(To read more on the multifamily market, click here.)
SUITLAND, MD-Morgan Properties of King of Prussia, PA has added to its multifamily holdings in the Greater Washington, DC area with its $25.5-million acquisition of a 324-unit multifamily property here. Called Silver Hill Gardens, the property is 93% leased at rents that CB Richard Ellis broker Mike Muldowney calls a good value for Prince George's County. "The average rent at Silver Hill is $840 including utilities," he tells GlobeSt.com. "You can't get a three digit rent in [nearby] Montgomery County."
CBRE's Bill Roohan, Mike Muldowney, Michael Rudolph, Brian Margerum and Trish Bonebrake, in the company's multi-housing team, represented the seller, Greenbelt-based Community Realty Co.
The new owner of the 43-year-old property intends to raise rents by $75 to $100 per month, according to Muldowney, after it invests in a rehab of the property. Altogether, Morgan Properties will likely spend between $7,000 to $8,000 per unit in overall improvements, he says
"The previous owners--a family-based operation--had maintained it fairly well but not done much to upgrade the interiors. Given the location and its proximity to the metro, this investment in upgrades will deliver good returns."
Located at 3400 Pearl Dr., the apartments are next to the Suitland Metrorail stop and across the street from the Suitland Federal Center--a nearly three-million-sf complex that is home to the Washington National Records Center of the National Archives, the National Maritime Intelligence Service and is the future home of the US Census Bureau.
There is also significant private sector economic development under way in the area that is expected to drive demand for housing, Muldowney says, most notably the plans to create a town center at nearby Suitland Manor.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
