FREDERICKSBURG, VA–Philadelphia-based Equus Capital Partners has sold a two-asset, 676-unit apartment portfolio here for $100.5 million to Chandler Management in an all-cash deal.
The two garden-style apartment buildings are the 200-unit Madison Falls Run, which was built in 1989, and Madison England Run, which has 476 units and was built in three phases in 1991, 1999 and 2001. They were 95% occupied at the time of sale.
ARA Newmark's Drew White, Mike Marshall and Jim Pope represented Equus in the transaction. White sold Equus the same portfolio in 2012 for $83.4 million.
White tells GlobeSt.com the Fredericksburg market has seen a run of recent sales including Malvern Lakes, which traded for $154,000 per unit and Kilburn Crossing, which sold for $174,000 per unit.
“Fredericksburg has really good rent growth and metrics — and it's not just Fredericksburg that is doing well but Stafford as well,” he says. “They have good absorption despite the fact that there are some properties delivering.”
Fredericksburg is now part of Washington, DC's MSA, a telling sign that explains the area's popularity. “Before Fredericksburg used to be a city in between the state capitol and Washington, DC; now it's part of the Washington DC metro area,” White says. “People are willing to live further out for a better standard of living.”
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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.
