September 12, 2022
Construction on 1101 King St will begin in July 2023
with the property set to open in fall 2024
McLean, Va., September 12, 2022—American Real Estate Partners (“AREP”), today announced the company’s acquisition of 1101 King Street in the heart of Old Town, Alexandria. This is AREP’s fifth investment through its Strategic Opportunity Fund III (“Fund III”) which is now 60% deployed. The company has selected Cooper Carry to lead the project redevelopment design and residential hospitality design team RD Jones for the interiors. Construction is set to begin in July 2023.
The redeveloped 200,000 square foot building will contain approximately 200 apartments and 17,500 square feet of retail and office space on its first floor. This latest acquisition is part of AREP’s broader strategic investment focus targeting industrial, data center, residential, and office assets across East Coast urban & urbanized suburban markets. The acquisition included the simultaneous purchase of all condominium units in the office building from the seven owners. All office leases were restructured to allow for a deconversion of the office condominium and redevelopment into a mixed-use property. AREP will maintain the ground floor retail leases including Orange Theory and Fresh Baguette throughout construction so as not to disrupt the community amenities.
Located in the heart of King Street’s bustling restaurant and retail corridor, 1101 King St. is walking distance to everything residents need to live, work and play. Once completed, the reimagined property will provide residents with a club room, fitness center, and a rooftop social terrace—with incredible views of Old Town. Premium access to live entertainment and waterfront park activities are just steps from the property’s front door, and the King Street metro is a 10-minute walk and only three stops to Amazon HQ2.
Aligned with AREP’s portfolio-wide focus on wellness and value-rich experiences, 1101 King St. will offer world-class features and curated amenities, including shared hybrid workspaces and premium hospitality concierge services. With thoughtful consideration of the post-COVID shift to hybrid work, the redesigned 1101 King St will feature larger than average unit sizes that enable indoor and outdoor living, incorporating deep terraces and in-home workspaces.
“We are thrilled with the acquisition of 1101 King. It sits in the very center of historic Old Town Alexandria and rises four stories above the buildings around it with views of the entire city. The balconies on each level are more like terraces, with many 10 to 20 feet in depth. It is a one-of-a-kind asset that can never be replicated,” said Doug Fleit, Co-Founder & CEO of AREP. “This asset illustrates AREP’s strategy of looking for special properties in vibrant and emerging locations that can be repurposed for residential use.”
“This office to multifamily conversion acquisition is one of our core investment strategies and reinforces our ability to identify strong investments across diversified product types and markets to deliver value,” said Brian Katz, Co-Founder & President of AREP.
In June, AREP announced the closing of Fund III with $63 million in equity commitments expanding on the diverse mix of public and private institutional investors and family offices. Fund III will continue AREP’s focus on a value-add and opportunistic strategy, concentrating on data center, residential, industrial, and office assets in East Coast urban and urbanized suburban markets. Fund III’s co-investment capital is targeted to invest in $1.5 B to $2.0 B of total asset value, utilizing moderate financial leverage.