GAITHERSBURG, MD—A source tells GlobeSt.com that Quadrangle Development has under contract two apartments in Gaithersburg, MD for a total of $140.7 million. The properties are Fields Crossing, a 368-unit apartment at 9806 Mahogany Dr. and Shelburne Crossing, a 280-unit multifamily building located at 9900 Shelburne Terr.
Quadrangle did not return a request for comment to GlobeSt.com and we were unable to confirm the report beyond the one source.
An affiliate of the DC-based Quadrangle acquired the properties in 2008, financing them with a $82 million loan provided by PNC Real Estate Services at the time. They were formerly Archstone Gaithersburg Apartments.
If the report is true, the properties are trading at a time when multifamily fundamentals for class A product in suburban Maryland are relatively solid, despite the state's still lagging performance. That said, fundamentals are by no means completely ideal, according to a new report from Delta Associates. The development pipeline is starting to slow on one hand, but absorption of class A properties is down year over year.
In September Delta reported that Maryland metro area class A rents increased by 0.6% for high-rises and 1.3% for low-rises year over year. The 36-month pipeline as of September 2015 for class A product was 11,295, down 9.2% for the past 12 months. Annual class A absorption was 4,029 with 4,384 deliveries. The annual change in absorption was a negative 9%.
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