Cortland buys Virginia’s 2nd luxury tower
Corlanda multi-family real estate investment, development and management company, has acquired the 29-story, 455-unit Evo in the Highlands development along the Rosslyn-Ballston Corridor in Rosslyn, Virginia, from penzance. The price was not disclosed.
The property was developed in partnership with Baupost Group, an investment manager, and was the second Penzance-owned tower in the Highlands to be bought by Cortland in recent months. Cortland acquired Aubrey, a 23-storey, 331-unit luxury apartment tower in the Highlands development in Penzance in May and renamed it Cortland Rosslyn. Penzance had completed development of three towers at The Highlands in 2021. The third – Pierce – is a 24-storey condominium building with 104 residences.
When Cortland made the first purchase, the company said it would be one of four acquisitions it planned in the Arlington, Va., market that would total more than 1,500 units and cost more than $1,000. a billion dollars. In a separate transaction in May, Cortland also acquired Aura Pentagon City, a 534-unit apartment community it renamed Cortland Pentagon City, from Polinger Co.
Mike Altman, chief investment officer at Cortland, said in a prepared statement that the Evo acquisition is the culmination of an investment round the company began in May with the purchase of Cortland Rosslyn. He said Cortland is creating a seamless, resident-centric and hospitality-focused experience with the combination of the two trophy towers. Altman said the purchase of the two towers of The Highlands, a 1.2 million square foot mixed-use development, is just the start of Cortland’s investment in the area. In addition to three luxury residential towers, The Highlands includes a new fire station, a 24,000 square foot park and 40,000 square feet of retail.
Located at 1771 N. Pierce St., the development of Evo and the Highlands had been in the planning stages for 11 years. The developer had received a $290 million construction loan held by JPMorgan Chase and issued by Mack Real Estate Group in August 2018 in a portfolio transaction, according to Yardi Matrix data. Evo received an estimated allocation of $167 million, based on the average value per share across the entire portfolio. The property is subject to an unsubordinated net ground lease held by Arlington County, Yardi Matrix reported.
Evo offers apartments with floor plans ranging from studios to one-, two-, and three-bedroom units and several three-bedroom penthouses. Residences range from 526 square feet to 1,387 square feet for most three-bedroom units and up to 2,485 square feet for the largest penthouse, according to Yardi Matrix data. Units include high-end appliances, floor-to-ceiling windows, and stunning views of Washington, DC, the skyline, Arlington, and the Potomac River. There are digital locks in all units as well as washers and dryers. Most apartments have a private patio or balcony. The building features over 30,000 square feet of amenity space, including a rock climbing wall, multi-sport simulator, darts lane, rooftop pool, outdoor grilling stations, multiple garden patios lush with seating and a fitness center with water spa. There is a clubhouse, business center, coworking space, and private conference rooms.
More Cortland Growth
Cortland has also expanded its multifamily presence into other markets in the United States. In June, the company acquired a 202-unit community in Scottsdale, Arizona, for nearly $74.8 million through a partnership between Edgehill and The Tanbic Co. Cortland renamed the garden-style community, formerly known as the Centerra name, under the Cortland Scottsdale Mountain name. The company had acquired two similar communities totaling 668 units in the Phoenix metro in October 2020.
In December, Cortland purchased the 379-unit Falcon Square at Independence in Winter Garden, Fla., for $116.8 million from Venterra Realty, according to Orange County records. The property is close to Highway 429, providing easy access to downtown Orlando. Universal Orlando and Disney World theme parks are located within 15 miles of the community. Also in 2021, a Cortland joint venture opened the 355-unit Cortland ChampionsGate in the ChampionsGate neighborhood of Orlando.