Baar-Zug, 7 December 2012
Partners Group, the global private markets manager, has invested on behalf of its clients in the acquisition of a multifamily property in the Washington, DC metro area, which is one of the strongest apartment markets in the US.
The property is 93% occupied and benefits from a number of upgrades completed over the last six years, including new roofs, new windows, masonry repairs, major systems upgrades and improvements in 391 units that include new kitchens and bathrooms. In addition, the property benefits from larger unit sizes than the market average and is already considered a higher quality asset than many of the comparable properties in the submarket. The business plan consists of renovating the common areas and updating the remaining 183 dated units which provides the potential for achieving higher rents and improved occupancy.
Mark Degner, Managing Director in the private real estate team at Partners Group, comments: "We are very excited to have invested in this attractive opportunity for our clients. The investment provides significant upside potential driven by rent uplifts from renovations and the current in-place rents being below market. The property includes characteristics which we favor based on our current relative value assessment: quality real estate with value-added opportunities and strong market fundamentals. We are also pleased to again be working with our operating partner, Bainbridge Companies, who has been investing in value-added apartment properties since the early 1990s."