The Milestone Group Announces Acquisition of 870-Unit Multifamily Portfolio in Northern Virginia
December 5, 2022
December 5, 2022
Fairfax, VA, December 5, 2022 – The Milestone Group (Milestone) has announced its acquisition of a three-property, value-add, multifamily portfolio totaling 870 units in Fairfax County, Virginia, executing an off-market acquisition through a loan assumption that saved significant prepayment costs. The purchase price was not disclosed.
The acquisition included:
• The Ellipse at Fairfax Corner, a 1989-vintage, 404-unit, garden-style community
• Windsor at Fair Lakes, a 1988-vintage, 250-unit, garden-style community
• The Townes at Herndon Center, a 2002-vintage, 216-unit, townhome community
“The properties in this portfolio are well-located and of institutional quality, providing Milestone with a strong mark-to-market opportunity to improve performance through strategic capital enhancements and a sophisticated operating platform,” said Milestone Vice President for Acquisitions, Jason Wise. “These communities reflect Milestone’s continued interest in acquiring assets in resilient, high barrier-to-entry markets, close to major employment centers, great schools, and abundant amenities. We look forward to executing our business plan and modernizing the assets to improve their position in the market.”
Milestone acquired the portfolio in its discretionary value-add fund, Milestone Real Estate Investors V, LP (Fund V), bringing Fund V to nearly 6,000 multifamily units and Milestone to 10,000 multifamily units across the United States. Fund V seeks to create growth for investors by capitalizing on risk-adjusted, value-oriented opportunities through direct purchases, entity purchases, joint ventures, and recapitalizations. Milestone has a reputation for specifically solving for a seller’s strategic or structural requirements. “We focus on creative deal structures to generate win-win solutions with sellers. In this case, we were able to save over $20M in prepayment costs by assuming the existing financing,” said Chris Bartlett, Milestone’s Head of Capital Markets. “Although loan assumptions can be an arduous process, a significant number of our investments during the last five years have been through loan assumptions, which we believe differentiates us when working with sellers as we are able to efficiently work through the process while saving substantial prepayment penalties.”
About the Properties
The Ellipse at Fairfax Corner in Fairfax, VA features one and two-bedroom apartments conveniently located near the amenity-rich Fairfax Corner and Fair Oaks Mall destination retail centers. The property is minutes from I-66, Route 50, and Route 28, providing exceptional access to job destinations in Fairfax, the Dulles Corridor, Tysons, and Washington, D.C. Residents enjoy spacious apartments with fireplaces, a fitness center, pool, business center, and tennis courts in a mature, wooded setting.
Windsor at Fair Lakes in Chantilly, VA provides one, two, and three-bedroom floor plans in luxury apartments within walking distance to Whole Foods and minutes to Fairfax Corner and Reston Town Center amenities. A resort-style pool, state-of-the-art fitness facility, dog park, and convenient access to the WO&D bike trail provide residents with exceptional outdoor activity options while living close to key transportation routes.
The Townes at Herndon Center near historic downtown Herndon, VA features two and three-bedroom open floorplan townhome apartments in a walkable setting convenient to grocers Whole Foods, Trader Joes, and Harris Teeter, and minutes from destination retail at Reston Town Center. The community features a pool and fitness center as well as one and two-car attached garages for each unit.
The Milestone Group is a leading, privately held real estate investment management firm with strong expertise and focus on value-add multifamily assets in major metropolitan markets of the United States. Founded in 2003, Milestone has created trust and confidence with its investors through successfully navigating multiple economic cycles, maximizing returns for investors across over $9 billion of multifamily investments totaling more than 80,000 units. Milestone invests through a series of discretionary equity funds and has corporate offices in Dallas, TX, Boca Raton, FL, and Atlanta, GA. For more information, please visit www.milestonegp.com or contact firstname.lastname@example.org.