Over the last decade and a half, it has made much more sense for Bozzuto to build rather than buy apartments. However, as it has become harder to pencil out new projects, the Greenbelt, Maryland-based owner, developer and No. 11 manager in the country has now pivoted.
“Given current ongoing economic challenges in development and construction, we find it to be a more opportune time to consider acquisitions,” Brad Coker, senior vice president of acquisitions, asset management and private equity, told Multifamily Dive.
In April, Bozzuto purchased Gables 12 Twenty One in the Rosslyn submarket of Arlington, Virginia, for $45.5 million — its first acquisition since 2008. Upon buying the building through its discretionary Multifamily Fund, raised in 2022, Bozzuto changed the property’s name to The Alcott. The Washington Business Journal first reported the transaction for the property, which sits just outside Washington, D.C.
“The 132-unit boutique community is within walking distance of the Rosslyn-Ballston Corridor and conveniently located near metro connectivity to Amazon's HQ2 and the Virginia Tech Innovation Campus,” Coker said. “Rooted in the Mid-Atlantic, this acquisition perfectly complements the existing Bozzuto portfolio and operating expertise.”
More deals to come
New York City-based commercial real estate services firm Berkadia was the broker for the acquisition of The Alcott and arranged acquisition financing through Freddie Mac. Bozzuto Management Company, which operates 160 properties in the mid-Atlantic, will manage the property.
“This property was built in 2009 and is in great condition,” Coker said. “However, we see potential in updating the finishes in the units, amenity areas and corridors to a more modern standard. We will be renovating those areas to improve the resident experience accordingly.”
Bozzuto may have gone without an acquisition for 16 years before purchasing The Alcott, but don’t expect a similar wait until its next purchase, especially if current market conditions persist, according to Coker.
“This transaction is part of a wider effort by Bozzuto to acquire more high-quality, stabilized assets across the East Coast,” he said.
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