Real Estate

Hunting Point to See Upgrades, Higher Rents

The 530-unit apartment complex near Old Town's waterfront was purchased by an investment fund in concert with the Laramar Group.

Apartment complex Hunting Point has been acquired by investment fund Lubert-Adler Partners as part of a partnership with realty group Laramar Group, which announced its purchase of the property in late March.

Lubert-Adler plans to invest about $14 million in the 530-unit apartment complex over the next three years.

  • See: VDOT Sells Hunting Point to Chicago Firm

“In 2010, we made a strategic decision based on the belief that multifamily rental apartments provide one of the best opportunities to create risk-adjusted superior returns…,” Lubert-Adler CEO Dean Adler said in a statement.

Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.

Adler noted Hunting Point’s “superior location” on the waterfront just south of downtown Alexandria and its rents, which are currently about 40 percent below market rate.

“This was a flat tire that we can transform into a Class A apartment community,” Adler said in a statement.

Interested in local real estate?Subscribe to Patch's new newsletter to be the first to know about open houses, new listings and more.

Built in the 1940s, the two eight-story towers were constructed in a way preventing massive interior renovation, but Lubert-Adler does plan upgrades.

In partnership with Laramar, Lubert-Adler purchased the complex for $78 million or about $147,000 a unit from the Virginia Department of Transportation. VDOT acquired the property around 2002 to allow for construction of the Woodrow Wilson Bridge, which required that one of three towers at the complex be razed.

For more news about Alexandria, sign up for the Old Town Alexandria Patch daily email newsletter. Find out more here.

The new owners plan to make capital improvements such as new lobbies, corridors, rooftop entertainment areas, building systems, mechanical repairs, façade improvements and riverside pool amenities, according to a news release.

Individual apartments will be renovated with new kitchens, baths, windows, flooring and other upgrades.

Rents are expected to be higher after renovations, according to a source familiar with the deal. It's not clear at this time whether current renters will enjoy their current rental rate or if higher rents will only apply to new renters.

City Council passed a resolution in May 2012 highlighting the city's commitment to preserving affordable housing in the complex.

  • See: Council Adopts Hunting Towers Resolution

VDOT's state right of way and utilities director, Richard Bennett, told Patch in March that Laramar was "made aware" of the council resolution, but it was not specifically cited in the sale agreement.

Lubert-Adler has a multifamily housing portfolio valued at about $2 billion—most of it amassed during the last 18 months.

For the quickest updates about Alexandria, Like Old Town Alexandria Patch on Facebook and Follow @alexandriapatch on Twitter.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here