Investing, Developing, Building, and Managing Real Estate for Over 60 Years
Founded in 1959, Artery Capital Group is a family office with over 60 years’ experience in developing, building, structuring, and managing residential, retail, and commercial real estate in the Washington, DC area. Artery arranges investment capital, including debt and equity, and provides asset management services for investments in commercial and for-sale residential real estate. Artery has partnered with organizations including The Charles E. Smith Companies (now JBG Smith), C-III Capital Partners, Pinnacle Hotel Management Company, NVR, Inc., Beazer Homes USA, and Richmond American Homes. Artery has relationships with investors, general contractors, engineers, brokers, government officials, attorneys, accountants, consultants, property managers, and other operating professionals. A streamlined decision-making process provides for fast execution. As a Principal, Artery and its affiliates have constructed over 12,000 single family homes, entitled more than 5,000 residential lots, and owned controlling interests in 13,000 apartments, 3 million square feet of office/flex space, and a grocery-anchored neighborhood shopping center.
HOMEBUILDING
Between 1960 until it ceased internal homebuilding operations in 1994, affiliates of Artery constructed over 12,000 homes in the Washington DC suburbs. At its peak in the late 1980s, Artery was constructing and selling over 700 homes per year, with a focus on entry level homes. Artery’s innovative designs and attention to the buyer’s desires enabled it to become one of the largest homebuilders in the Washington, DC area. Affiliates of Artery now arrange financing for homebuilders operating in the Washington, DC area.
APARTMENTS
Between 1962 until it sold its remaining apartment portfolio in 2006, affiliates of Artery developed or acquired and renovated over 13,000 apartment units. The disposition of the Artery apartment portfolio included the tax-advantageous contribution of several communities to Equity Residential Properties Trust (ERP) in exchange for an interest in ERP that is still maintained by affiliates of Artery. Henry H. Goldberg, the founder and owner of Artery, was a member of the Board of Directors of ERP for eight years.
Artery was one of the first companies to offer large washers, dryers, and microwaves in its apartment units. Artery’s high customer satisfaction ratings from its renters benefited its homebuilding operations as many renters at Artery properties eventually bought a house at an Artery development. Artery was a marketing innovator, offering unique discounts for referrals and military personnel. On the financing side, Artery was an innovator in the use of low-cost HUD financing and tax exempt bonds, which enabled it to earn a higher rate of return than competitors.
OFFICE BUILDINGS
Between 1983 and 1993, Artery partnered with the Charles E. Smith Companies (now JBG Smith) to develop four Class A office buildings in the Washington, DC suburbs: 7200 Wisconsin Avenue (Artery Plaza), Arlington Courthouse Plaza II, One Democracy Plaza, and Fairfax County Government Center. Artery’s buildings featured a very innovative design; Artery Plaza was chosen as the Most Outstanding New Office Building of 1986 by Montgomery County, Maryland. Artery sold its office building portfolio before the financial crisis of 2008.
LAND DEVELOPMENT
Between 2000 until it sold its remaining land under development in 2013, Artery affiliates formed strategic partnerships with major national and local homebuilders to acquire and develop residential subdivisions comprising over 5,000 lots in the Washington, DC suburbs. Artery managed the entire land development process including site selection, acquisition, design, programming, obtaining land use approvals, budgeting, obtaining financing, constructing all site improvements, and marketing and selling the finished lots. Affiliates of Artery continue to own the rights to collect annual “front foot benefits” (deferred payments for water and sewer infrastructure installation) from almost 2,500 homeowners in Maryland, providing a predictable long-term source of recurring cash flow.
RETAIL
In 2000, Artery affiliates developed a Safeway-anchored 125,000 square foot Class A shopping center in Germantown, Montgomery County, Maryland, adjacent to a 328-unit apartment complex and 228 residential lots also developed by Artery affiliates. Artery sold the shopping center in 2017.
LODGING
In 2003, in partnership with Pinnacle Hotel Management Company, Artery developed the Homewood Suites by Hilton Columbia, a 150-room hotel that remains under the ownership of an Artery/Pinnacle joint venture. The hotel consistently ranks at the top of its competitive set.
OTHER INVESTMENTS
In addition to real estate, Artery’s investment affiliate owns a portfolio of marketable securities.