IGIS acquires US multifamily property for $262 mn

IGIS Asset Management Co., South Korea’s largest real estate asset manager, has purchased a multifamily asset in Alexandria, Virginia, through US asset management firm Timberline Real Estate Ventures LLC. The deal amounts to $262 million, according to Korean investment banking sources on Dec. 23.

US real estate firm Perseus TDC and its partners, Four Points LLC and ELV Associates Inc., have sold the property named The Foundry, a 16-story, 520-unit luxury multifamily community with 25,562 square feet of retail space at 2470 Mandeville Lane. The building includes various sizes of bedrooms with amenities such as a three-story fitness facility, yoga studios, rooftop pool and indoor dog park.

Established in March 2020, The Foundry is currently 97% leased. The second headquarters of Amazon (Amazon HQ2) and Virginia Tech Innovation Campus, a new campus that will focus on project-based learning and research in science and engineering, are under development near the property. The construction projects, which will be completed in three years, are expected to fuel demand for multifamily assets in the area.

IGIS has been active in purchasing multifamily assets. In May 2020, the asset manager and Korea’s Hana Financial Investment Co. acquired a 49% stake in the headquarters of the US mortgage lender Fannie Mae for 250 billion won ($210.7 million).

Both IGIS and Hana bought the stake in the two-building Midtown Center in Washington DC from US real estate investment firm Carr Properties Corp. Carr said it will hold the remaining interest in the 80,717-square-meter property at the time.   

Earlier this month, the Korean asset manager made a forward funding deal of three logistics centers under development in the US. Valued at around 330 billion won ($276.7 million), the construction will be completed in 2023. Two centers, one located in Cleveland, Ohio, and another in Albany, New York, will be leased to Amazon. The other, located in Omaha, Nebraska, will be leased to FedEx. The two companies will each rent the warehouses for 15 years.

IGIS manages $34 billion under management as of the end-2020, including $11 billion allocated to overseas real estate investment. 

Write to A-Young Yoon at youngmoney@hankyung.com
Jihyun Kim edited this article.