197-Unit DC Property Changes Owner
- Feb 14, 2019
Franklin Capital Group has sold Highland Ridge, a 197-unit community in Capitol Heights, Md., for $22.1 million. Buyer Strategic Realty Holdings took out a $17.7 million loan from Prime Finance Partners to finance the acquisition, according to Prince George’s County records.
Located at 1201 Benning Road on the border of Washington, D.C., Highland Ridge is close to several retail centers. The property is 1.2 miles of Benning Road Metro Station and provides easy access to downtown D.C. via Pennsylvania Avenue, Benning Road and East Capitol Street. The 1948-built asset underwent complete renovations in 2005 and $2.2 million were invested in infrastructure improvements during the last three years. The gated community includes studios, one-, two- and three-bedroom apartments, playground and on-site rental office. Encompassing 29 buildings, the property was 89.3 percent occupied as of January, per Yardi Matrix data.
“Highland Ridge is the fourth property we have closed in Prince George’s County in the last handful of months,” said Kyle Tangney, managing director at Greysteel, in prepared remarks. “Investors remain bullish on value-add multifamily opportunities in the county, considering the area’s strong historical annual rent growth, relatively low basis compared to other D.C. MSA submarkets and pricing compared to replacement cost, considering today’s construction cost environment.”
Tangney, President & CEO Ari Firoozabadi and Senior Investment Associate Herbert Schwat were part of the team that closed the transaction on behalf of the seller and also procured the buyer.
Image courtesy of Greysteel