Suburban D.C. Apartments Sell for $98M

Falkland Chase, an apartment property with 450 units, has traded hands for $98 million, or about $218,000 per unit.

Silver Spring, Md.—Falkland Chase, an apartment property with 450 units, has traded hands for $98 million, or about $218,000 per unit. The property, located in Silver Spring, Md., consists of three parcels at the intersections of 16th St. NW, East-West Highway and Colesville Road.

The north parcel of Falkland Chase currently contains 182 garden apartments. But it also has final site plan approval for development of as many as 1,250 multifamily residential units in four high-rise buildings, as well as 70,000 square feet of retail space.

Rochester, N.Y.-based Home Properties sold the property to JBG Cos. Net proceeds to the seller, after closing costs and $35.9 million in debt repayments, were $60.3 million. The cap rate on the sale was 5.5 percent.

Home Properties originally purchased Falkland Chase in 2003. Now the company says it’s reducing its holdings in metro Washington. Falkland Chase is considered a TOD, since it’s near the Silver Spring Metro station, in one of Montgomery County’s busier downtowns.

In a separate sale, Home Properties sold South Bay Manor, a property containing 61 units in Sayville, New York, for $11.1 million. The cap rate on that deal was 6.4 percent.