Maryland Rental Property Sells for $90.25 Million
- Sep 19, 2012
Germantown, Md.—Hamptons at Town Center, a Germantown, Md. apartment community, has been sold by affiliates of Harbor Group International LLC, to Montgomery County for $90.25 million. Announcement of the sale, one of the largest acquisitions by Montgomery County, was made September 12.
“Harbor Group’s hold period for assets is typically four to six years,” T. Richard Litton, Jr., president of New York City-based Harbor Group International, tells MHN. “We acquired the asset in 2007. Given the strong income performance of the property over the last year and the impact of that performance on sale pricing, it made sense to sell the asset within our typical holding period.”
As for the transaction’s challenges, Litton says, “The buyer assumed the property’s existing CMBS debt. The loan assumption process for CMBS loans is protracted and tedious. Harbor Group has significant experience in loan assumptions as a buyer and a seller, which helped facilitate the process.”
The 768-unit property is among the most expansive garden-style rental communities in the Virginia-Maryland region. Situated a scant 12 miles from Washington, D.C., Hamptons at Town Center is directly adjacent to U.S. Department of Energy headquarters.
It is also next door to the Town Center at Germantown, a mixed-use development featuring 940,000 square feet of commercial office space, two hotels, the BlackRock Center for the Arts and 450,000 square feet of upscale retail space.
The Class B property was constructed in phases between 1979 and 1982, and occupies slightly more than 37 acres. It features an array of one- and two-bedroom floor plans that average 676 square feet in size.
Among the common-area amenities offered by Hamptons at Town Center are a renovated clubhouse and fitness center, business center, swimming pool and baby pool, tennis court, volleyball court, four laundry facilities and playgrounds.
“Since we acquired the property, our improvement program and management practices have contributed to a steady increase in occupancy, with the property averaging above 95 percent for the past year,” Litton says. “The property was a consistent performer. We are pleased with the return it provided to investors.”