FCP Continues Disposition of St. Charles Properties

ST. CHARLES, MD—FCP reports it has sold two multifamily properties here totaling 340 units to Preservation Partners of Torrance, CA for $56 million.

Preservation Partners added the 100% leased Headen House (136 units) and Huntington (204 units) Section 8 communities in St. Charles, MD to its portfolio.

The transaction continues the disposition of FCP’s “Apartments of St. Charles” assets in St. Charles, MD. In a separate transaction, FCP also reports the sale of 222 industrial acres in St. Charles for $4 million to G & S Piney, LLC, a DC-based excavation and demolition general contractor.

Chevy Chase, MD-based FCP acquired the St. Charles portfolio in December 2009 as part of its American Community Properties Trust (APO) acquisition for $43.6 million plus the assumption of debt. FCP subsequently privatized APO. The initial APO purchase included 3,200 multifamily units, 230,000 square feet of office space and more than 4,500 acres of land entitled for more than 11,000 residential units and five million square feet of commercial development. Most assets were located in St. Charles, MD and Puerto Rico.

Over the past eight years, FCP repositioned and sold portions of the APO portfolio. Early dispositions included interests in a Florida homebuilder and apartments in Baltimore and Richmond, VA. In August 2017, FCP sold 2,400 acres of residential property entitled for more than 7,000 homes in St. Charles to Lennar Corp. for $53.7 million and, in April 2018, completed the $302-million sale of 11 St. Charles apartment communities totaling 1,731 units.

Other notable commercial land dispositions by FCP in St. Charles have included the $13-million sale of land to CPV for the construction of its 725-megawatt natural gas-fueled power plant, the $9.2-million sale of land to Aggregate & Dirt Solutions and Clean Earth of Greater Washington for industrial recycling and the sale of the St. Charles office building for $5 million.

FCP maintains ownership of three apartment communities and more than 65 acres that can accommodate 180 active adult apartments, 208 market rate apartments and 160,000 square feet of neighborhood retail center.

As the primary real estate owner in St. Charles, MD, FCP contributed land for 10 public schools, parks, libraries, public safety facilities and a minor league ball park.

Mike Muldowney, Michael Rudolph and the other members of the CBRE Mid-Atlantic Multifamily Investment Sales and Debt and Structured Finance teams as well as Jeff Kunitz and Alex Medeiros of CBRE’s Affordable Housing Investment Sales team handled the marketing, sale and financing of the transaction. FCP also states that Kettler Management played a vital role in the repositioning of the APO multifamily portfolio.