RESTON, VA. Jan/ 10, 2010---Crossbeam Capital LLC of Bethesda, Md. has entered the Northern Virginia market by acquiring the 200-unit Reston Glen Apartments (top left photo) in Reston, VA.
Crossbeam purchased the10- acre garden rental community from Redstone Partners of New York for an undisclosed amount through its Workforce Housing Fund I
Reston Glen was the fifth multifamily property totaling 1200 rental apartments acquired in December, 2010 alone by Crossbeam Capital and its affiliated partner, Concierge Asset Management of Houston.
Together, Crossbeam/Concierge, through their national acquisitions program, closed on eight apartment communities in 2010 ranging from Evanston, IL to San Antonio, North Austin and North Dallas to Reston, a Washington D.C. suburb favored by high technology companies and government contractors.
“This purchase presents an excellent opportunity to complete the repositioning and redevelopment strategy of Reston Glen that began before the economic downturn,” said Reggie Samuel (middle right photo), director of acquisitions for Crossbeam Capital.
He further said with the economy starting to grow in the DC metro area again, the $3 million which was invested into the substantial renovation of the apartment community in the two years prior to Crossbeam’s ownership is now starting to pay dividends.
The property is currently 99% occupied and exhibiting strong rent growth trends.
Brad Blash (middle left photo), Crossbeam Capital’s chief acquisitions officer, added that Reston Glen’s proximity to major employers plus the “transit element” of the transaction “fits squarely within our Workforce Housing Fund’s mandates.”
As the Metro’s new Silver Line from downtown Washington D.C. extends to Washington Dulles Airport, the Reston Metro stop will be located within two miles of the property and is anticipated to be completed in 2016, he said.
Andy Boyer and Jonathan Greenberg of CB Richard Ellis represented Redstone in marketing Reston Glen.
“We’ve known Reggie since his EQR days and we were comfortable he and his Crossbeam team were the right buyers and could meet our client’s emphasis on surety of close,” said Boyer, executive vice president for CB Richard Ellis.
Boyer credited Crossbeam for its quick response in working with the brokers and lender to ensure the “smooth, efficient closing.”
Samuel said the transaction gave Crossbeam entrée into one of the nation’s most resilient and strategically located markets and secure the asset at a price “substantially below” the original redeveloper’s cost.
Maury Zanoff and Matt Williams of CBRE Capital Markets’ Washington, DC office arranged the permanent financing through Freddie Mac.
The 200-unit garden style apartment community, located at 12265 Laurel Glade Court, was built in 1974 and fully renovated in 2008.
The new owners will invest additional capital into common area upgrades at the property including an Internet Café in the clubhouse, landscaping, signage enhancements and leasing office redesign. Large gas grills, an outdoor fireplace, and a shade pergola will be installed within a new barbeque/picnic area situated adjacent to the Reston Community Association’s biking/jogging trail that runs through the property.
Crossbeam’s strategic partner, Concierge Management Services, will manage the apartment community and renovation.
Summed up Samuel: ”Crossbeam/Concierge has the capital and the track record for smooth, efficient, timely closes and is poised to complete considerably more acquisitions in 2011 of multi-family properties that need redevelopment and disciplined financial and operational transformations.”
