(Read more on the multifamily market.)
ELKTON, MD-A 156-unit multifamily property in this Maryland submarket bordering the state of Delaware has been placed on the market by MHTJ Enterprises, which is hoping to get $128,205 per unit, or $20 million. The company has also listed a smaller, 108-unit apartment complex located in Downtown Wilmington, DE, for $9.7 million.
Buyers can acquire both properties or as individual transactions, according to Mark Thomson, an associate in the Philadelphia office of Marcus & Millichap, who is representing the seller in both sales. Both are almost fully occupied with a 1% vacancy rate.
The Wilmington complex--which is located within walking distance of Downtown and the nightlife of Trolley Square--has been listed at slightly less than $90,000 per unit. However, the Elkton holding, called Apartments at Iron Ridge, is emblematic of the growing number of multifamilies in this corner of the Mid-Atlantic that are breaching the $100,000 per unit price point. "Elkton can be described as a cross between suburban and rule--it is not quite as developed as Newark," Thomson tells GlobeSt.com.
Deals are typically below $100,000 per unit in both Newark and border properties, he says--but that is changing if they are of a newer vintage. Even that rule of thumb has exceptions: the property next to Iron Ridge sold for $125,000 per unit the year before, Thomson says, and it was seven years older than his current listing, which was built in 1999.
Located at 2950 Stonegate Blvd., Apartments at Iron Ridge is a 166,790-sf property consisting of 16 two-story buildings on a 12.1-acre lot. It has 14 one-bedroom, 78 two-bedroom and 64 three-bedroom units. Thompson says it is a good value add opportunity as the rents are below market. "The owners have focused on maintaining full occupancy rather than aggressively raising rents."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
