MD Apartments Change Hands in $87M Deal
- Feb 01, 2019
A joint venture between the Donaldson Group, Declaration Capital and a fund managed by DRA Advisors has acquired Montgomery White Oak Apartments, a 592-unit garden-style apartment complex in Silver Spring, Md., from Joncon Venture LLP for $86.75 million.
“It’s solid construction and a strong surrounding rental market,” John Majeski, TDG’s senior vice president of acquisitions and business development, told MHN. “We look to acquire properties where we can make improvements and provide excellent customer services that will result in a positive experience for residents.”
Located at 11550 Stewart Lane, the 1968-built community offers one-, two- and three-bedroom units, with monthly rents ranging between $1,280 for a one-bedroom and $2,270 for a three-bedroom unit. Amenities at the property include an Olympic-size swimming pool, playground, tennis court, laundry facilities and a select number of units have washers and dryers. The community was 90 percent occupied as of December, according to Yardi Matrix data.
Montgomery White Oak Apartments sits on nearly 28 acres in Montgomery County, which has seen its job market increase by 1.3 percent over the last year.
“The property offers great access to employment and new development,” Majeski said. “It’s adjacent to the White Oak Federal Research Campus—home to the FDA headquarters, and is less than one mile to the planned Viva White Oak, a $3 billion, 12-million-square-foot mixed-use development.”
Situated less than 15 miles from Washington, D.C., the community also offers direct access to US-29 and is just a short distance to Interstate 495, the Intercounty Connector and Interstate 95.
The new owners are planning to invest additional capital to renovate the property in the year ahead.
“The main focus will be a renovation program to replace the original, outdated central heating and cooling plant with individual high-efficiency heat pumps installed in each apartment, generating significant savings in utility consumption and cost,” Majeski said.
CBRE Capital Markets’ team of Maxi Thiels Leachman and David Webb assisted the buyer group with obtaining financing from Freddie Mac, while Joncon Venture was represented by CBRE’s Baltimore-based investment sales group of Bill Roohan, Mike Muldowney, Brian Margerum and Martha Hastings.
In October of last year, TDG landed management contracts for two multifamily assets in Virginia totaling 625 units.
Image courtesy of Yardi Matrix