Transwestern today announces it has been retained by Foulger-Pratt Companies and DLJ Real Estate Capital Partners to sell a three-property multifamily portfolio consisting of 1,106 apartment units in Prince George’s County, Maryland. Dean Sigmon, Robin Williams and Justin Shay of Transwestern’s Mid-Atlantic Multifamily Group are the listing agents for the portfolio.
“This portfolio offers investors a strong opportunity to acquire three well-maintained apartment communities near major employment centers in Prince George’s County, just outside Washington, D.C.,” said Williams. “There are significant upside opportunities available through in-unit upgrades, utility restructuring, and the potential to increase asking rents and realize organic rent increases through renewal and turnover.”
The portfolio includes:
Cheverly Station: 555 units at 6501 Landover Road in Landover, Maryland
Parkland Station: 147 units at 2128 County Road in District Heights, Maryland
Pennbrooke Station: 404 units at 5042 Silver Hill Court in Forestville, Maryland
The properties are currently operated individually, offering the opportunity for improved efficiency by streamlining and consolidating operations. Investors can purchase them individually or as a portfolio.
Ownership made several improvements to the portfolio, including updating windows, sliders, appliances and countertops; replacing balcony decks, railings, and roofs; upgrading unit HVAC systems; and enhancing the leasing center and community amenities.
According to a renovation study by Transwestern research affiliate Delta Associates, there are a number of similar vintage properties in the submarket that have been renovated at a significantly higher level, suggesting significant additional upside can be gained by taking in-unit interior renovations a step further to garner higher rental premiums.
Located in Prince George’s County, one of the strongest performing apartment submarkets in the Washington, D.C., metro area, the properties are proximate to a wide array of employment, retail and entertainment centers. Dynamic new development is taking place throughout Prince George’s County, including the $645 million Prince George’s County Regional Medical Center, the $400 million Suitland Town Center development, and the first phase of the 2.7 million-square-foot, transit-oriented development at the New Carrollton Metro Station. The forthcoming Purple Line, a 16.2-mile light rail and one of the region’s largest transportation projects, will connect the New Carrollton Metro Station to College Park, Silver Spring, and Bethesda, Maryland.
Effective rents in the Andrews submarket, where Pennbrooke and Parkland are located, have increased 3.5 percent in the 12 months ending September 2017, according to the Q3 Delta Associates Class B Market Report. This is one of the highest rent growth rates of any submarket in Suburban Maryland during this time frame. Vacancy rates for the Landover/New Carrollton submarket, where Cheverly Station is located, remain one of the lowest in the region at 1.6 percent as of September 2017