Carmel Partners has acquired a 250-unit condominium complex for $65.8 million (€46.3 million) in Fairfax, Northern Virginia through its third fund, the $700 million Carmel Partners Investment Fund III.
Carmel bought the for-sale residential development, called Avera Station, in order to reposition the apartments as rental units. The firm said in a statement the rental market in Northern Virgina was “strong.” Carmel has renamed the Fairfax complex, the Carmel Vienna Metro.
The multifamily sector has attracted a host of private equity real estate investments over the past six months as buyers hold off purchasing homes amid the declining residential property market.
Chicago-based Henderson Global Investors also said strong rental demand in Sacramento had prompted it to buy a 792-bed student housing development in a joint venture with Valeo University Communities. The property, which was acquired for $36 million, serves the Cal State-Sacramento university markets.
Henderson said in a statement rising foreclosure rates had diminished many residents’ creditworthiness, thereby accelerating “renter demand for lower-tier units. This trend is forecast to persist in the coming quarters as firms further streamline labor forces and ARMs continue to reset.”
Carmel’s third fund, which closed last October, continues the firm’s strategy of targeting multifamily investments.