The CBRE Washington, DC Multi-Housing Investment PropertiesGroup of Bill Roohan, Andy Boyer, Mike Muldowney, Jonathan Greenberg,Michael Rudolph, John Sheridan and Brian Margerum brokered thetransaction. Maury Zanoff, Joe Donato and Matthew Williams of CBRE'sCapital Markets Mid-Atlantic Debt and Equity Finance Group arranged thefinancing.
The deal was originally forged in June 2009 but it had to go throughtenants' rights, which took longer than expected as a few of thetenants opted to exercise their rights, Roohan tells GlobeSt.com. Thedeal finally closed earlier this month.
Mass Court's acquisition is one of several in recent months here--sales that have been fueled by the relatively strong DC area marketand by a steady decline in cap rates for such product. Cap rates havedropped by 100 to 150 basis points, Boyer tells GlobeSt.com. At onepoint, multifamily was trading at a high of a 7 cap, but on morerecent deals cap rates are hovering around 5 based on trailingnumbers, he says.
CBRE has several other deals under contract, Roohan adds. "For theclass A asset classe we typically are giving 50 to 60 tours andreceive about 40 offers."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
