August 21, 2023IREI
Rithm Capital Corp., American Real Estate Partners (AREP) and GreenBarn Investment Group have partnered to acquire a luxury 200-unit subdivision of townhomes in Ashburn, Va., from Dream Finders Homes for $120 million.
Launching as CityHouse Ashburn Station, the community is prime for individuals and families who are renters by choice, seeking a single-family home lifestyle, and as an alternative to the for-sale market.
AREP and GreenBarn are co-general partners for the project. Rithm is providing equity capital, in part through its strategic partnership with GreenBarn, and providing debt financing through its subsidiary Genesis. Phase one of CityHouse Ashburn Station will be available to rent in mid-August. The team will deliver the remaining phases over the next 15 months.
"With this acquisition, our partnership is taking an opportunistic investment approach to redefine and elevate the BTR sector, one that encapsulates AREP's signature strategy of creating truly unique properties in vibrant and emerging locations and our agility to invest in high-impact niches of the real estate market," said Brian Katz, AREP co-founder and president. "This investment places us at the leading edge of the BTR market and ties to the core tenets of our Fund III investment thesis."
The new 200-unit BTR subdivision provides an urban experience in a suburban node, offering residents an ideal location close to the Northern Virginia tech, innovation and office hubs with easy metro access to the entire DMV area via the Silver Line. Unit sizes will average 2,000 square feet and offer attached private garages, large island kitchens, full-size side-by-side washers and dryers, seamless connectivity and smart home functionality, with resident amenities including sports courts, communal outdoor green spaces, pet-friendly facilities and indoor/outdoor entertainment areas.