The 2020 Finance Transaction of the Year...
Southern Towers is the largest multifamily community in Virginia. Its sale was one of the largest multifamily transactions nationally in 2020. Built in 1965 and sold for the first time, the historically well-occupied multifamily community in Alexandria, VA totals 2,311 units. The purchasing entity acquired the community from two local families. The buyer viewed the opportunity as a once-in-a-generation opportunity to create immediate scale and execute a deep value-add strategy that would benefit and enhance both the asset and submarket. Additionally, the unique offering sits on 40.5 acres, minutes from Washington, D.C and proximate to significant employment hubs in Northern Virginia including Amazon’s National Landing headquarters. The property also includes 6,450 SF of freestanding, service-associated retail space. Southern Towers has been an icon of the Alexandria skyline for over half century and a cornerstone of affordable housing with over 100 units for low-income families.
The transaction occurred successfully, despite the immense challenges and uncertainty of the capital markets brought on by the Covid-19 pandemic. Complexities arose unique to the pandemic. Monitoring and tracking daily operations required scrupulous oversight to ensure accuracy and confidence in the transaction. The investment sales team conducted a wide marketing campaign beginning in early 2020 to promote the property and investment opportunity. This process inspired confidence from the buyer to execute such a complex and dynamic transaction. Together, the buyer, seller, CBRE investment sales team, and CBRE debt and structure finance team worked to navigate the challenging environment to get the transaction completed. The CBRE finance team included David Webb, Maxi Leachman & Justin Glasgow.