HYATTSVILLE, MD—Houston-based Camden Property Trust sold two suburban Maryland apartment properties in the second quarter, according to a regulatory filing with the Securities and Exchange Commission. According to the filing:
In July 2016, we sold one dual-phase property and one operating property which were included in operating properties held for sale at June 30, 2016, comprised of 775 apartment homes located in Landover and Frederick, Maryland for approximately $171.0 million.
The REIT didn't identify the properties in the filing but a source told GlobeSt.com that the properties are Camden Summerfield, located at 8100 Gibbs Way in Hyattsville and Camden Clearbrook, located at 6450 Mercantile Dr in Frederick. The source says the properties sold for, respectively $110 million or $230,126 per unit and $61 million, or $205,387 per unit.
Atlanta-based Centennial Holding Co acquired Camden Summerfield, the source said.
CFO Alex Jessett discussed the motivations behind the sales in the recent earnings call. To date, the REIT has sold about $840 million of assets, most of which have been 20 to 30 years old with lower rents and higher CapEx than the rest of its portfolio, he said, per a Fair Disclosure transcript.
However, our most recent sales did include two assets in suburban Maryland which were less than 10 years old. We elected to dispose these relatively younger assets to both reduce our exposure to their respective submarkets and to mitigate the additional DC Metro NOI exposure that will result from the new development communities which begin leasing in 2017.
Chesapeake Prepays Courtyard Washington Capitol Hill/Navy Yard Loan 
ANNAPOLIS, MD-Chesapeake Lodging Trust will prepay the mortgage loan on Courtyard Washington Capitol Hill/Navy Yard on August 1, 2016, according to its second quarter earnings. The REIT is evaluating all of the properties in its portfolio for capital reallocation purposes, according to CEO Jim Francis. It is looking for properties that may deliver diminishing returns for potential sales as well as refinancing debt on other assets.
But it is also refinancing properties as recent trends suggest. Besides the Courtyard Washington Capitol Hill/Navy Yard, Chesapeake Lodging Trust prepaid its mortgage loan secured by the Hyatt Regency Boston, which had an outstanding principal balance of $88.2 million through its revolving credit facility. Then, last month it secured a new 10-year, $150 million, fixed-rate mortgage loan on the property from MetLife. The loan carries a fixed interest rate of 4.25% at a 30-year rate.
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HYATTSVILLE, MD—Houston-based Camden Property Trust sold two suburban Maryland apartment properties in the second quarter, according to a regulatory filing with the Securities and Exchange Commission. According to the filing:
In July 2016, we sold one dual-phase property and one operating property which were included in operating properties held for sale at June 30, 2016, comprised of 775 apartment homes located in Landover and Frederick, Maryland for approximately $171.0 million.
The REIT didn't identify the properties in the filing but a source told GlobeSt.com that the properties are Camden Summerfield, located at 8100 Gibbs Way in Hyattsville and Camden Clearbrook, located at 6450 Mercantile Dr in Frederick. The source says the properties sold for, respectively $110 million or $230,126 per unit and $61 million, or $205,387 per unit.
Atlanta-based Centennial Holding Co acquired Camden Summerfield, the source said.
CFO Alex Jessett discussed the motivations behind the sales in the recent earnings call. To date, the REIT has sold about $840 million of assets, most of which have been 20 to 30 years old with lower rents and higher CapEx than the rest of its portfolio, he said, per a Fair Disclosure transcript.
However, our most recent sales did include two assets in suburban Maryland which were less than 10 years old. We elected to dispose these relatively younger assets to both reduce our exposure to their respective submarkets and to mitigate the additional DC Metro NOI exposure that will result from the new development communities which begin leasing in 2017.
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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.
