BETHESDA, MD–San Diego-based Fairfield Residential has added to its stable of apartment buildings in suburban Maryland with its recent acquisition of Berkshires at Rock Spring for $63.8 million, or $165,285 per unit. The seller of the 386-unit, 4-story apartment building was the Berkshire Group. The last time the property, which was built in 2002, traded was in 2011 for $73.8 million.
Fairfield Residential owns a number of apartment buildings in the area, including
7001 Arlington at Bethesda Apartments; in Gaithersburg it owns Parklane Apartments and 17 Barkley Apartments; it owns The Barrington Apartments in Silver Spring; and Oakfield Apartment Homes in Wheaton.
While talk of a multifamily bubble now appears to be a permanent part of the landscape, fundamentals show Maryland's apartment market remains solid. According to Delta Associates, at the end of Q1 of this year suburban Maryland's annual absorption had increased slightly from a year ago and the stabilized vacancy increased 110 basis points from a year ago.
Pipeline increased slightly over the past 12 months and deliveries are expected to increase by 3% in the 12-month period ending March 2018 compared to what came online over the past year. Delta Associates also reported that rising rents in low-rise buildings offset falling high-rise rents. resulting in a small combined increase.
BETHESDA, MD–San Diego-based Fairfield Residential has added to its stable of apartment buildings in suburban Maryland with its recent acquisition of Berkshires at Rock Spring for $63.8 million, or $165,285 per unit. The seller of the 386-unit, 4-story apartment building was the Berkshire Group. The last time the property, which was built in 2002, traded was in 2011 for $73.8 million.
Fairfield Residential owns a number of apartment buildings in the area, including
7001 Arlington at Bethesda Apartments; in Gaithersburg it owns Parklane Apartments and 17 Barkley Apartments; it owns The Barrington Apartments in Silver Spring; and Oakfield Apartment Homes in Wheaton.
While talk of a multifamily bubble now appears to be a permanent part of the landscape, fundamentals show Maryland's apartment market remains solid. According to Delta Associates, at the end of Q1 of this year suburban Maryland's annual absorption had increased slightly from a year ago and the stabilized vacancy increased 110 basis points from a year ago.
Pipeline increased slightly over the past 12 months and deliveries are expected to increase by 3% in the 12-month period ending March 2018 compared to what came online over the past year. Delta Associates also reported that rising rents in low-rise buildings offset falling high-rise rents. resulting in a small combined increase.
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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.
