BALTIMORE-Hampton House LLC, a local developer, has sold a 202-unit multifamily property here in an off-market transaction for an undisclosed. The buyer, Boston-based Berkshire Property Advisors, acquired the 13-story, class B community as a value-add play.

The more than 200 units will add to the 7,000 to 10,000 units it already owns in Maryland. Located at 204 E. Joppa Rd., the property is 100% occupied but could use upgrading. Hampton owned the property since it was built 35 years ago.

James Gulley Ltd., a locally based investment boutique specializing in off-market multifamily transactions, represented both parties in the deal.

With upgrades the property could be repositioned to class A because of its proximity to the Towson Town Center regional mall and major thoroughfares in the area. "This was a sought after property but the owner didn't want to sell for a long time," says Jim Gulley, a principal with James Gulley Ltd.

Gulley tells GlobeSt.com that one likely motivator for the developer is the fact that multifamily properties have become more attractive investments in this submarket as cap rates continue to fall. In general multifamily buildings have been trading at $100,000 per key here for the last two years, with the highest deals reaching $175,000 per key. For example, Delaney Crescent, located at 20 Lambourne Rd., traded at approximately that number two years ago, he says.

Indeed, the multifamily asset class has been attracting much investment in the Mid-Atlantic as condo conversion deals lose their appeal. As one example, Onyx Partners LLC, New Jersey-based real estate investment group, has formed a $100-million equity fund that will be leveraged to acquire between $700 million and $800 million in the area over the next six months, as reported by GlobeSt.com.