SILVER SPRING, MD-Federal Capital Partners and its equity partner, Angelo, Gordon & Co., have sold the Woodvale Apartments, a 376-unit garden apartment community here for $53.2 million. The buyer is a national apartment operator backed by an institutional equity fund. The property management company is the Donaldson Group. The brokers in the transaction were Jones Lang LaSalle's Al Cissel and Scott Melnick.
FCP acquired the property in 2007 and then proceeded to recapitalize and renovate the property, by upgrading kitchens and building a new amenity and leasing center. Other capital improvements included new roofing, the installation of energy-efficient double pane windows and HVAC units. Since it has owned the property the company has experienced NOI increases of approximately 45%. All in all, the investment was the quintessential FCP value add play.
Located on Castle Blvd. in the Fairland submarket, the property is in a great part of Montgomery County, Lacy Rice, principal of FCP, tells GlobeSt.com. "The county is redoing the east county sector plan and Route 29 has been widened, which will benefit this property. With Fort Meade and the growth of the BWI corridor, this part of Montgomery County is well positioned for further growth."
Lacy describes Woodvale as high-quality workforce housing, a rarity in Silver Spring, given the renaissance of the Downtown area and the tendency for developers to build luxury or at least higher-end product. "Quality workforce housing isn't being developed at anything close to the same pace as high-end urban housing now," he says.
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