Sales Bring Prior 12 Month Volume to More Than $600 Million and 3,200 Units
December 07, 2020
WASHINGTON – Transwestern Real Estate Services (TRS) announces its Mid-Atlantic Multifamily Group executed the sale of two multifamily communities in November totaling $95.75 million. Transwestern Executive Vice Presidents Dean Sigmon and Robin Williams, Vice President Justin Shay and Analyst Michael D’Amelio represented the sellers in the transactions. The deals bring the group’s sales volume for the past 12 months to more than $600 million and reflects more than 3,200 apartment units sold.
“We continue to witness strong demand for value-add product throughout the Washington and Baltimore regions,” said Sigmon. “Despite the impact that COVID-19 has had on Class A rents and urban centers, we have continued to experience cap rate compression for suburban Class B, value-add opportunities.”
Pantzer Properties sold The Point at Hampton Hollow, a 240-unit, garden-style community at 3408 Hampton Hollow Drive in Silver Spring, Maryland. DF Ventures, a business unit of Drucker + Falk, acquired the Class B+, value-add property built in 1987 for $49.5 million, or $206,250 per unit.
Philadelphia-based Gelfund Real Estate acquired Gatewater Landing is a 263-unit, garden-style community at 7357 Ridgewater Court in Glen Burnie, Maryland. L3C Capital Partners sold the Class B, value-add property built in 1975 for $46.25 million, or $175,855 per unit.
“We continue to see new investors enter our market, and there continues to be a lack of available product to meet the investor demand,” said Williams. “The amount of available equity and increased focus on workforce housing and value-add assets have created a shortage of available buying opportunities.”
According to Delta Associates’ Third Quarter 2020 Class B Apartment Report, rents remained stable for Class B, low-rise apartments in suburban Maryland with a 0.0% effective rent grown in the 12 months ending September 2020, compared to a 7.0% decrease in Class A rents throughout the Washington region. Suburban Maryland continues to outperform both Northern Virginia and Washington, D.C.
The Transwestern Mid-Atlantic Multifamily Group provides a full range of investment sales services throughout Washington, D.C., Northern Virginia, Richmond, Baltimore, Philadelphia and Delaware. The group’s recent client roster includes Sentinel Real Estate, Federal Capital Partners, Foulger-Pratt with DLJ, Hampshire Properties, Aimco, Avalon Bay, Equity Residential, The Bozzuto Group, Fannie Mae, AIG Investment, Morgan Properties, Goldman Sachs, JP Morgan and Angelo Gordon.
About Transwestern Real Estate Services
Transwestern Real Estate Services (TRS) adds value for investors, owners and occupiers of all commercial property types through a comprehensive perspective and by providing solutions grounded in sound market intelligence. Part of the Transwestern companies, the firm applies a consultative approach to Agency Leasing, Asset Services, Tenant Advisory + Workplace Solutions, Capital Markets, and Research & Investment Analytics.
The privately held Transwestern companies have been delivering a higher level of personalized service and innovative real estate solutions since 1978. An integrated approach formed from fresh ideas drives value for clients across commercial real estate services, development, investment management and opportunistic programs for high-net-worth investors. The firm operates through 34 U.S. offices and global alliances with BNP Paribas Real Estate and Devencore. Learn more at transwestern.com and @Transwestern.