- Foulger Pratt acquired four apartment buildings totaling 1,248 units in Washington, DC from AvalonBay for $447M.
- The deal includes properties in NoMa, Gallery Place, and H Street NE, with three already closed and one under contract.
- The acquisition aligns with Foulger Pratt’s value-add investment strategy and belief in DC’s long-term rental market strength.
Major Multifamily Move In The Capital
Foulger Pratt has made a big bet on Washington, DC’s apartment market, reports Bisnow. The firm purchased a four-property portfolio from AvalonBay Communities. The total sale price was $447M. The deal spans 1,248 units across neighborhoods including NoMa, Gallery Place, and H Street NE, with three of the properties having already closed.
The Breakdown
The $447M portfolio includes:
- Avalon at Gallery Place (now The Esquire on Fifth): 203 units, sold for $86M.
- Avalon First and M (now Mira First & M): 469 units, sold for $182M.
- AVA NoMa (now Slate at NoMa): 438 units, sold for $142M.
- AVA H Street: 138 units, under contract for $36M.
The average price per unit in the deal comes to $358K, with the portfolio trading at a 5.94% in-place cap rate.
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Retail And Rebranding
The newly acquired properties include street-level retail tenants like Starbucks, Streets Market, and Andy’s Pizza. Each property is also being rebranded, a signal of Foulger Pratt’s value-add strategy. Renovations are planned to enhance the assets and drive long-term returns.
Strategic Rationale
Foulger Pratt’s CFO Joe Clauser said the deal aligns with their strategy of acquiring “high quality multifamily assets in great locations at significant discounts to replacement cost.” The firm partnered with PCCP and Tryline Capital on the acquisition, targeting neighborhoods with limited development pipelines and strong growth potential.
Tenant Challenges And The TOPA Factor
The acquisition process was complicated by DC’s Tenant Opportunity to Purchase Act (TOPA), which gives tenants the right to match purchase offers. While tenants at three properties opted not to organize, those at AVA H Street assigned their rights to Foulger Pratt and partners, allowing the deal to proceed.
What This Means For AvalonBay And The Market
The sale significantly reduces AvalonBay’s DC holdings, leaving the REIT with 1,516 units in the city. The company has also been looking to exit other markets, including Seattle and New York, citing ongoing disposition plans on its July earnings call.
The sale highlights continued institutional interest in DC’s multifamily market. Investors are targeting high-quality assets in neighborhoods with high barriers to entry. Limited new supply in these areas is also driving demand.
Looking Ahead
With this latest acquisition, Foulger Pratt now owns nearly 2,900 units in the District. In addition, its national portfolio has grown to over 7,700 units. The firm’s bullish stance on DC multifamily echoes broader trends: investor focus is shifting toward stabilized assets in core markets with strong rent growth potential and development headwinds.
As interest rates remain volatile, expect more strategic trades and value-add plays in top-tier urban markets like Washington, DC.
