MCLEAN, Va.–(BUSINESS WIRE)–American Real Estate Partners (“AREP”), today announced the company’s acquisition of 1101 King Street in the heart of Old Town Alexandria. This is AREP’s fifth investment through its Strategic Opportunity Fund III (“Fund III”) which is now deployed at 60%. The company chose Cooper Carry to lead the project’s redevelopment design team and residential hospitality RD Jones for the interiors. Construction is expected to begin in July 2023.
The redeveloped 200,000 square foot building will contain approximately 200 apartments and 17,500 square feet of commercial and office space on the first floor. This latest acquisition is part of AREP’s broader strategic investment strategy targeting industrial, data center, residential and office assets in the East Coast urban and suburban markets. The acquisition included the simultaneous purchase of all condominium units in the office building from all seven owners. All office leases have been restructured to allow a deconversion of office co-ownership and a redevelopment into a mixed-use building. AREP will maintain the commercial leases for the ground floors, including Orange Theory and Paris Baguette, throughout construction so as not to disrupt community facilities.
Located in the heart of King Street’s bustling restaurant and shopping corridor, 1101 King St. is within walking distance of everything residents need to live, work and play. When complete, the redesigned property will offer residents a club room, fitness center and rooftop social terrace, with incredible views of the Old Town. Premium access to live entertainment and waterfront park activities is just steps from the property’s front door, and the King Street subway is a 10-minute walk away and just three stops from Amazon HQ2.
In line with AREP’s focus on wellness and value-rich experiences across the portfolio, 1101 King St. will offer world-class features and select amenities, including shared hybrid workspaces and high-end concierge services. Taking into account the post-COVID transition to hybrid working, the redesigned 1101 King St will feature larger than average units that allow for indoor and outdoor living, incorporating deep terraces and work spaces home.
“We are delighted with the acquisition of the 1101 King. It sits right in the center of the historic old town of Alexandria and rises four stories above the surrounding buildings with views of the entire city. The balconies on each level are more like terraces, with several 10 to 20 feet deep. It’s a one-of-a-kind asset that can never be replicated,” said Doug Fleit, co-founder and CEO of AREP. “This asset exemplifies AREP’s strategy of seeking special properties in dynamic and emerging locations that can be repurposed for residential use.”
“This office-to-multifamily conversion acquisition is one of our key investment strategies and reinforces our ability to identify strong investments in diverse product types and markets to create value,” said Brian Katz, co-founder and president of AREP.
In June, AREP announced the closing of Fund III with $63 million in equity commitments expanding the diversity of public and private institutional investors and family offices. Fund III will continue AREP’s focus on a value-added and opportunistic strategy, focusing on data centers, residential, industrial and office assets in urbanized urban and suburban East Coast markets. Fund III’s co-investment capital aims to invest in $1.5 billion to $2.0 billion of total asset value, using moderate leverage.
ABOUT US REAL ESTATE PARTNERS
Based in the Greater Washington Metropolitan Area, AREP is an institutional money manager and operating partner focused on data center, residential, industrial and office assets on a development and repositioning basis in various markets along the East Coast.
Since the company’s inception in 2003, AREP has deployed over $5.1 billion in targeted geographies, acquired over 20 million square feet of Class A real estate, and currently oversees over 10 million square feet . AREP’s vertically integrated real estate platform and experienced management team offer exceptional expertise across all property disciplines, from acquisition to completion. Drawing on this expertise, AREP remains at the forefront of real estate innovation, maximizing investment and improving performance to bring added value to its investors. To learn more, visit AREP’s press room or follow us on LinkedIn.