SILVER SPRING, MD-Following on the heels of FCP's $53.2 million sale of the Woodvale Apartments, another multifamily sale has closed in this submarket.

Home Properties has sold Falkland Chase, a 450-unit complex consisting of three parcels, for $98 million, or approximately $218,000 per unit. The buildings are located at the intersections of 16th Street NW, East-West Highway and Colesville Road. The north parcel of Falkland Chase currently contains 182 garden apartments and has final site plan approval to develop a maximum of 1,250 multifamily residential units in four high-rise buildings and 70,000 square feet of retail space.

Net proceeds to Home Properties, after closing costs and $35.9 million in debt repayments, were $60.3 million. The weighted average historical cap rate on the sale is 5.5% after applying a 2.7% management fee and before capital expenditures. A gain of approximately $36 million will be recorded in the 2013 first quarter.

Silver Spring is a blossoming submarket, notes Ari Firoozabadi, president of Greysteel – even without these two sales.

The Woodvale, he tells GlobeSt.com, at $141,000 per unit, sold at roughly a six and three quarter on trailing twelve and seven capitalization rate looking forward.

Whether additional multifamily development, as the Falkland Chase could support, is a wise move right now, though, may be debatable.

Firoozabadi notes that greater Silver Spring has approximately 5,000 units planned for delivery in the near term, "however, most believe that some of those deals will not get out of the ground during this cycle."

Update: Jones Lang LaSalle managing directors Al Cissel and Scott Melnick led the Jones Lang LaSalle team on this transaction.