WORLD PROPERTY CHANNEL ®

Riverside Station Apts., Woodbridge, VA.

The sale of five-year-old Riverside Station Apartments this week in the Washington, DC suburb of Woodbridge, VA proves again that older multifamily properties hold their value if properly maintained.

Cleveland-based Associated Estates Realty Corp. paid Omaha, NE-based Principal Global Investors $54.3 million or $178,618 per unit for the 304-unit, 95-percent leased, Class A asset two miles east of Interstate 95.

D.C. construction industry sources estimate the property was probably constructed in 2005 for about $200,000 per unit.

Principal didn't disclose why it was selling the property at this time.  Associates purchased Riverside Station on a free and clear basis. Average rents are $1,470 per month.

The property is located at 1411 Big Crest Lane overlooking the Potomac River, 20 miles south of D.C.

The Washington, D.C. office of Holliday Fenoglio Fowler (HFF) negotiated for the seller.  The HFF investment sales team was led by managing directors Dave Nachison and Alan Davis.

David Nachison

"Riverside Station has outperformed the overall Class A Northern Virginia apartment market in terms of rent growth for the past three years.," Nachison notes in a prepared statement from his office.

"Continued rent growth is widely expected to continue for the foreseeable future as this very active I-395/95 corridor becomes home to over 25,000 known new jobs through BRAC initiatives alone at Fort Belvoir, the Engineering Proving Ground and the marine base at Quantico."

Added Davis, "Riverside Station's attractiveness is further enhanced by its direct access to the VRE station at Rippon Landing, which provides residents with a convenient commuter option with stops at Fort Belvoir, Crystal /Pentagon City, L'Enfant Plaza and Union Station."

The property is located in close proximity to employment centers, Potomac Mills Mall, Potomac Town Center and Leesylvania State Park.

Many of its units have views of the Potomac River and the community is adjacent to the Rippon Landing Virginia Railway Express (VRE) station.

Alan Davis

Amenities include attached and detached garages, a fitness center, playground, outdoor pool, media room, executive business center. clubhouse, business center, billiards room and jogging trail.

The property is located adjacent to the Rippon Landing Virginia Rail Express (VRE) station offering commuters convenient access to rail service into downtown Washington, D.C., as well as access to Interstate 95 and Route 1.

Riverside Station Apartments has one-, two- and three-bedroom units averaging 952 square feet each.

Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group.  Principal Global Investors manages $222 billion in assets primarily for retirement plans and other institutional clients.

Associated Estates now has 1,472 units across seven properties in the Maryland/Virginia region.

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