UDR Inc., a multifamily real estatetrust, has acquired 1301 Thomas Circle in Washington, D.C. for $154 million in a joint venture with Kuwait Finance House (KFH). The 10-story, 292-home luxury apartment community is located in the Logan Circle neighborhood near the 14th Street Corridor and less than a mile from the White House.
Constructed in 2006, 1301 Thomas Circle is within walking distance from the Mt. Vernon Square and McPherson Metro Stations as well as two of UDR’s other operating communities—Andover House and View 14—and itsproject, 2400 14th Street. Following the close of this transaction, UDR will own or have an ownership interest in 21 communities consisting of 5,934 apartment homes in the Washington, D.C. market.
The community’s studio, one- and two-bedroom apartment homes average 852 sq. ft., are 94 percent occupied and have an average income per occupied home of $2,740 per month.
The acquisition is being funded through a five-year, 2.99 percent, $90 million interest-only loan from Fannie Mae, a 70 percent equity contribution by KFH of $44.8 million and a 30 percent equity contribution by UDR of $19.2 million.
Since its formation in 2009, the joint venture has invested $281 million in metropolitan Washington, D.C. through the acquisition of three operating communities containing 660 homes. Following the acquisition of 1301 Thomas Circle, there will be approximately $169 million of remainingcapacity under the terms of the joint venture agreement.