ROCKVILLE, MD-Robin Williams and Dean Sigmon, senior vice presidents of Transwestern’s Mid-Atlantic multifamily group, are set to start marketing two properties, both in Montgomery County, they tell GlobeSt.com in an exclusive interview. One is in Wheaton, a tiny enclave 10 or so miles from the District that has little new supply in the pipeline. The other is in Rockville, where competition is heavier.
No matter though. Interest in multifamily is so high in suburban Maryland that Williams and Sigmon are expecting healthy trades for both properties.
The first asset, Glenmont Crossing, is a 199-unit garden-style community with townhouse units, a unique offering for this submarket, Sigmon says. The sellers are Buvermo Investments and Abbey Road Property Group. The property is also transit-friendly, close to the Glenmont metro stop. “Wheaton has some of strongest fundamentals in rent growth, and there have been little to no concessions in the submarket unlike elsewhere in Montgomery County,” Sigmon says.
The duo declined to provide more details about the Rockville complex until the listing is finalized, but they did say that the property has about 250 units, was built in the late 1960s and is a value-add opportunity.
Multifamily has become such a robust asset class that talk is growing that supply may reach a point where it overshoots demand. This is an issue that directly impacts development, of course, but it is also a factor that must be taken into consideration for investment sales. To be sure, there is plenty of research to counter this notion. However, even multifamily advocates will admit that much of this issue is playing out on a submarket-by-submarket or even micromarket-by-micromarket basis.
Consider Glenmont Crossing. Transwestern research affiliate Delta Associates reports that the Wheaton submarket has little supply in the pipeline--just one mid rise building that would deliver 175 units. Rockville, or rather North Bethesda, by contrast, has several projects in the works including the North Bethesda Gateway, a high-rise that will consist of 1,490 units.
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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.
