WASHINGTON, DC—Federal Capital Partners has bought a majority stake in a six-asset multifamily portfolio in the Washington DC area. The 2,044-unit portfolio is a partly owned by ROSS Cos. and FCP's recap values it at $240 million. It is the largest apartment portfolio transaction in the DC area this year so far, according to FCP's Jason Bonderenko.
ROSS, which is retaining an ownership interest in the portfolio, will continue to provide property management services, intends to fund and complete capital projects. The recapitalization values the portfolio in excess of $240 million. The properties include:
· The Strand, a 394-unit, two high rise buildings in Alexandria, VA. The property, which is close to Landmark Mall, is currently undergoing redevelopment.
· Cambridge Crossing, Lenox Court and Sutton Walk, three adjacent properties totaling 466 units within walking distance of the New Carrollton Metro station orange line and MARC station. New Carrollton is also a planned stop for the proposed purple line light rail system.
· Cypress Creek, a 760-unit building in Hyattsville, MD, that is within walking distance of the West Hyattsville Metro station.
· Summerlyn Place, a 424-unit building in Laurel, MD, that is close to the Laurel Mall, which is currently being redeveloped to include a new Harris Teeter.
FCP plans to invest in capital upgrades for the properties, at varying amounts, Bonderenko, who is VP for residential acquisitions, tells GlobeSt.com.
"We think ROSS did a great job of maintaining and operating the properties and now we want to take them to the next level," he says. The properties at the New Carrollton metro stop, for example, will be receiving about $5 million in upgrades to improve and rebrand the facilities.
"We have targeted improvements throughout the portfolio but we are concentrating in particular on those three properties."
Financing was provided by Wells Fargo and Fannie Mae.
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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.
