(Read more on the multifamily market.)
ROCKVILLE, MD-An ambitious public-private partnership here is nearing completion with the developer selling off three of the four main residential components. Rockville Town Square developer RD Rockville LLC, a joint venture between Ross Development & Investment and Danac Corp., has sold the Lunette, the Venetian and the Fenestra to an affiliate of CIM Group, a California-based real estate investment company with a regional office in Bethesda.
The buildings traded hands at an undisclosed price, according to Mark Ehlinger, director of Sonnenblick Goldman, which arranged the sale. A fourth building is currently being sold as condo units, he tells GlobeSt.com, some of which have already closed.
Ehlinger does not know what CIM Group's plans are for the three buildings--they are designed either be marketed as condos or as a multifamily project. The three together total 492 residential units along with above ground-floor retail space. The fourth residential/retail building, the Palladian, has 152 residential condominium units above ground-floor retail space.
Earlier this year Federal Realty Investment Trust acquired the retail component of the buildings and has since been leasing it to local and national retailers including Starbucks, a Super Fresh gourmet-concept grocery store, CVS Pharmacy, Gold's Gym, Aveda Day Spa and several restaurants. The four residential/retail buildings come with close to 2,000 parking spaces, half of which have been turned over to the city for public use.
The three-building residential sale marks the closure of the last major commercial component of the 12.5-acre Rockville Town Square. Local government participation in the project included the development of Montgomery County's new flagship library--the anchor of the development; a community arts and innovation center owned by the city of Rockville; and a football field-sized town square with seating, landscaping, and fountains.
In an earlier interview with GlobeSt.com, Rockville Mayor Larry Giammo said that the $320-million project received $100 million in government funding, including $50 million from the city of Rockville; $40 million from Montgomery County; $3 million to $4 million from the State of Maryland and the remainder from the federal government.
Rockville Town Square is also the first phase of a more extensive, 60-acre redevelopment plan called Rockville Town Center.
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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.
