(To read more on the multifamily market, click here.)
GREENBELT, MD-Charlestowne North Apartments, a 178-unit high rise here has traded for $18 million, or $100,000 per unit. The deal, which only finalized yesterday, marked the highest price ever paid for a Prince George's County hi rise, according to the Coldwell Banker Commercial Ideal Realty Group in Potomac, which represented both buyer and seller in the transaction.
The seller was an entity controlled by the publicly traded Bresler and Reiner, based in Rockville. It had originally built the property in 1967. The buyer was controlled by the Bethesda-based Ross Investment and Development.
Team leader Dean Sigmon tells GlobeSt.com that Ross Investment and Development plans to spend about $2.5 million, or $15,000 per unit, in renovations to bring the class B property up to B plus or A minus quality. Currently the building at 8150 Lakecreast Dr. receives rents that average around $1.51 per sf. A large two-bedroom would be rentable for $1,300.
Plans call for rents to rise to $1.65 per sf; raising rents by some $100 to $150 per unit, Sigmon says. The closest comparable high rise in the same submarket is Towers of Westchester Park, according to Sigmon. Rents range from $970 for efficiencies to $1,400 for two bedroom units. Raising the rents will bring Charlestowne more in line with market rates, he says.
The eight-story building consists of 15 efficiencies that are about 500-sf, 104 one bedrooms, which span about 650-sf, 15 one-bedroom-plus-den units that are 750-sf, and 44 two-bedrooms that range between 850-sf to 950-sf depending on where they are located in the building. "This is a great repositioning opportunity for the buyer," Sigmon says. "The property is already in fantastic shape."
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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.
