American Real Estate Partners acquires office-to-apartment conversion investment bringing 200 units to the heart of Old Town Alexandria
MCLEAN, VA – American Real Estate Partners (“AREP”), 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.