By Adrian Maties, Associate Editor
Home Properties Inc. has paid $205 million for the Newport Village in Alexandria, Va., making it the largest acquisition in the company’s history in terms of price paid for an asset. The apartment community was purchased on Oct. 17.
Newport Village was built in 1969. It is located on both sides of West Braddock Road and North Beauregard Street, one half mile to I-395, making it easily accessible to several Metro stations and Reagan National Airport. The property consists of 937 units in 31 garden-style buildings. There are 443 one-bedroom units, 432 two-bedroom units, 20 three-bedroom units and 42 three-bedroom townhouses, with an average unit size of 1,061 square feet.
The buildings have all-brick facades, arched entryways, decorative cornices and portal windows. Roofs are pitched with asphalt shingles. Home Properties paid approximately $219,000 per apartment unit. As of Aug. 3, the property was 92.3 percent leased, with monthly rents averaging $1,561.
The Rochester, N.Y.-based company expects to spend approximately $17 million during the first four years of ownership. The investment will be used to upgrade units upon turnover. New upgrades will include new kitchen cabinets, countertops and appliances, with washers and dryers added in units that currently lack them. The central heating system will also be replaced. Individually metered high-efficiency furnaces will be placed in each apartment.
Home Properties is a multifamily real estate investment trust. It owns, operates, develops, acquires and rehabilitates apartment communities, with operations primarily along the East Coast of the United States. Currently, Home Properties owns and operates 119 communities containing 40,240 apartment units. Recently, it paid $90.4 million in cash for the Apartments at Cambridge Court, a White Marsh apartment complex.