Orlo Acquires Sizable Metro DC Asset for $117M
- Mar 06, 2017
Gaithersburg, Md.—The Orlo Fund acquired the 684-unit apartment community at 750 Clopper Road in Gaithersburg, Md., for $117 million, or just more than $171,000 per unit. The property, constructed in 1974, was sold by AvalonBay Communities.
The property is located within walking distance of a Maryland Area Regional Commuter (MARC) train station and is within close proximity to major Montgomery County employers such as the National Institute of Standards and Technology, MedIummune, Lockheed Martin and Adventist HealthCare.
Moreover, metro D.C. is still a growth market. According to Transwestern research, a net total of 65,500 jobs were added to the Washington, D.C. area during the 12 months ending in November 2016, with the metro poised for further employment growth in 2017.
Transwestern’s Mid-Atlantic Multifamily Group, led by co-directors Dean Sigmon and Robin Williams, represented the seller in the transaction. “Overall investor interest was extremely strong for this asset, as job growth in Washington, DC, has gained significant traction, driving up demand for rental housing,” said Sigmon.
Considering the property’s location and age, it qualifies as a value-add project. “The property offered an opportunity to improve rent growth through more accretive interior renovations and amenity enhancements,” Sigmon noted.