ANNAPOLIS—Ultimately the $105 million sale of the 608-unit Watergate Village here was about the water, about its walkability and about the $1 million townhomes located across the street, says CBRE's Bill Roohan.
The apartment building traded to Elie Rieder at Castle Lanterra Properties, having been sold by Columbia Realty Venture LLC, an affiliate of Bernstein Management Corp.
It is a value-add play, Roohan tells Globest.com, in large part because of the phenomenal view and location. Roohan's colleagues Mike Muldowney, Brian Margerum, Michael Rudolph, and Martha Hastings also represented the seller in the transaction.
The apartment complex is located along a highly-coveted stretch of waterfront in Annapolis, he explains. Although the apartment units themselves can't be considered luxury – nor could they easily be converted given their 8' ceiling height – higher income residents tend to live there, he says, pointing to the $1 million townhomes located nearby.
"There are cars parked in the parking lot, owned by residents, that cost more than the per unit price of those apartments," he says.
"The new owners can make some capital improvements and it will be a no-brainer for a lot of residents," he says, including possibly folks from Washington DC that are looking for a summer rental and could easily afford the monthly $1700 or so rent.
Watergate Village is located on a 31.1-acre site on Back Creek with 3,000 feet of water frontage. The property has both mid-rise and traditional garden-style buildings.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
