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Buchanan Partners, one of the Washington, DC metropolitan area’s leading real estate developers, has joined with The Pinkard Group of Bethesda, MD and Boston-based Great Point Investors, LLC to form a residential land investment fund. Buchanan Pinkard Residential, LLC (BPR) will acquire and develop a portfolio of for-sale residential lots in multiple Washington, DC metropolitan area submarkets including Montgomery, Frederick, and Anne Arundel Counties in Maryland and Arlington, Fairfax, Loudoun, and Prince William Counties in Virginia.
Great Point Investors has committed funds to enable as much as $240 million in lot sales. The portfolio currently consists of two assets: Heathcote Commons, under development in Gainesville, VA, and a 26-acre site near Germantown, MD, currently under contract. These two sites (the Acquisition Portfolio) will consist of 485 for-sale townhouses and condominium units. BPR is currently evaluating additional investment opportunities for the portfolio.
BPR will invest in fully or partially entitled residential land, with the goal of acquiring and bringing to market more than 3,000 finished lots. The fund’s operators will obtain necessary development approvals, install community infrastructure, and deliver finished building lots to national and regional homebuilders via contracted takedown schedules.
“We are very excited to undertake this initiative along with Buchanan Partners and The Pinkard Group. We have had long relationships with the principals of both firms, and have the greatest respect for their ability and integrity,” said Great Point Investors’ Principal Joe Versaggi. “The Washington, DC metropolitan area for-sale residential market is one of the nation’s strongest, and we are very fortunate to be able to invest with such a seasoned team of professionals.”
“With the projected increases in local household formations and job growth, the Washington, DC metropolitan area will continue to have a substantial demand for an ongoing supply of new housing options, and we plan to be an active participant in the supply chain,” noted Russ Gestl, Executive Vice President with Buchanan Partners and the Chief Operating Officer of the fund. “The combination of this institutional capital with our local experience, reputation, and market knowledge puts us in an enviable position for identifying, creating, and acquiring residential land development opportunities in both infill and suburban locations.”
Bob Buchanan, a Principal with Buchanan Partners, stated: “Not only is this a terrific opportunity for our company and the experienced professionals who have stuck with us over the years, but this kind of institutional backing will open up opportunities for Buchanan Pinkard Residential to explore large and complex investments in the planning stages where we can generate the most value as a developer.” BPR will leverage the residential expertise that Buchanan Partners established developing Spring Ridge, a 1,800-residence planned unit community in Frederick County, MD, as well as its planning of The Arcola Center, a 400-acre mixed-use development in Loudoun County, VA.
Added Bob Pinkard of The Pinkard Group: “Our research shows that the entitled lot supply in our target markets will be dwarfed by forecasted housing demand in the region, and builders are actively seeking out long-term contracts to take down finished lots in order to satisfy that demand.”