SUITLAND, MD-An affiliate of Harbor Group International has acquired the 15-story, 283-unit Ashton Heights Apartments from an affiliate of Berkshire Property Advisors for $25.5 million.
Harbor plans to invest an additional $2.5 million in the property, or $8,000 per unit, for interior and exterior improvements--a renovation program that was begun by the seller. Harbor did not return a call to GlobeSt.com in time for publication.
According to president T. Richard Litton Jr., Harbor had wanted to acquire a multifamily property outside of Washington, DC, largely because of the strong apartment fundamentals in the area. The Norfolk-based real estate investment and management firm also owns the 768-unit Hamptons at Town Center Apartments, located in Germantown, MD, and 1211 Connecticut Ave., a 125,119-square-foot office building that it acquired in August 2009 for $35.2 million.
In an earlier interview with GlobeSt.com, Litton said the company had been hesitant about re-entering the DC market in a big way until prices and cap rates dropped to more reasonable levels. That point was reached last year, Litton felt, and the company has been eyeing the market ever since for acquisition opportunities.
Delivered in 1970, Ashton Heights sits on a 5.9-acre site. The apartment complex features one-, two- and three-bedroom floor plans with an average size of 960 square feet. Recent renovations include new windows, a new fitness center and overhauled elevator mechanicals. It is currently 97% occupied.
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