(To read more on the multifamily market, click here.)
GAITHERSBURG, MD-Fairfield Residential has sold a 684-unit, garden-style multifamily building here to a joint venture between Federal Capital Partners and Angelo, Gordon & Co. The price has not been disclosed but apartments in this market can range from $100,000 to $120,000 per unit depending on the property's condition and whether any deferred maintenance must be done, according to a source active in this market.
At 684 units, Grove Park is among the larger apartment dwellings in this market. It is located at the corner of Quince Orchard and Clopper roads, close to major highways, a metro and MARC station.
John Shaffer, in the company's western division corporate office, tells GlobeSt.com, "It is always a good time to sell if you can find the right buyer to pay the right price." Fairfax might invest again in the market he says. "We are developing all over the country; certainly this is one market we will continue to look at."
There have been a number of renovations made to the building over the past five years, according to a statement by the buyers. This includes a new clubhouse/leasing center, renovation of the units' interiors and reconditioning of many of the building's systems. FCP is planning to invest an additional $4 million on signage, landscaping, building entrances and paving, according to FCP partner Alex Marshall.
Other value-add improvements the company could make include development of some or all of the 875 additional residential units for which the parcel on Clopper Road is zoned. Grove Park is located on two parcels of 40 acres. The property has been recommended for potential redevelopment and/or Town Center designation, according to the Gaithersburg Master Plan.
Freddie Mac provided the financing for the transaction.
Marshall tells GlobeSt.com that it is working with Angelo, Gordon on the acquisition of an additional 450-unit multifamily property that may close within 90 days, if due diligence is satisfactory.
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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.
