LAUREL, MD-Federal Capital Partners has acquired a multifamily complex here for $33.6 million. Called Montpelier Crossing, the 386-unit apartment and townhome community is located close to Fort Meade. That is one of the reasons why FCP scooped it up, Jason Bonderenko, a vice president at FCP, tells GlobeSt.com.
“We like the fact that it is close to Fort Meade, which will be generating a considerable number of jobs thanks to BRAC,” he says.
Like many FCP acquisitions, this deal is a value-add play. FCP plans to invest about $5 million to upgrade the property. Rents, in general, are rising in this submarket due to supply/demand fundamentals, Bonderenko says. For that reason, rents at Montpelier Crossing will likely rise. “Our expectation is a higher ROI from this investment in the form of higher NOI,” he says.
The property’s occupancy is hovering in the mid 90s. FCP has been stretching its activities beyond value-add repositioning by moving into other Mid-Atlantic markets and by increasing its focus on development.
It recently acquired a development site in Adams Morgan with plans of building approximately 40 condominiums. It will partner with locally based Altus Realty Partners for the project, located at 2337 Champlain St., NW.
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