GAITHERSBURB, MD-A multifamily property here is being placed on the market with a whispered asking price of $130 million. Extensive redevelopment opportunities accompany the 747 existing units in the garden apartment community and make it particularly intriguing. The property, Jefferson at Orchard Pond, is owned by LaSalle Investment Management. It tapped Jones Lang LaSalle’s Mid-Atlantic Multifamily Managing Directors Al Cissel and Scott Melnick to lead the sale.
Companies considering the property have the opportunity to evaluate it through a number of different lenses, Jorge Rosa, vice president with Jones Lang LaSalle Capital Markets Multifamily practice tells GlobeSt.com.

The existing apartment community, situated on 11 acres, is zoned for another 410 luxury apartment units, he says. Then there is an adjacent 32-acre plus parcel that could be redeveloped into a mixed-use project. The location, Gaithersburg, is also favorable, he adds. "Politically, it is a lot easier to get redevelopment pushed through here than elsewhere in Montgomery County." 
Built in 1972, Jefferson at Orchard Pond is located off of the Clopper Road exit of I-270, close to Quince Orchard Rd.

Given all this, $130 million is a reasonable starting point, other brokers agree, especially when taking recent comp sales in the submarket into account.  “It is likely to strike between a year one pro-forma cap rate between 5.5% and 6.2%, and between a price per unit of $145,000 and $175,000,” Ari Firoozabadi, director of Marcus & Millichap’s National Multi Housing Group, tells GlobeSt.com.