ARLINGTON, VA - Erkiletian Development Company is pleased to announce it has secured funding and subsequently broken ground for development of The Sur, a luxury 360‐unit Class A multifamily development in the Potomac Yard submarket of Arlington, VA. Situated on a 1.67-acre site at 3400 Potomac Avenue, The Sur will encompass 12 stories and will include 16,503 square feet of retail space and 25,000 square feet of amenities that will provide sweeping views of the Potomac River and downtown D.C. With completion anticipated for April 2020, The Sur is poised to bring one of the most unique and architecturally stunning nature-inspired designs to the local market.
“We are pleased to have secured capital resources and commenced development for this truly unique and exciting project,” said Stefanie Erkiletian, president of Erkiletian Development Company, a privately owned company specializing in the development, construction, and ownership of multifamily communities and mixed-use developments in the Washington, D.C. area.
Erkiletian added: “We believe that The Sur will deliver a highly sought after product that will generate interest from discerning professionals seeking luxury living in a prime D.C. location. In recent years, this submarket has seen an amazing transformation into a thriving 24/7 live, work, play environment as billions of dollars of capital investment has been made. Our team at Erkiletian Development Company is proud that we have the opportunity to be a part of this community and feel that once completed we will have raised the bar for the multifamily sector not only for this region, but on a national basis as well.”
One of Erkiletian’s key funding sources for the project came from PCCP, LLC. PCCP provided $35.89 million in preferred equity for the project.
“We saw this as a solid opportunity to provide preferred equity for The Sur which would enable Erkiletian to embark on construction immediately. We are discerning regarding our capital investments and this high quality project with its strong sponsorship met our criteria,” said John Randall, partner with PCCP.
The HFF team Walter Coker, Brian Crivella and Susan Carras arranged the preferred equity through PCCP while U.S. Bank provided the construction loan. All told, total development costs for the project are in excess of $148 million.
Inspired by Big Sur, a rugged stretch of California’s central coast, The Sur will meld sustainable and rustic features to create a warm and sophisticated atmosphere with a modern twist. The units will feature high-end finishes throughout and will range in size from 557-square-foot studios to 1,419-square-foot three-bedroom units. In addition to several ground-level retail stores, the project will feature more than 25,000 square feet of amenities which include:
Outdoor landscaped oasis inclusive of large boulders, moss, forest trees, fire pit and unique seating areas that gives the feel of a national park.
Eighth floor Party Room with a fireplace, bar, large table which is connected to a large outdoor terrace with Potomac River and National Monument views
Rooftop spa oasis with cabanas, natural landscaping, water element surrounding seating areas and fire pits
State-of-the-art fitness center and adjacent outdoor lawn for Yoga as well as an area to gather for movie nights
Floating fire place and lounge with “worm hole” seating in the south lobby
Dog spa and wash area
Conference room/business center enclosed in a wood and glass structure in the north lobby
A former railroad switch yard, Potomac Yard encompasses 295‐acres of land along the Potomac River. The Sur is within the National Gateway mixed‐use development, a 40‐acre portion of Potomac Yard that includes a residential, office, and retail assets. It is also well-located just south of the established Pentagon City and Crystal City markets, just north of Alexandria, VA, and minutes from Reagan National Airport and downtown D.C. The Sur is accessible to Washington, D.C. and the Rosslyn‐Ballston Corridor can be reached in just eight minutes (three Metro stops) by way of the Crystal City Metro Station which residents can walk to or take a designated public shuttle which loops by the Property every six minutes. Additionally, across the harbor from The Sur is the newly opened District Wharf and MGM National Harbor. In 2021, the Potomac Yard Metro station will be delivered, providing Metro access within a half mile south of The Sur. In addition, a Harris Teeter (one block away) and over 1.5 million square feet of retail, including Barnes and Noble, Target, Best Buy, and Regal Cinemas are all within a short walk of the property.
About Erkiletian Development Company: For 50 years, Erkiletian has developed, constructed and owned properties that have earned the firm a reputation as one of the most trusted names in the Washington D.C. real estate and business community. Today, its portfolio of residential, commercial and mixed communities is proof of its dedication to creating pleasing and effective environments that flourish and grow into desirable destinations. Founded by Myron (Mike) P. Erkiletian, the firm remains a family-owned business that is guided by the principles he set in place: to develop, build and invest in properties that define a region; to employ building and management practices that are responsible and forward thinking; and to be committed to integrity in every relationship we make. For more information visit www.erkiletian.com
About PCCP, LLC: PCCP, LLC is a premier real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has approximately $6.8 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco and Los Angeles, PCCP has a proven track record for providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP originates and services each of its investments, ensuring that clients benefit from added value and outstanding investment returns. Since its inception in 1998, PCCP has successfully raised, invested and managed over $14.8 billion of institutional capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with proven operators seeking fast and reliable capital. Learn more about PCCP at www.pccpllc.com