FORESTVILLE, MD-Rockville, MD-based the Donaldson Group and private equity firm Angelo, Gordon & Co. have made another value-add multifamily investment in this area. Their latest acquisition is Regency Pointe, a 599-unit apartment complex here, for $20 million. Plans call for an additional $16 million in renovations.
Some 77 of the units are uninhabitable due to a fire and other damage; those will be completely renovated. Other upgrades to the property will include new kitchens, flooring, lighting, carpeting, doors, fixtures and renovated bathrooms in remaining units. New siding will be installed as well as a new fitness center and business center, upgraded laundry rooms and other repairs.
The partnership has been angling for this property for close to a year. Last June it bought the $32 million senior loan on the property from Wells Fargo, after the owner, MPI Cambridge, defaulted. They then launched foreclosure proceedings. The partnership agreed to sell the property to another party at the foreclosure auction, but the sale did not close and a period of litigation followed. Now, the duo has finalized the acquisition.
The two companies also acquired a 459-unit apartment community in Temple Hills, MD earlier this year as well as Heather Hill Apartment Homes for $38 million in December 2010 in an all-cash transaction.