Federal Capital Partners (FCP) today announced its $5 million investment in the second phase of West Village in downtown Durham, NC. Phase II includes 212 luxury loft apartments and 104,000 square feet of commercial space in this unique historic tobacco warehouse conversion project. FCP’s investment in the second phase will be instrumental in recapitalizing the existing ownership entity (which will maintain an equity interest in the project along with FCP), providing capital to complete the leasing of 30,000 square feet of vacancy in the commercial space. Bell Partners, which provides property management services on behalf of FCP in Phase I and the current ownership of Phase II, will continue to manage the Phase II apartments.
Originally developed in 2007, Phase II of the property is a unique conversion of Liggett and Myers historic tobacco warehouses into Class A apartments, 70,000 square feet of Class A office and 30,000 square feet of street level retail.
“FCP is pleased to have the opportunity to expand its holdings at West Village,” said FCP Managing Partner, Alex Marshall. Mr. Marshall continued, “West Village continues to achieve high occupancies due to its location in the center of downtown Durham, its landmark architectural features and surrounding amenity base. The recapitalization, combined with FCP’s new management control, will allow the property to take advantage of the strong demand from office and retail users who want to relocate to a live-work-play environment.”
BGL Real Estate Advisors, a division of Brown Gibbons Lang & Co., advised the owner and related entities, and worked closely with FCP on the transaction.
FCP now has a controlling interest in 453 apartments, 111,000 square feet of commercial space and 2 parking lots with development potential within West Village.
West Village is a historic renovation with 18th century architectural roots, featuring exposed brick and timber, high ceilings, wood floors, and open floor plans. Residents at West Village find it to be a “walker’s paradise,” with dozens of restaurants, shopping, and nightlife all within a few blocks. Apartments feature wooden columns, Energy Star appliances, and vaulted ceilings. Select homes have granite countertops, washers and dryers, sky lights and floor-to-ceiling windows. Additional amenities at West Village include five courtyards a pool, fitness center, outdoor kitchen and a game room.
About Federal Capital Partners
Federal Capital Partners (FCP) is a privately held real estate investment company that has invested in or financed more than $3.0 billion in assets since its founding in 1999. FCP is seeking debt and equity investments in commercial and residential real estate throughout the Mid-Atlantic region, including Washington DC, Maryland, Virginia, Pennsylvania, the Carolinas, Delaware, New Jersey and West Virginia. FCP buys assets directly as well as through joint ventures with local operating partners through equity, preferred equity or mezzanine debt investments. The firm, based in Chevy Chase, MD, manages $769 million of discretionary capital. FCP is currently investing its second fund, a $529 million commingled, discretionary fund closed in 2012. For further information on FCP, please visit www.fcpdc.com