Top 10 Multifamily Buyers in the Mid-Atlantic
Investment activity in the region was high last year, recording more than $6 billion in transaction volume, with names such as Morgan Properties and Pantzer Properties leading the way.
By Corina Stef
It’s been a thriving past year for the Mid-Atlantic multifamily market, which continues to attract a great deal of investor interest. Led by healthy fundamentals such as federal government support, growing economy, demographic expansion, positive absorption and low unemployment rates, the area recorded more than $6 billion in sales for 2017 alone.
Below you can find a top 10 list of the region’s multifamily buyers based on transactions closed during 2017. The ranking is based on Yardi Matrix data.
10. Dweck Properties
The company kept its local footprint with the $135 million acquisition of Crystal Square in Arlington, Va. The 17-story, 378-unit property sits at 1515 Jefferson Davis Highway and is 100 percent occupied. Built in 1980, the asset encapsulates studios, one-, two- and three-bedroom units, as well as a rooftop overlooking Crystal City Reagan National Airport. Dweck Properties purchased it from Bainbridge Cos. last July.
The Chicago investor’s national portfolio comprises 43 communities. Last August, Waterton acquired Citizen at The Shirlington Village for $144 million from GID. The sale was subject to a $104.2 million loan financed by Freddie Mac. The 405-unit community is situated at 3000 S. Randolph St. in Arlington, Va., and comprises studios, one-, two- and three-bedroom units, as well as an indoor metro transit center.
8. Bell Partners
The North Carolina-based company owns 59 properties across the entire U.S. and has paid more than $152.2 million for two properties in Virginia and Maryland, respectively. The 308-unit partially affordable Bell Stonebridge, located at 14701 River Walk Way in Woodbridge, Va., changed hands in a $75.8 million deal and was previously owned by Whiteco Residential. The other asset is Bell Annapolis on West and includes 300 units at 1901 West St. in Annapolis, Md. Pantzer Properties sold it for $76.4 million.
7. Chandler Management
The firm’s portfolio consists of four properties located along the East Coast. Chandler Management acquired three communities totaling 1,124 units for $156.4 million last year only, two of them from Equus Capital Partners. The largest apartment building is the 476-unit Kensington Crossing, which spreads across 36 acres at 101 Knights Court in Fredericksburg, Va., and changed hands in a $74.4 million deal backed by a $61.8 million loan funded by Fannie Mae.
The firm with the largest portfolio in our list (258 assets), Greystar acquired eight properties last year totaling 1,210 units for no less than $157.5 million. Six of them are situated in Northern Virginia, while the other two are in the metro Washington, D.C. area. Most of the communities traded as part of a $4.4 billion portfolio sold following the firm’s acquisition of Monogram Residential Trust in September 2017.
The company’s national portfolio consists of nine residential assets, the latest additions being two communities in Laurel, Md., which changed ownership for a total of $165.8 million. Hampshire Properties sold the 982-unit Arden Pointe, located at 13315 Edinburgh Lane, for $136 million. The other property, previously owned by Urban Investment Partners, is the 235-unit Laurel Pines, situated at 14601 Bowie Road.
4. Morguard North American Residential
Two Mid-Atlantic communities entered Morguard’s portfolio in October in exchange of $172 million. The 490-unit Fenestra, located at 20 Maryland Ave. in Rockville, Md., contains 74 affordable units. It was completed in 2008 by its previous owner, CIM Group, which disposed of the asset for $129 million. On a similar note, Northgate at Falls Church, comprising 105 units at 472 N. Washington St. in Falls Church, Va., was sold by its developer, Hekemian & Co., for $43 million.
3. GoldOller Real Estate Investments
The Philadelphia-based company owns a total of 28 properties and acquired one community in Laurel, Md. for nearly $187.3 million in February 2017 from Berkshire Property Advisors. The Seasons comprises 1,088 units across 71 buildings at 9220 Old Lantern Way and includes one-, two- and three-bedroom residences, as well as two- and three-bedroom townhouses. Freddie Mac financed the sale with a $153.6 million acquisition loan.
2. Pantzer Properties
In 2017, the firm spent $397.6 million on acquiring six properties encompassing 1,979 units in Maryland and Virginia. The largest purchase is the 566-unit The Point Manassas community from Bozzuto Group. Located at 11212 Chatterly Loop in Manassas, Va., the asset comprises 30 buildings on more than 35 acres. Pantzer’s most recent purchase is The Point at Hampton Hollow in Silver Spring, Md., a 240-unit community sold by LivCor.
1. Morgan Properties
The company acquired the highest number of properties on the list—7,372 units across 16 properties for a little over $1 billion, which include three portfolio sales. The Rolling Road portfolio comprises six Maryland communities totaling 1,979 units sold by Harbor Group International in February for $247 million. In August 2017, JBG Cos. shed the six-property, 2,664-unit Mark Center portfolio in Alexandria, Va., for $509 million, while Rockpoint Group disposed of the NOAH portfolio. The batch comprises four communities in Maryland sold last October for $277.5 million.
Images courtesy of Yardi Matrix