GREENBELT, MD–A source tells GlobeSt.com that the 591-unit Gates of Cipriano apartment complex has traded for $82.3 million, or $139,171 per unit. The buyer and seller respectively, are BDMG of Baltimore and the Laramar Group in Chicago. GlobeSt.com contacted both companies for comment but the inquiries were not returned in time for publication.
The apartment complex is located at 8501 Greenbelt Rd. It was built in 1966 and is close to full occupancy. The last time it traded, in 2007, it sold for $74.2 million.
Separately, Delta Associates' first quarter report on multifamily asset class performance in the Washington DC area, says that recent apartment investment activity remains healthy and valuations for new transactions in terms of cap rates and per-unit prices are strong.
It wrote:
With $2.58 billion of multifamily Class A building transaction vol ume in 27 trades in 2015, sales volume is already nearly 50% higher than 2014. The average per-unit price for 2015 sales was 10.7% higher than 2014 for lowrise units (at $267,069), while high-rise prices were down 13.0% from 2014 (at $399,242). This decline is due to two high-priced sales that occurred in 2014 in the District. Through March 2016, five Class A multifamily sales have closed (two low-rise properties and three mid-/high-rise properties) with a combined value of $448 million. At this time last year, $324 million of multifamily Class A building transactions occurred in three trades.
Interestingly, it also noted that total return on apartment investment as reported by NCREIF in the Washington market continues to track below the national average.
The annual total return for 2015 was 5.16%, significantly off the cyclical peak of 28.64% in 2010 and lower than other cities in the Mid-Atlantic. Washington was early to recover from the 2009 recession and also early to peak in investment returns. Investors seeking the risk-adjusted safety of Washington apartments bid up prices even as rent growth was slowing – contributing to lower overall returns.
GREENBELT, MD–A source tells GlobeSt.com that the 591-unit Gates of Cipriano apartment complex has traded for $82.3 million, or $139,171 per unit. The buyer and seller respectively, are BDMG of Baltimore and the Laramar Group in Chicago. GlobeSt.com contacted both companies for comment but the inquiries were not returned in time for publication.
The apartment complex is located at 8501 Greenbelt Rd. It was built in 1966 and is close to full occupancy. The last time it traded, in 2007, it sold for $74.2 million.
Separately, Delta Associates' first quarter report on multifamily asset class performance in the Washington DC area, says that recent apartment investment activity remains healthy and valuations for new transactions in terms of cap rates and per-unit prices are strong.
It wrote:
With $2.58 billion of multifamily Class A building transaction vol ume in 27 trades in 2015, sales volume is already nearly 50% higher than 2014. The average per-unit price for 2015 sales was 10.7% higher than 2014 for lowrise units (at $267,069), while high-rise prices were down 13.0% from 2014 (at $399,242). This decline is due to two high-priced sales that occurred in 2014 in the District. Through March 2016, five Class A multifamily sales have closed (two low-rise properties and three mid-/high-rise properties) with a combined value of $448 million. At this time last year, $324 million of multifamily Class A building transactions occurred in three trades.
Interestingly, it also noted that total return on apartment investment as reported by NCREIF in the Washington market continues to track below the national average.
The annual total return for 2015 was 5.16%, significantly off the cyclical peak of 28.64% in 2010 and lower than other cities in the Mid-Atlantic. Washington was early to recover from the 2009 recession and also early to peak in investment returns. Investors seeking the risk-adjusted safety of Washington apartments bid up prices even as rent growth was slowing – contributing to lower overall returns.
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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.
