Washington—Transwestern recently represented AvalonBay Communities in the disposition of Eaves Gaithersburg, a 684-unit community in Gaithersburg, Md., roughly 25 miles northwest of Washington, D.C. Maryland-based The Orlo Fund acquired the asset for $117 million, or $171,053 per unit. According to Montgomery County records, the community last changed hands in 2010 for $101 million, or $147,661 per unit. The previous sale, Yardi Matrix data shows, was subject to a $63.2 million Freddie Mac loan which was set to mature at the beginning of 2018.
Transwestern’s Mid-Atlantic Multifamily Group, led by co-directors Dean Sigmon and Robin Williams, represented the seller. The property, which was marketed as a value-add opportunity, was 97.7 percent occupied as of August 2016.
Previously known as Grove Park, the 56-building Eaves Gaithersburg is located at 750 Clopper Road and offers quick access to interstates 270 and 370, as well as to Route 355. Constructed in 1974, the property was last renovated between 2005 and 2006. The immediate area is home to many of the county’s largest employers, including the National Institute of Standards and Technology and MedIummune. Situated less than 1 mile from the Metropolitan Grove MARC Station on the Brunswick Line, the community is also close to several retail corridors and centers, a couple of which are within walking distance.
Eaves Gaithersburg offers 255 one-, 295 two- and 134 three-bedroom apartments with an average unit size of 963 square feet. The average rental rate for 2016 was $1,473, according to Yardi Matrix.
The list of community amenities includes controlled access, fitness center, business center, clubhouse, swimming pool, as well as 1,490 grade-level parking spaces. In-unit amenities include washer/dryers in all units, hardwood floors, eat-in kitchens and floor-to-ceiling windows.
“Overall investor interest was extremely strong for this asset, as job growth in Washington, D.C., has gained significant traction, driving up demand for rental housing,” said Sigmon in prepared remarks. “The property offered a rare, sizable multifamily opportunity to improve rent growth through more accretive interior renovations and amenity enhancements.”
Image courtesy of Yardi Matrix