Elevation Financial Group, a senior and multifamily housing provider, announces the acquisition by Elevation Real Property Fund VIII of Sommerset Retirement Community in Sterling, Virginia. The asset was acquired for $13.65 million.

The property previously operated as an independent living facility with dining, transportation, and housekeeping services. Elevation will reimagine the 102-unit property, originally opened in 1987, into senior apartments. The capital expenditure plan includes significant upgrades to units, most of which still feature original 80’s and 90’s vintage appliances, paint, cabinets and counters. In addition to the unit upgrades, the property will undergo a major refresh including paint, furniture and lighting throughout common areas as well as improved maintenance of outdoor areas. Elevation will also invest in improving major systems including security, plumbing, air conditioning and heat, bringing new life to the entire property.

This transaction is the first time the property has changed ownership since its original development, trading well below comparable assets in the area. Due to the distressed nature of the asset, this “hidden gem” was discovered by Elevation in the wealthiest county in the country, Loudoun County, Virginia, which boasts a median household income of $179,000.

The Sterling/Ashburn area of Virginia is also home to a rapidly growing tech sector which serves as the world’s largest hub of data centers, hosting over 65% of internet traffic worldwide. The repositioning of the property as a 55+ age restricted senior apartment community will allow Elevation to meet the needs of the growing senior population of the national capital region by providing high quality, elegant housing for middle market seniors. The property will be renamed King’s Reserve Sterling, joining Elevation’s flagship senior apartment brand.

“The opportunity to convert a distressed undervalued building into high-demand senior apartments in a major metropolitan area is exactly the kind of deal that we are focused on delivering for Fund VIII,” said Alexander Mertens, Elevation’s Vice President of Investments. “Sterling’s high barrier to entry and limited undeveloped land make new housing developments rare, with the last major delivery of units in this submarket taking place nearly four years ago. The strength of the submarket is among the best in the country and will create tremendous upside after the execution of our business model. We were thrilled to secure this deal and bring it to close to kick off 2025.”

“This acquisition is a huge win for Fund VIII,” said Chris King, Elevation’s CEO. “Thanks to our team’s diligence and keen eye for undiscovered value, we were able to not only win this deal at a great basis but also secure the zoning approvals and financing in record time, allowing us to close the transaction just weeks after its public financing lockout period ended. Similar vintage assets in the area frequently sell for 250k-300k per door, while Elevation was able to close this transaction at around half that per-unit price, a stellar achievement that will deliver huge value for the Fund at disposition. Simply put, this property has enormous upside for Fund VIII – a true slam dunk by our investments team.”

Throughout the past 18 years, Elevation has invested hundreds of millions of dollars into improving and preserving affordable housing communities throughout the United States, including thousands of apartment homes for seniors. The latest acquisition represents the sixth purchase for Fund VIII, following the successful acquisition of King’s Reserve properties in Indianapolis, IN, Memphis, TN, Sanford, FL, Gwinnett County, GA, and Houston, TX.

About Elevation
Elevation Financial Group, LLC, a real estate private equity company, leads an award-winning group of companies with a focus and mission to acquire, revitalize, and operate affordable apartment communities for independent seniors and families. As a private equity company, Elevation raises capital through private placements to accredited investors and maintains a commitment to low or no loads on capital raised. Through a consortium of companies specializing in real estate investment, property management, and property renovation, Elevation aspires to deliver superior financial returns to its shareholders while making a positive and distinctive impact on the communities served.