San Diego's Hampstead Scoops Up Yet Another Local Asset

Homestead Apartments

WASHINGTON, DC—A 55-unit apartment building in Washington DC’s Brightwood submarket traded in January 2016 after an extensive marketing campaign on behalf of the numerous buyers interested in the property. The building, Homestead Apartments, located at 812 Jefferson Street NW, traded for $4.75 million, or $86,000 per unit (based on 55 units; the building actually has a Certificate of Occupancy for 58 units). The buyer was San Diego-based Hampstead Partners, which acquired a portfolio of three Brightwood apartments totaling 130 units in 2013 from Bernstein Management Corp., among many other transactions in the area. For this latest property deal, the company partnered with Ray Nix, president of UrbanMatters Development Partners. The seller was a JV between the locally-based UIP and JCR Cos., which acquired Homestead Apartments in 2010. The following year, the two companies partnered again to acquire another two properties in the neighborhood, paying a total price for the so-called “Brightwood Trio” of $9.9 million. Like neighboring Petworth, investor demand for value-add apartment buildings in Brightwood is growing, W. Kyle Tangney, senior director of Bethesda, MD-based Greysteel told Globest.com. Tangney brokered Homestead transaction. The tenants at the Homestead “had a plethora of buyers to choose from, according those support the building as an affordable project,” he said. They ultimately decided to move forward with Hampstead because of its commitment to and experience with affordable housing in the Washington DC-Baltimore market, he said. “The buyers plan to invest $4.5 million to rehab the property,” once the financing is secured, according to Tangney. Hampstead’s Washington DC/Baltimore Portfolio

Hampstead also owns Valencia Apartments in Brightwood

For a small, private investor headquartered across the country, Hampstead has accumulated quite a presence in the Washington DC-Baltimore corridor. The three Brightwood assets it acquired in 2013 — the Concord Apartments, Valencia Apartments and Vizcaya Apartments — are located at 5807-5825 14th Street, N.W., 1388 Tuckerman St., NW and 5922 13th Street, NW. Hampstead acquired them using short term financing from Citi Community Capital, Affordable Investment Advisors, the DC Department of Housing and Community Development and Local Initiatives Support Corporation. It secured permanent financing in January 2015 for the apartments, which by then had been rebranded as The Brightwood Portfolio. Hampstead also budgeted $10 million for improvements. All together, it owns about 13 affordable housing properties in the area. A few other examples are: R Street Apartments , a historic 124-unit, five-building apartment complex also known as Wardman Row. Hampstead invested in a $7.8 million rehab, which included the addition of six market-rate units, bringing the total number of units up to 130. Calloway Row , a mixed-use redevelopment of six blocks of distressed affordable housing on Baltimore City’s West Side next to the University of Maryland’s 800,000-square foot Bio Park. Charles Landing , a 60-unit property in Indian Head, MD, which serves residents at or below 60% area median income. Clay Courts , a 144-unit development for residents at or below 60% area median income, located in Baltimore. Cumberland Arms , a 69-unit mixed use building in historic Downtown Cumberland, MD. It has ground floor retail and the apartments geared toward senior housing. Woodside Gardens , a 144-unit development in Annapolis, MD, for residents at or below 60% area median income.