BETHESDA, MD - Transwestern's Bethesda, Maryland based Mid-Atlantic Multifamily Group announced today that they arranged the sale of the United Investors Portfolio, a four property portfolio consisting of 1,107-units located in Prince Georges County, Maryland. Pennbrooke Terrace (404 units) and Valleybrook Apartments (147 units) are both located in Forestville, MD and Cheverly Terrace (366 units) and Hanson Arms (190 units) are located in Cheverly, MD.
Source: Mid-Atlantic Multifamily Group
Transwestern's Mid-Atlantic Multifamily Group, led by Co-Directors Dean Sigmon and Robin Williams, represented the seller, United Investors Management Corporation. After completion of an extensive marketing process, with strong interest from numerous regional and national investors, the transaction was purchased for $72,000,000 ($65,040 per unit) by a joint venture between Foulger-Pratt Companies and DLJ Real Estate Capital Partners. Foulger-Pratt is a local, family-owned developer of residential and commercial properties, and will serve as the developer, contractor and property manager for the United Portfolio acquisition. DLJ, a New York based real estate investor, provided equity capital for the transaction. The portfolio sale offered a rare opportunity to add significant value creation from exterior and interior building improvements, amenity enhancements, upgraded property management, above market rent growth through in-unit renovations and passing back utilities to the residents.
Built in the 1960's, the communities total nearly one million square feet of rentable space and are located in two distinct submarkets - Cheverly/Landover and Forestville/Suitland in Prince Georges County Maryland. Prince Georges County, Maryland houses 15,550 businesses that employ over 228,000 daily workers. Additionally the county ranks in the top 2% of highest incomes in the United States and in the top 4% of persons with incomes over $100,000 or more. As of 2010, Prince Georges County's population was at its highest level in the county's history at 862,800. The county expects its population to increase by 1.49% annually.
The properties provide excellent access to major transportation routes, metro stations and employment centers. To date, less than 200 apartment unit interiors have been renovated allowing for the purchaser to capitalize on revenue enhancement from major renovations.
According to Delta Associates, the research affiliate of Transwestern, in 2011, job growth, constrained mortgage financing, and continued high prices for housing of all types will put added demand on Class B apartments as one of the more affordable alternatives. Class B apartment rents are expected to increase approximately 7.0% over the next year.
With offices serving the Washington, D.C. region, Baltimore, Northern Virginia and the Tidewater, Virginia region, Transwestern's Mid-Atlantic Multifamily Group is the only fully-integrated, collaborative multifamily brokerage team serving the entire Mid-Atlantic region. Recent assignments include transactions with JP Morgan, Federal Capital Partners, Angelo Gordon, Equity Residential, and i-star Financial.