ST, CHARLES, MD–FCP has sold an apartment portfolio here for $302 million. The 11-asset, 1,731-unit portfolio traded to Strata Equity Group. The sale represented the largest group in the company's so-called Apartments of St. Charles portfolio.
This transaction is Strata Equity Group's first investment into the Mid-Atlantic region. The San Diego-based company specializes in acquiring land and preparing it for development, and in investing and managing multi-family residential, commercial/retail properties, single family residential, and renewable energy projects. The company's operations are primarily located in the Southwestern US markets.
St. Charles is a master planned community located 13 miles from the DC Beltway.
CBRE's Mike Muldowney, Michael Rudolph and the other members of the CBRE Mid-Atlantic Multifamily Investment Sales and Debt and Structured Finance teams handled the marketing, sale, and financing of the portfolio.
FCP acquired the portfolio in December 2009 as part of its $43.6 million acquisition of American Community Properties Trust, which FCP subsequently privatized. The initial APO purchase included 3,200 multifamily units, 230,000 square feet of office and more than 4,500 acres of land entitled for over 11,000 residential units and five million square feet of commercial development. Most assets were located in St. Charles, MD and Puerto Rico.
Over the past eight years, FCP repositioned and sold portions of the APO portfolio. Early dispositions included interests in a Florida homebuilder and apartments in Baltimore and Richmond. In August 2017, FCP sold 2,400 acres of residential property entitled for more than 7,000 homes in St. Charles to Lennar Corp. for $53.7 million. Other dispositions included the $13 million sale of land to CPV for the construction of its 725-megawatt natural gas-fueled power plant and the $9.2 million sale of land to Aggregate & Dirt Solutions and Clean Earth of Greater Washington for industrial recycling.
Today FCP maintains ownership of five apartment communities and more than 288 acres zoned to accommodate 208 market-rate and 180 active-adult apartments, 160,000 square feet of neighborhood center retail uses and over 2 million square feet of heavy industrial use.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
