The presence of Amazon HQ2 is doing exactly what experts said it would – making owners of properties near the incoming campus see huge returns on their investments.
The Paradigm Companies, owners of a huge 533 unit apartment building in Pentagon City that they purchased in 2009 for $109.7 million, recently sold the property’s two towers. The complex is currently called The Aura Pentagon City, recently renamed from Meridian Pentagon City, and is just one block from an Amazon HQ2 parcel by JBG Smith.
The buyer was Polinger Company with a final sales price of $228 million. Not a bad return for the Paradigm Companies’ $109.7 million investment.
The deal closed for $18 million more than forecasts done by national multifamily property experts. The final price of $428,000/unit is quite a bit higher than the $393,000 price forecast already deemed “aggressive for Pentagon City” by experts before the sale details were finalized and announced.
What’s the effect of the arrival of Amazon for Pentagon City? In this case, a boost of about $35,000/unit on an already-massive transaction.