Kimco sells Pentagon Centre high-rise for $211 million

August 19, 2026 - 08:45

A major property sale just closed in the Pentagon City area, with Kimco Realty unloading a high-rise residential building for $211 million. The transaction, completed this week, marks another significant shift in the local multifamily market. It follows closely on the heels of a separate apartment tower sale in the same neighborhood just two months ago, signaling continued investor interest in the corridor near the Pentagon.

The building, known as Pentagon Centre, includes roughly 400 units and sits above a retail podium. Kimco, a real estate investment trust, has been trimming its multifamily holdings as part of a broader portfolio repositioning. The buyer, a private real estate firm based on the East Coast, plans to keep the property as a rental community, according to people familiar with the deal.

Local brokers note that the sale price works out to just over $500,000 per unit, a solid figure given current interest rates and operating costs. The earlier sale in the same area, which closed in late summer, fetched a comparable per-unit price. That consistency suggests the submarket remains resilient, even as office vacancies and retail challenges persist elsewhere in the region.

The property's location, directly across from a Metro station and within walking distance of Amazon's HQ2 campus, has made it a target for investors betting on continued job growth. Kimco had owned the building for over a decade, during which it underwent several renovations. The company said the sale will allow it to focus on its core shopping center business, which has seen stronger leasing momentum in recent quarters.

No further terms of the deal were disclosed, but county records show the transfer was recorded earlier this week. The new owner is expected to assume management immediately, with no disruption to current tenants.