PALO ALTO, CA - Multifamily owner-operator and investment manager Pacific Urban Investors (“Pacific”) has acquired three properties totaling 795 units with a total consideration of $270 Million during its first year of operations in the Mid-Atlantic. This includes two assets located in Arlington and Fairfax, Virginia, as well as another located in Gaithersburg, Maryland. Pacific’s East Coast expansion focused initially on the New York Metro and Boston markets before Matt Lederer led efforts to expand its footprint late last year, relocating to open an office in Washington, DC.
“We are excited to bring our institutional capital relationships and longstanding track record in the multifamily space to the Mid-Atlantic for both value-add repositioning and long-term core ownership. These properties are a complement to our growing Eastern U.S. portfolio. We fully expect these to be the first of many in the Mid-Atlantic and are excited for a productive 2023” said Matt Lederer, Vice President of Investments at Pacific.
Pacific’s investments over the past year in the Mid-Atlantic include two communities in Virginia, consisting of the 234-unit 55 Hundred in Arlington and the 246-unit Bell Fair Oaks in Fairfax. Both communities are well-located in desirable Northern Virginia areas proximate to employment, restaurants, and shopping. 55 Hundred is three and a half miles from employment in National Landing, including the upcoming Amazon HQ2. Bell Fair Oaks is well-positioned in the epicenter of Fairfax County with over 1.1M jobs in a 10-mile radius and surrounded by over three million square feet of high-end and well-occupied retail, much of it walkable from the property. In Maryland, Pacific acquired 17 Barkley, 315-units located on State Route 355 in Gaithersburg near the well amenitized Downtown Crown offering residents direct access to Interstate 270, known as DNA Alley which is home to over 350 life science companies and over 370,000 employees. All three communities were acquired from Sellers whom Pacific has transacted with before.
“The investments in Virginia and Maryland are long-term additions in core locations with steady demand that fit squarely within Pacific’s investment thesis: vintage lower-density communities in core locations proximate to significant employment and lifestyle amenities at a significant value proposition for residents as compared to more recent deliveries and home ownership. While 2022 was a challenging year for many investors given turbulence in the capital markets and rapidly shifting valuations, our strong capitalization and lower leverage allowed us to participate and obtain compelling economics at a time when many investors moved to the sidelines,” said John Fluke, Direct of Investments at Pacific. “Our forward-looking outlook is very positive for these acquisitions as well as continued investment in the area as we continue to see return-to-work, employers expand their footprint, and a forecasted reduction in new supply in light of construction cost, availability of land, and transaction pricing as compared to build cost.”
About Pacific Urban Investors: The Palo Alto, CA-based company has over $8.3 Billion in assets under management and owns and manages a national portfolio of more than 19,700 units. The firm and its partners have decades of experience in apartment investments, both repositioning and ‘re-manufacturing’ multifamily assets and their income streams to their optimal, core potential. Pacific has progressed over time to become a best-in-class owner, operator and asset manager in the multifamily space, serving as a fiduciary for its own partner capital as well as its strategic partnerships with institutional pension funds and other sophisticated investors. Pacific is actively acquiring multifamily assets as a principal and providing both co-investment and preferred equity for development, acquisition, and recapitalization. For more information, please visit www.pacificurbaninvestors.com