By Bogdan Odagescu
Greysteel closed the sale of Portside Apartments, a 150-unit fully affordable community located in Baltimore. The company represented the seller as well as the buyer, principal of BCI Management Matt Teichman. According to data provided by Yardi Matrix, the seller was Annapolis-based Osprey Property Cos. and the asset last changed hands in 2005 for roughly $3.6 million, or $23,667 per unit. Greysteel had been retained in March to handle the listing of the Baltimore affordable community.
Constructed in 1948 and formerly known as Cummins, the community is located at 2125 Cameron Drive. It consists of one-, two- and three-bedroom units, ranging in size between 550 and 990 square feet. Amenities include individual air conditioning, controlled access, a clubhouse, playground, laundry facilities and 275 parking spots. The property is roughly 3.5 miles east of The Shops at Canton Crossing and within a 20-minute drive of downtown Baltimore. Amazon’s new Southeast Baltimore facility is also situated within easy reach.
A Section 42 property
The property is subject to Section 42 (LIHTC) provisions and should remain affordable through 2047, Yardi Matrix shows. According to Greysteel, Portside is part of the program since 2007 and underwent a comprehensive renovation process. The refurb brought upgrades to units and capital items such as electrical systems, including the conversion of heating/cooling to individual HVAC units, building a new multi-purpose room, computer lab and outdoor community space.
“Portside was rehabbed with a nine percent credit award, so the improvement level of the units and amenity package is top of the submarket,” said Alicia Orkisz, senior investment associate at Greysteel in prepared remarks. “With market rents well below maximum allowable LIHTC rent levels, this provided a strong yield and preservation opportunity for the buyer.”
In closing the deal, Orkisz worked alongside Greysteel President & CEO Ari Firoozabadi, Senior Investment Associate Ari Azarbarzin and Investment Associate Henry Mathies.
Image courtesy of Greysteel