GAITHERSBURG, MD- RST Development Inc. has acquired the West Deer Park Apartments, a 198-unit multifamily community situated on a nine-acre parcel near the I-270/I-370 interchange, for $23 million. A joint venture involving Philadelphia's AMC Delancey Group Inc. and Ross Investments Inc. of Bethesda, MD sold the seven-structure property.
It was about a year-and-a-half ago that the sellers acquired West Deer for approximately $17.23 million. They spent approximately $3 million on upgrades. The new owner plans to convert the apartments into townhouses.
"With the disposition of West Deer Park Apartments, our venture accomplished all of our investment objectives well ahead of projections," says Delancey Group president and CEO Kenneth P. Balin. "Although as a company, we consistently take a long-term investment approach, market conditions were favorable for divestiture for this particular asset."
The purchase of West Deer in 2004 had marked AMC Delancey's entrée into the greater Washington, DC market, and the firm--which focuses on co-investing with real estate operating partners with value-added strategies--has since expanded its holdings in the area. "We're actually looking in both Washington, DC and Baltimore, and Northern Virginia," Balin tells GlobeSt.com. "These are good, long-term growth markets."
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