Office-turned-apartment building sells for $10M

The 66-unit Argon Apartments at 3805 Cutshaw Ave. sold for $10.2 million. (Jonathan Spiers)

The 66-unit Argon Apartments at 3805 Cutshaw Ave. sold for $10.2 million. (Jonathan Spiers)

Three years after it was converted to apartments, a 1960s-era former office building in the West End is now in the hands of a new owner.

The 66-unit Argon Apartments at 3805 Cutshaw Ave. sold June 27 for $10.2 million, below its asking price of $10.5 million.

City property records list the buyer as CKS Argon LLC. The registered agent for that entity is Sunil Simhal, who listed a residence in Centreville as the entity’s principal office when registering it with the State Corporation Commission in April.

Listing broker Chris Chadwick of Marcus & Millichap described the Argon purchaser as a Washington, D.C. metro-area buyer.

The seller was Daniel Building LLC, an entity tied to Bethesda, Maryland-based developer C.A. Harrison Cos., which transformed the property into apartments in 2014 – three years after a fire damaged its interior.

C.A. Harrison purchased the five-story, 66,500-square-foot building in 2014 for $2.76 million from Daniel Group LLC, which had owned it since 2002.

A city assessment earlier this year valued the property at $8.74 million.

The building had been scheduled for a foreclosure sale in May due to a default on a $400,000 debt payment. C.A. Harrison principal Chris Harrison said at the time that the default resulted from the property being put under contract, adding that the debt owed on the property’s deed of trust would be paid before the auction could be held.

Reached Monday, Harrison declined to comment on the sale.

Following the fire in 2011, C.A. Harrison converted the building to apartments with $6.5 million in financing from the Virginia Housing Development Authority. The $7.5 million project included $1 million in required equity, according to the company’s website.

The 1.3-acre property was listed for sale by Chadwick and Marcus & Millichap colleague Marty Mooradian. Chadwick said the property was listed in conjunction with the 2001 East Apartments in Church Hill, which sold June 5 to Thalhimer Realty Partners for $9.67 million. He said C.A. Harrison was the primary owner of that property.

Chadwick said the buyer was represented by Arthur Nachman, a commercial broker with Long & Foster.

The apartments include one-, two- and three-bedroom units ranging from 560 to 1,200 square feet. Monthly rents range from $955 to $1,655.

Argon is managed by Arlington-based Bonaventure Realty Group, which also manages Southside’s Rockwood Park apartments and Henrico’s Carriage Hill apartments.

Argon is the latest apartment building in Richmond to sell in recent weeks to an out-of-town buyer. Five days before the Argon sale closed, the 10-story Terraces at Manchester at 800 Semmes Ave. sold to a D.C. group for $30.12 million.

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