CIM Group with Korean Capital Buys Southern Towers in Alexandria, VA
Posted on 09/04/2020
Los Angeles-based CIM Group purchased a five-building apartment property in Alexandria, Va., for US$ 506 million. The sellers are Snell Properties and Caruthers Properties. The property is located at 4901 to 5055 Seminary Road. The two 16-storey towers are known as Southern Towers and were built between 1961 and 1965. Southern Towerssit on a 40.5-acre site 8 miles southwest of Washington, D.C.
CIM lured investors into the deal including the Korean Teachers’ Credit Union (KTCU). KTCU is committing capital, some US$ 50 million, through a fund managed by Seoul-based asset manager Vestas Investment Management Co.
The institutional investors break down the investment into two parts, the buying of Southern Towers at US$ 506 million and the rehab of the properties that will require additional capital, which could bring the total investment (including purchase price) to US$ 700 million. The investors plan to kick in US$ 250 million as subordinate owners and finance the remaining US$ 450 million via loans.
Keywords: Korean Teachers Credit Union.