The Milestone Group has acquired a three-property portfolio, totaling 870 units, in Fairfax County, Va. The company purchased the assets through a loan assumption in an off-market deal. The price of the acquisition was not disclosed.
The properties, the Ellipse at Fairfax Corner, the Windsor at Fair Lakes and the Townes at Herndon Center, were purchased through Milestone’s discretionary value-add fund, the Milestone Real Estate Investors V, LP (Fund V). The fund closed in 2021 with $750 million in capital commitments.
In prepared remarks, Chris Bartlett, head of capital markets at Milestone, said that by assuming the existing financing the firm was able to save more than $20 million in prepayment costs. The acquisition aligns with Fund V’s mission of creating growth for investors through direct purchases, entity purchases, recapitalizations and joint ventures.
The recent purchase brings Fund V’s total units to 6,000.
A look at each asset
The Ellipse at Fairfax Corner, located at 11842 Federalist Way, is a garden-style asset completed in 1989. It has 404 one- and two-bedroom homes. Situated near the Fairfax Corner and Fair Oaks malls, residents have access to retail, dining and entertainment options. Interstate 66 and routes 50 and 28 allow for access to employment options in Washington, D.C., Fairfax, Tysons and Dulles Corridor. Amenities include a pool, tennis court, fitness center and business center.
According to Yardi Matrix data, the property is 96 percent occupied. It last traded in late 2018 when Rose Valley Capital purchased the community for $98 million.
The Windsor at Fair Lakes, situated at 4106 Brickell Drive in Chantilly, is a 250-apartment, garden-style asset. It was completed in 1988 and includes one-, two- and three-bedroom luxury homes. Residents are within walking distance of Whole Foods, while Reston Town Center is easily accessible. Community amenities include a pool, dog park, fitness center and access to the W&OD bike trail.
Rose Valley Capital was the previous owner and purchased the Windsor at Fair Lakes in 2018 for $62 million, according to Yardi Matrix data. It is 97.6 percent occupied.
The Townes at Herndon Center, at 508 Pride Ave., is situated near Herndon’s historic downtown. The 216-unit townhome community was completed in 2002 and features two- and three-bedroom homes. Reston Town Center is minutes from the asset, as is a Whole Foods, Harris Teeter and Trader Joe’s. Amenities include a pool, playground, fitness center and a washer and dryer in each unit.
In 2018, Rose Valley Capital acquired the Townes at Herndon Center for $65 million, according to Yardi Matrix data. It is 97 percent occupied.
