(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)

DISTRICT HEIGHTS, MD-A 930-unit apartment building here has been acquired out of foreclosure for $58 million. The price is a testament to the high demand for multifamily space by local residents--and investors seeking a stable cash flow. That is because the property, called Residences of Suitland Parks, is less than 50% occupied and in dire need of renovation.

A partnership between Dragone Realty Investments and a fund managed by Pacific Coast Capital Partners LLC, acquired the property at 6501 Hil-Mar Dr. CBRE’s Mike Muldowney, Bill Roohan, Andy Boyer, Michael Rudolph, Brian Margerum, and Martha Hastings represented the lender that owned the asset. Maury Zanoff and Matt Williams of CBRE represented the buyer.

The all-in price, though, will be approximately $72 million, once the cost of the renovations is factored in, Muldowney tells GlobeSt.com. "They bought it on a price-per-pound basis, knowing they could achieve an attractive cash flow upon stabilization," he says. CBRE also helped the buyer arrange acquisition and redevelopment financing. the firm also secured a three-year non-recourse loan with two one-year extension options at an "aggressively priced interest rate," said Zanoff said in a prepared statement.

The apartment sits in a submarket with four other large apartment communities that have been stabilized, Muldowney adds. "The capital commitment Dragone and PCCP are making will transform this last corner of the submarket that wasn't stable," he says.

The lender foreclosed on the property in April 2011 and was able to record the deed by December, when CBRE began marketing it. Built in 1960, the apartment building’s units are approximately 950 square feet and command an average monthly income of $1,061.