1901 S.Charles

BALTIMORE--Rochester, NY-based BroadtreeResidential has acquired a three-asset multifamilyportfolio for $137.5 million from affiliates of ChesapeakeRealty Partners. Two of the properties -- 1901 S. Charlesand 2 East Well -- are local and the third is located in theHarrisburg, PA, area. The total size of the portfolio is 633residential units and two commercial units. All three communitiesare managed by WPM Real Estate Management, a Baltimore-basedthird-party property manager.Broadtree Residential, a private REIT,acquired the portfolio via its first UPREIT transaction. (AnUPREIT, or "umbrella partnership real estate investment trust," isa structure that allows a REIT to defer or avoid capital gains taxwhen selling appreciated real estate. Essentially, property ownerscontribute real estate to the fund's operating partnership on atax-deferred basis in exchange for equity, in the form of OperatingPartnership Units.)In this particular transaction, the sellerscontributed more than $25 million of equity into the operatingpartnership of BTR.Broadtree CEO Chris Czarneckisaid that this deal is the first of what it hopes will be manyUPREIT transactions. “Broadtree operates in a competitivemultifamily marketplace, and one of the ways to create shareholdervalue is via the sourcing and execution of complex UPREITtransactions.

About the Portfolio

1901 South Charles is a Class A mid-rise multifamily communitydeveloped in 2012 by CRP. The property, which consists of 193units, was the first wood-frame residential building in Baltimoreto receive LEED Gold certification.Built in 2015, 2 East Wells is aClass A mid-rise multifamily community. The property consists ofone five-story building with 152 units. Two ground floor retailspaces are tenanted by the Baltimore Soup Company and Minnow, ahigh-end seafood restaurant. 2 East Wells is a green communitybuilt to LEED Gold standards.The Overlook in Harrisburg is a ClassA mid-rise multifamily community built in 2014, located in the CampHill submarket. It has 288 units within six residential buildings.The community was built to LEED Silver standards.