Walls are up and steel installation is underway, meaning that construction is progressing on track at Golden Triangle Logistics Center in Wallkill, NY, said Crow Holdings Development. Fully approved for 834,800 square feet, the Class A, two-building warehouse/distribution property sits on 92 acres in Orange County and marks the company’s first New York State industrial venture. 

“Orange County has come into its own,” said Crow Holdings Development VP Brad Vander Vliet. “The Hudson Valley is a natural extension of the Northern New Jersey market, while offering rents 30% lower, greater regional connectivity characteristics, and port proximity comparable to that of Exit 8A. A strong labor pool and reasonable taxes add to its appeal.” 

A summer 2025 delivery is anticipated for the property’s first, 535,600-square-foot building. Golden Triangle also includes plans for a second, 299,200-square-foot building. JLL’s James Panczykowski and Rob Kossar are marketing the campus for lease to tenants or turnkey sale to users.

Fortune Holdings has picked up three Class C multifamily properties in West Charlotte. Fortune paid $49.6 million for the group. Capstone Companies, the broker in the deal, says the transaction is the largest Class C portfolio transaction by unit count and total dollar amount in 2024 to date.

The properties are Scarlet Pointe (274 units-top photo), Townhomes at Wisteria Hills (102 units-bottom of photo), and Ravenwood Hills Apartments (120 units). Robinson Realty sold the Ravenwod Hills Apartments. Lucern Capital Partners sold the other two. All three were built in the early 1970’s.

Fortune Holdings, LLC emerged as the sole buyer in this transaction, acquiring the properties as part of a strategic investment initiative. Fortune Holdings plans to renovate the properties for sustainable growth.

The Capstone brokerage team was made up of Ron Corrao and Eric Liebich.

WashREIT is transitioning into a multifamily-only REIT with massive deals to sell its office and retail portfolios. 

Bisnow/Jon Banister

WashREIT CEO Paul McDermott and Boston Properties’ Senior Executive Vice President Ray Ritchey at Bisnow’s 2018 D.C. State of the Market

The D.C.-based REIT announced Tuesday it reached a $766M deal to sell a 12-asset office portfolio to a Brookfield Asset Management private real estate fund. 

It also announced it signed a letter of intent to sell its eight remaining retail assets to an undisclosed buyer for around $170M. It expects the sales to close in Q3. 

The company plans to use the proceeds of the sales to repay debt and to expand its multifamily portfolio to the Atlanta, Raleigh-Durham and Charlotte markets. It has made several D.C.-area apartment acquisitions over the past six years, and it signaled in 2019 that it planned to make a major portfolio shift after selling a series of retail properties. 

“We are announcing the most significant milestone to date in our transformation into a multifamily REIT,” WashREIT CEO Paul McDermott said in a release. “This transaction, along with sourcing multifamily expansion opportunities and our retail sales process, signals our belief that the multifamily asset class is the best vehicle to harness long-term growth for our investors.” 

The 12-asset office portfolio totaling 2.7M SF was 83% occupied as of May 31, the REIT said.

The portfolio includes six properties in the District: 1775 Eye St. NW, 1140 Connecticut Ave. NW, 1220 19th St. NW, 1901 Pennsylvania Ave. NW, 2000 M St. NW and the Army Navy Building. The portfolio also includes six Northern Virginia buildings: 515 King St. and Courthouse Square in Alexandria, Silverline Center in Tysons and 1600 Wilson Blvd., Fairgate at Ballston and Arlington Tower in Arlington. 

The Watergate 600 office building, part of the famed Watergate Complex

The REIT left one office asset out of the portfolio: Watergate 600. But it said it plans to sell it “when practicable.” It acquired the 300K SF office building at 600 New Hampshire Ave. NW in 2017 for $135M and then completed a significant renovation effort. 

JLL is representing WashREIT in the office and retail portfolio sales, and Goldman Sachs & Co. is serving as its financial adviser. 

WashREIT’s existing multifamily portfolio includes 21 fully stabilized assets across the D.C. area and the 401-unit Trove building in Arlington, which delivered last year and is now over 60% occupied. The 7,100-unit multifamily portfolio was 95.4% leased, excluding the Trove building, as of May 31. 

The company plans to deploy around $450M to expand its multifamily portfolio over the rest of this year. It said it plans to focus on properties between the Class-A-minus and Class-B segments with middle-income renters. 

“With this transaction, we have the resources to expand the scope of our successful research-led, value-creation strategies into high-growth Southeastern markets that we have studied for the past several years,” McDermott said. “These strategies include serving the underserved mid-market renter and delivering the best resident experience across several price points, thereby creating the greatest value for all of our stakeholders.”

McDermott, in emailed responses to Bisnow questions, said fully shifting to multifamily provides a simplified story for its investors and concentrates its holdings in a more high-growth sector than office.

“We believe multifamily assets will continue to increase in value as they have most of the past 25 years and we believe the office market will face increasing and continued headwinds going forward,” McDermott said.

WashREIT is working with Brookfield to transfer “the majority” of its office personnel to Brookfield, McDermott said, adding that it plans to expand its multifamily team as it grows that business.

UPDATE, JUNE 15, 1:30 P.M. ET: This story has been updated with additional comments from WashREIT CEO Paul McDermott.