TEMPLE HILLS, MD—Federal Capital Partners has confirmed to GlobeSt.com that it just sold a two-asset holding for approximately $36 million, or roughly $92,000 per unit, in the Temple Hills submarket. The property is South Pointe, a 390-unit complex located at 2525 Southern Ave., and 2607 Southern Ave., in Temple Hills.
FCP acquired the properties, then called Oxon Park and Oxon Terrace, in November of 2011. It assumed CMBS debt as part of the transaction and planned to put in place a $3.3 million common area improvement plan. At the time, FCP vice president Jason Bonderenko told GlobeSt.com that they traded at a pro forma 7 cap rate.
FCP tapped Transwestern's Mid-Atlantic Multifamily to market the properties. They were positioned as an opportunity for a purchaser "to substantially increase rental revenue by continuing the successful in-unit renovations, and realizing 100% of the water/sewer pass-through."
The "current ownership has renovated several units with a renovation premium of $75-$100 per unit providing the ability to substantially increase income," the marketing materials said. "The comparable rental comp set has witnessed premiums as high as $160."
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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.
