Washington Real Estate Investment Trust is teaming up with the Trammell Crow Co. to develop a $95 million apartment complex in Old Town Alexandra as the Rockville-based investment trust looks to beef up its apartment portfolio in Greater Washington.
The 15-story, 270-unit high-rise at First and Fayette streets is less than a block from another apartment complex Trammell Crow was planning to develop with Equity Residential calling for 360 rental units.
Trammell Crow principal Campbell Smith said Equity purchased his company’s stake in that project earlier this year for undisclosed terms. But he noted Trammell Crow is bullish on the Northern Virginia neighborhood and excited about the prospect of teaming up with WRIT on the new project.
What’s more, Smith said: “We love Alexandria, we love the neighborhood, and we have for a long time.”
Smith said the venture with WRIT fits in well with his company’s current focus on building apartments in urban infill locations. The site is also close to the Braddock Metro Center, a 345,000-square-foot office campus WRIT acquired in September.
It’s the second new apartment complex in Northern Virginia for WRIT, which announced plans in June to build a $43.5 million, 150-unit apartment project with Crimson Partners by the Ballston Common Mall.
Trammell Crow and WRIT (NYSE: WRE) recently acquired the planned apartment site and plan to start construction in the fourth quarter of 2012. WRIT will contribute 95 percent toward the project’s costs, and Trammell Crow will contribute 5 percent as the project’s sponsor and developer. The project is expected to take two years to complete and the companies expect it could be stabilized by the first quarter of 2016.
Washington Real Estate Investment Trust and Trammell Crow Co. have formed a joint venture to develop a 15-story, 270-unit apartment building in Old Town Alexandria.