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ROCKVILLE, MD-The Pavilion Apartments community, a 492-unit property developed in 1967, has come under contract to be sold for an estimated $117 million. While the deal has not yet been finalized, Home Properties plans to sell the apartments to Triton Real Estate Partners, which will reportedly convert the high-rise complex into a condominium development. Home properties acquired Pavilion--which, along with the 3.3-acre parcel it occupies, has a current assessed value of $43 million--for $25.3 million in 1999.

Located at 5901 Montrose Rd. off Rockville Pike, Pavilion has been upgraded through capital improvements over the last few years. According to Home Properties' 2004 Annual Report, the company spent an aggregate $53.8 million on the property, including acquisition costs.

Disposition of Pavilion, however, is no indication that the Rochester, NY-headquartered apartment REIT is exiting what is a very vibrant market. "The Greater Washington, DC and Baltimore areas are markets that we are very interested in," Charis W. Warshof of Home Properties' investor relations tells GlobeSt.com. "Right now our second largest market is suburban Washington, DC and suburban Baltimore is our fourth. But from time to time, we do sell properties in markets we are still interested in; we typically purchase a lot more than we sell." With regard to uses from the impending Pavilion transaction, Warshof confirms that "it is often the case that we will use funds to purchase something else in the same area."