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Source: Blackstone Pays $90M for Silver Spring Apartment

SILVER SPRING, MD—The seller is Greystar Real Estate, which also sold a 32-property portfolio to Blackstone at the end of last year.

By Erika Morphy | erikamorphy | | Updated on March 21, 2016
The Warwick The Warwick
SILVER SPRING, MD—Charleston, SC-based Greystar Real Estate is cashing in on an acquisition it made here in 2011: its $65.1 million acquisition of The Warwick, a 392-unit, 19-story apartment building that borders Sligo Creek Park. Greystar has sold the property to Blackstone for $89.8 million, or $229,082 per unit and, according to a source, the cap rate is approximately 5.2% based on the past year’s performance.  It does not appear that this asset is part of the 32-property, 10,399-unit multifamily portfolio Blackstone bought from Greystar Real Estate Partners for $2 billion in December 2015. Assets in that portfolio were located in Seattle, San Francisco, Los Angeles, South Florida, New York, and Boston metro areas. As part of the Warwick deal Fannie Mae provided a $68.1 million loan. After Greystar acquired the property in 2011 from Vista Management, it invested $11 million in an 18-month long renovation to upgrade a number of the apartment homes. Greystar also acquired the  Aventine Fort Totten around the same time it acquired the Warwick in 2011. That property, as well, appears to be under contract , according to a source, for $81.2 million, or $263,636 or so per unit.

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