Aberdeen, Md.—Tryko Partners LLC has acquired Perrywood Garden, a 184-unit affordable housing property in the outskirts of Aberdeen, a small city near the confluence of the Susquehanna River and Chesapeake Bay. The eight-building, garden-style complex sits on 18 acres.
Built in 1971, Perrywood Garden has a project-based Housing Assistance Payment Contract in place for all of its units. The property includes mostly two-bedroom residences, but also has one-bedroom units, and it features an outdoor pool, basketball courts, children’s playground and laundry facilities in each building. The 45,000-acre Aberdeen Proving Ground, headquarters for the United States Army Testing and Evaluation Command, is a major employer in the area.
Tryko, a private equity real estate equity group, didn’t specify the sales price, though it was reportedly $10 million. The company did, however, say that after the projected value-add, the property should yield a cap rate of 9 percent, adding that the deal reflects the favorable financing terms available for experienced buyers in the current market. Ridge MacLaren, Andrew Townsend, and Clarke Talone from Marcus & Millichap in Philadelphia brokered the Perrywood Garden sale.
“The multifamily investment market, in general, is highly competitive across the board,” Uri Kahanow, Tryko’s director of acquisitions, tells MHN. “That said, because operating affordable housing properties requires a specialized skill set–including the qualification of being a HUD manager–the pool of investors in this niche is somewhat smaller at the outset.”
Tryko’s experience in affordable housing on the East Coast, Kahanow continues, gives the company a competitive edge when it comes to making offers on properties like Perrywood Gardens. “Sellers typically look for buyers that understand the product and have the ability to close deals,” he says. “Our affordable housing management history, network of lenders and track record provide that comfort level.”
The Perrywood Garden deal continues an aggressive period of acquisition for Tryko Partners, which now has a 4,300-unit residential portfolio. Over the past year, the Brick, N.J.-based firm has nearly doubled its multifamily holdings and substantially grown its skilled nursing property portfolio as well. The company buys multifamily properties, healthcare facilities, and tax liens throughout the Northeast and the greater Chicago area.