Cos UIP. and Churchill alive acquired a 300-unit community in Arlington, Virginia, seeking to benefit from the expected growth that Amazon‘s HQ2 will bring to the region. A subsidiary of UIP and a subsidiary of Churchill Living acquired The Millennium from Clarion Partners, which was represented by CBRE‘s Bill Roohan, for $200.5 million, according to public records.
UIP raised $78 million for the acquisition, part of which was raised through the crowdfunding platform crowd street, while KKR Real Estate Financing placed a $135 million first mortgage on The Millennium.
The 19-story community was built more than 12 years ago, several years before Amazon announced the construction of its second headquarters in Arlington. The Millennium offers studio, one, two and three bedroom units and was also built with an 11,000 square foot club room, rooftop pool, lounge, fitness center, patio exterior, a lounge for residents, a library, a business center, bicycle storage and guest suites. IPU Director Peter Bonnell said Multi-Accommodation News that the community is 95% occupied.
Located at 1330 S. Fair St., the Millennium sits directly across from the two-acre Metropolitan Park, which Amazon is spending $14 million to renovate. Amazon is also currently working on its two main nearby office buildings, which are expected to offer retail space on the ground floor.
According to UIP, Amazon’s headquarters is expected to have 25,000 employees by 2030, which is expected to create more direct and indirect jobs by 2035. UIP expects this influx of workers to increase demand for housing and other services in the region. Developers also expect more growth in the area and have started construction on several residential projects nearby.
$9 MILLION RENOVATIONS
Being located near Amazon’s headquarters, UIP has several plans for The Millennium to be able to take advantage of the upcoming development. The new owner will convert the current lobby and street-level offices into 5,000 square feet of retail space that will be operated by an upscale restaurant. The restaurant tenant is expected to create an indoor/outdoor cafe and dining area that faces the Metropolitan Park, adding to the long list of amenities already offered in the community.
As for the residential portion of the Millennium, UIP is planning a $9 million renovation of its common areas and apartments. Steve Schwat, founding director of UIP, said in prepared remarks that units will be upgraded with upgraded kitchens, spa-like bathrooms with Bluetooth-enabled lighted medicine cabinets, under-cabinet lighting, anti- -tiled splashbacks, customizable closets, electric shutters and Suite.
Bonnell also said MNH that unit renovations will take place as apartment leases are naturally renewed, which could take up to three years. He also said MNH that street-level renovations are expected to be completed this summer.
UIP has also put its management division, IPU property management, in charge of managing The Millennium. Over time, Churchill Living will also take up to 150 apartments in the community to use as temporary housing for its government and private sector clients.