property was developed and managed by Gables Residential, a firm we respect highly, and is in great condition under their stewardship. However, we feel there is some ability to update the finishes in the units, amenity areas, and corridors to a more modern standard. We will be renovating those areas to enhance the resident experience accordingly,” said Brad Coker, Bozzuto Senior Vice President of Acquisitions, Asset Management and Private Equity.
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