Penderbrook Apartments: a zoning variance has opened the door to possible condo conversion, which broadens the property's appeal to potential buyers.

Penderbrook had two issues which required special exception from the local Board of Supervisors: (i) when the Penderbrook Community Association was conceived and approved for development, Penderbrook Apartments was stipulated to be a rental property and (ii) the property was constructed with 1.5 parking spaces per rental unit. Therefore, condominium conversion required the property to meet a newer zoning requirement of 1.6 spaces per apartment and removal of the rental property limitation.

W&M Properties and Wien & Malkin identified the best local legal counsel, agreed on a strategy, and worked diligently to win timely approval of a variance from the Fairfax County (Virginia) Board of Supervisors regarding a required parking allocation. The variance enables a condominium conversion of the complex "as of right."

"This greatly broadens the appeal of Penderbrook Apartments for potential buyers," says Vincent Sultana, W&M vice president for the residential portfolio, who is responsible for the rezoning project. "A condominium converter was the lead bidder for Penderbrook before the zoning issues arose. But even if a converter is not the winning bidder, the variance permitting conversion adds value to a conventional apartment complex as a potential exit strategy for any future owner."

A Clear Case Is Made

Mr. Sultana explains that W&M needed to make its case clearly to Fairfax County zoning staff members, who then endorsed the needed amendment to the Planning Commission. Once the commission agreed to a variance, the Board of Supervisors rendered the final decision.

"Anthony Malkin (W&M president) traveled to Virginia with me, met with local counsel and our local County Supervisor, and satisfied himself that our case would be made as effectively as possible," says Mr. Sultana. "Thereafter, it was up to me and W&M's Tom Panagos, who supervises the property, to give this matter the highest priority because getting the job done maximizes value for our investors."

Penderbrook Apartments, which is 96% occupied, was acquired by a Wien & Malkin partnership in 1996. The property is part of a master-planned golf course community in the suburb of Fair Oaks, some 20 miles west of Washington, D.C. At press time, close to 90 sales books had been issued to potential buyers.