DC-Area Portfolio Trades for $302M

FCP sold 11 communities in St. Charles, Md., to an affiliate of Strata Equity Group, after purchasing the properties in 2009 from American Community Properties Trust.
The Links at Gleneagles in St. Charles, Md.

Following the $60.8 million purchase of a garden-style property in Charlotte, N.C., FCP has sold an 11-asset apartment portfolio in St. Charles, Md., to an affiliate of Strata Equity Group, for $302 million. The properties are part of FCP’s Apartments of St. Charles portfolio, which the company purchased in 2009 for $43.6 million plus assumed debt.

St. Charles is located 22 miles south of downtown Washington, D.C., and Waldorf, Md. As the primary real estate owner, FCP contributed land for the development of a variety of public facilities, such as schools, parks and libraries, as well as committed to sponsoring social events, including farmers markets and business fairs.

Sequential disposition

FCP acquired the Apartments of St. Charles portfolio from American Community Properties Trust (APO), as part of a larger transaction that subsequently privatized APO. The deal included 3,200 multifamily units, 230,000 square feet of office space and 4,500 acres of land. Most of the portfolio’s assets are located in St. Charles and Puerto Rico.

Since acquiring the St. Charles portfolio, the company has sold parts of it, including:

  • land for the construction of a 725-megawatt, natural gas-fueled power plant to CPV for $13 million
  • the St. Charles office building for $5 million
  • land to Aggregate & Dirt Solutions and Clean Earth for industrial recycling for $9.2 million
  • 2,400 acres of residential property entitled for more than 7,000 homes to Lennar Corp. for $53.7 million

CBRE’s Mid-Atlantic Multifamily Investment Sales and Debt and Structured Finance teams, led by Mike Muldowney and Michael Rudolph, handled the marketing, sale and financing of the 11-property portfolio, while KETTLER Management procured the buyer.

Image courtesy of Kettler/John Cole