BALTIMORE, MD-A new value-add multifamily portfolio has gone on the market in the Baltimore area: the Middle River portfolio--three properties consisting of 514 apartments and townhomes. Transwestern's Mid-Atlantic Multifamily Group, led by Dean Sigmon and Robin Williams, are marketing the portfolio, which could be sold in the aggregate or in pieces, Sigmon tells GlobeSt.com.
The group is currently marketing another portfolio with similar attributes--the 1,188-unit DC/MD Beltway portfolio. It consists of five value add properties that can be purchased individually or as a portfolio.
In both cases, Sigmon says, "we are seeing new investors interested in these portfolios. There is a lot more out-of-town New York equity chasing these deals, versus even what we saw last year." The reason, simply, is that these funds have to get their cash out of the door and cannot find enough assets to satisfy their demand. So they look further afield and, in some cases, are willing to accept lower returns.
Sigmon is anticipating that the Middle River portfolio, which includes Essex Park in Essex, MD and Carroll Park and Morningside Park in Middle River, MD, will trade in the mid $40 million range. A classic value add opportunity, it is still owned by the original developer, the Posner family. "The properties are in a family trust." As for the DC/MD Beltway portfolio, "that is in its final and best offer stage."
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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.
