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Local Buyer Sees Rent Upside in 49-Unit Deal

TAKOMA PARK, MD-A local investor pays $4.3 million for a four-building package of apartments, positioned in an area without rent controls.

By Erika Morphy | Updated on September 12, 2006

TAKOMA PARK, MD-A class C, four-building multifamily portfolio here–a locale that straddles Montgomery and Prince George’s counties–has traded for $4.3 million, sold by Summit Management, a private partnership in Silver Spring, to a private investor in the Washington, DC area.

The 49-unit asset is located on the Prince George’s County side of Takoma Park–an important distinction because it is not rent controlled, according to David Weber, a broker in Marcus & Millichap Real Estate Investment Brokerage Co.’s Washington, DC office. Montgomery County, on the other hand, does have rent control laws in that portion of Takoma Park, he tells GlobeSt.com. Income levels as well as rents tend to be higher in Montgomery County so multifamily investors try to position themselves as close as possible on the fringe of rent-controlled areas.

That said, Takoma Park is a robust submarket, Weber says, with a strong volume of trades in both counties. The properties, acquired by local investor Eric Denchfield, are typical of the multifamily properties in the area, which tend to be smaller buildings with six to 40 units.

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