Klein Holdings Sells Washington, DC-Area Property for $88M

Transwestern Real Estate Services brokered the sale of the 590-unit community in Hyattsville, Md.
Villas at Langley. Image courtesy of Transwestern Real Estate Services

Jair Lynch Real Estate Partners has acquired Villas at Langley, a 590-unit, value-add multifamily property in Hyattsville, Md., from Klein Holdings for $87.5 million, or $148,305 per unit.

The Mid-Atlantic Multifamily Group of Transwestern Real Estate Services led by Executive Vice Presidents Robin Williams and Dean Sigmon, Vice President Justin Shay and Multifamily Analyst Michael D’Amelio, represented the seller.

Williams said in a prepared statement the property offers considerable upside potential to increase rental revenue by completing capital improvements. He noted Hyattsville has limited supply of multifamily assets and the property has strong occupancy and demand fundamentals.

Located at 8100 15th Ave., Villas at Langley was built in 1964 and offers one-, two- and three-bedroom apartments. The 504,000-square-foot property is located along University Boulevard and is walking distance to two planned Purple Line light rail stations. The Purple Line will provide east-west connection between New Carrollton, Md., and Bethesda, Md., including stops in College Park, Md., and Silver Spring, Md.

Sigmon stated there was strong investor interest in the asset. Low vacancy and strong historical rent growth have positioned Hyattsville as one of the region’s strongest and most consistent performers with long-term annual rent growth of 3.7 percent since 2015, according to Delta Associates. Transwestern noted Villas at Langley has achieved consistent net growth during ownership while maintaining occupancy levels above 95 percent during that same period.

Jair Lynch Strategy

Active in the Washington, D.C., metro area, Jair Lynch acquired another multifamily property in the region in March. The firm purchased Berkdale Apartments in Herndon, Va., a 184-unit garden apartment complex located at 661 Dulles Park Court. The firm noted in a prepared statement the acquisition was another part of its attainable housing strategy to build and/or preserve affordable and workforce housing in the Mid-Atlantic region.

Jair Lynch announced in early 2019 it intended to invest $200 million over three years but has already surpassed that amount with the Berkdale Apartments transaction. So the firm announced it was expanding its strategy to $400 million along with its existing partner, the California State Teachers Retirement System (CalSTRS), and in collaboration with Nuveen. 

Transwestern Deals

In February, the team of Williams, Sigmon, Shay and D’Amelio represented the seller of The River Front Apartments, a 144-unit waterfront community in Savage, Md., to Blue Ocean. The location offers residents access to Washington, D.C., as well as Baltimore, Annapolis, Md., and Northern Virginia. The Transwestern team also represented the seller of Ashton Heights, a 283-unit multifamily building in Suitland, Md., for $45.8 million in September. During the past 12 months, the Mid-Atlantic Multifamily Group has sold 13 apartment communities totaling 3,578 units with a combined value of $617.8 million.