Northwest Washington and Reston, Virginia Projects
Will Add 542 New Apartment Units
ARLINGTON, Va., June 9 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc. (NYSE: SRW), a leading residential REIT, today announced the
start of construction of two new apartment properties in the Washington D.C.
area -- a 142-unit luxury high rise, which the company will develop on
Connecticut Avenue in Northwest Washington D.C., and a 400-unit property
designed around a small lake in the Town Center District of Reston, Virginia,
to be purchased upon completion of construction and lease-up. The company
expects to invest a total of approximately $68 million in the two properties.
Including the two new properties, the company now has over 2,800 units under
construction in six properties that it is building or has contracted to
purchase in the Northern Virginia, Washington D.C., Chicago and Boston areas.
The company also announced that its 630-unit Springfield, Virginia property
opened last month and is leasing strongly with over 150 units already rented.
Al Neely, Senior Vice President - Development for Smith Residential, said,
"The Connecticut Avenue and Reston projects are outstanding development
properties, enhancing our market leadership position in the Washington area.
Both developments are consistent with our strategy of targeting "renter-by-
choice" residents with high quality properties at infill sites in strong
submarkets. The Connecticut Avenue property is the first new luxury apartment
building to be built in the Connecticut Avenue corridor since 1989, and will
be one of the finest apartment buildings in Washington D.C., with spectacular
views of the city and Rock Creek Park. The Reston project is in the midst of
the booming Northern Virginia technology industry corridor, and the site is in
the desirable urban core of Reston, the Town Center District, in close
proximity to many restaurants, shops, and offices."
The Connecticut Avenue property -- to be called the Park Connecticut --
will be an 11 story, 142-unit high rise constructed on an infill site on the
east side of the street. The site slopes steeply away from the street level
into Soapstone Valley Park, which leads into Rock Creek Park, so that the
building will have six stories facing Connecticut Avenue and eleven stories
facing the park -- providing park views from a majority of apartments. All
apartments will have extensive top-of-the-line luxury features, including
nine-foot ceilings, granite counter-top kitchens, whirlpool tubs and gas
fireplaces. The Park Connecticut will also have a rooftop terrace with
swimming pool, as well as a library, business center and fitness center. The
addition of the Park Connecticut, which is only one block from a Metrorail
station, will increase the number of apartments the company owns in the
northwest Washington submarket to 3,272 units, including three other
properties within two blocks. Total development cost is expected to be
approximately $25 million, which will be funded from the company's bank credit
line, and initial occupancy is expected in the fall of 1999.
The 400-unit Reston, Virginia community will be located on one of the last
two sites zoned for multi-family in the Town Center District. Reston is in
the midst of the fast-growing Dulles corridor submarket, which is driven by
the continuing strong expansion of the information technology industry in
Northern Virginia -- the third largest concentration of technology jobs in the
country. The new community -- to be called Reston Landing -- is beautifully
sited around a small lake, within walking distance of the Reston Town Center
restaurants and retail shops. It is also close to a substantial amount of
professional office space, including build-to-suit office buildings currently
under construction for several major technology industry and professional
services companies. The gated community will have an innovative community
center complex with swimming pool, great room, fitness center and business
center, and will include some loft and integral garage apartment units.
Smith Residential has negotiated an agreement with an affiliate of The
Foulger-Pratt Companies and ARGO Investment Company to build the Reston
project in accordance with plans that have been developed by the company.
Smith Residential has contracted to purchase the property upon completion of
construction and lease-up, for an estimated net cost to the company of
approximately $43 million. Construction of the community has just started and
initial delivery of units is planned for the spring of 1999, with
stabilization expected in mid-2000.
With the start of construction at the Connecticut Avenue and Reston
properties, the Company now has over 2,800 units under construction or
prepurchase agreement in six projects in the Northern Virginia, Washington
D.C., Chicago and Boston areas.
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange (SRW). The Company and
its subsidiaries and affiliates own, acquire, develop, and manage multi-family
residential properties; and in addition, provide a full range of real estate
services to other property owners. The Company owns a portfolio of over
19,500 apartment units, has over 2,800 units under construction or prepurchase
agreement, and manages an additional 3,500+ units for other owners. The total
market capitalization of the Company -- Charles E. Smith Residential Realty,
including its Operating Partnership -- is approximately $1.8 billion. Investor
information including press releases about Charles E. Smith Residential Realty
is available on the Company's Web site at: http://www.smithreit.com.
This news release contains forward-looking statements regarding the
Company's outlook, including statements of goals, intentions, and expectations
regarding or based on assumptions about general economic and market
conditions, competitive dynamics and other factors that, by their nature, are
subject to significant uncertainties, some of which are discussed in the
Company's filings with the Securities and Exchange Commission. Because of
these uncertainties, and the assumptions on which statements in this release
are based, actual future results may differ materially.
SOURCE Charles E. Smith Residential Realty
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Related links:
http://www.smithreit.com
http://www.prnewswire.com or fax, 800-758-5804, ext. 101271
CONTACT:
Investors, Greg Samay, 703-769-1029 or Media,
John Kurtz, 703-769-1153, both of Charles E. Smith
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