American University Portfolio
Following the University’s vacation of the properties (projected to commence Q3 2016), the partnership plans to convert two of the three buildings to Class A market rate rental apartments, attractive to both students and non-students alike. The third building is being studied for a similar use, but may represent entirely new construction versus renovation and repositioning.
Offering significant on-site parking, a walkable community with Whole Foods, Panera, Starbucks, Best Buy, The Container Store, and other retailers, the venture will be delivering Class A apartments to a submarket which has had fewer than 100 new units delivered in the past decade.
The institutional financial partners include a real-estate focused private equity fund which is a long-standing partner of co-sponsor Urban Investment Partners, as well as a top quartile hedge fund.
Acquired in 2015 from a local family which, due to long term ownership, may have lost some perspective as to the property’s potential value given its Connecticut Avenue address and location adjacent to the Kuwaiti Embassy.
Extensive capital improvements, including full unit renovation and the construction of additional apartment units.
The local operating partner, Urban Investment Partners, is a specialist in the renovation and repositioning of older apartment properties and offers extensive experience in all aspects of construction and property management.
The institutional partner is a family office investment manager headquartered in Bahrain.