BETHESDA, MD-Transwestern’s Mid-Atlantic Multifamily Group is bringing to market 1,876 value-add units in the Prince George’s county submarket. The units are part of one portfolio and one asset, Dean Sigmon, SVP and director of the group, tells GlobeSt.com. He and colleague SVP Robin Williams are set to announce the availability of the portfolio—the Ashford portfolio, otherwise known as the Bethany portfolio—immediately. It joins the 699-unit Lighthouse at Twin Lakes, which is located Beltsville, MD.

The Ashford portfolio consists of two properties. One is the Ashford at Coopers Crossing; the other is Ashford at Henson Creek. “These were previously foreclosed,” Williams says. “They have been in receivership since 2010.” Now Transwestern is representing the new owner, which acquired the note; a group that is not locally based, Sigmon says, declining to provide more information. Williams calls the portfolio the “rarest of rare value add opportunities.” He says a new owner could increase NOI significantly. “These units can be acquired far below the replacement cost as well as at a discount to the last sales price.” They are value add because the properties don’t have stabilized occupancy, he says. The reason the occupancy is low is that there wasn’t enough cash flow out of operations to fund unit turns and bring units online to add to the rental pool.

Transwestern also brought to market Lighthouse at Twin Lakes, which is in need of interior renovation for most of the units. “The property has had significant infrastructure improvement but only 50 of the 699 units have had interior renovations,” Sigmon says. Those that did are achieving a premium of between $175 to $250 per unit on a monthly basis compared to the unrenovated units. The unrenovated units are renting for an average of $1,079. “That is a significant premium for a submarket like PG County,” Simon says.

In general, investors are eager for value-add opportunities now, he says. “They have had a proven track record.”