(To read more on the multifamily market and the debt and equity markets, click here.)

WASHINGTON, DC-Federal Capital Partners and Angelo, Gordon & Co., a New York City-based real estate investment fund, have sold three properties from a five-asset, 3,600-unit multifamily portfolio to a West Coast investor and recapitalized the two remaining properties for a total transaction value of $405 million. FCP and Angelo have retained the other two assets in the Maryland-based pool and recapitalized them in a JV with a new overseas-based equity partner.

FCP Partner Lacy Rice declined to discuss the sales price of the three properties or the financial details of the recapitalization, citing confidentiality with its new JV partner. He did tell GlobeSt.com, though, that the properties were recapitalized by assuming and expanding a 10-year, IO Freddie Mac loan.

The companies plan to spend the proceeds from the sale and recapitalization on the continued repositioning of the two remaining properties and additional acquisitions in the multifamily, office and industrial sector.

“The balance of our portfolio is still in the repositioning process,” Rice says. “As the assets reach stabilization, we will look at exit opportunities. Now is a great time to be a seller in this market, as with aggressive lending cap rates continue to fall.”

The three properties that have been sold are Seasons of Bel Air in Bel Air, Cooper’s Crossing in Landover Hills and Henson Creek in Forestville–all of which, according to Rice, have been successfully repositioned and stabilized.

Seasons at Bel Air was built in phases between 1971 and 1982. Located near the Aberdeen Proving Grounds, the 732-unit garden style apartment community underwent a $1.5-million renovation program that included building entry refurbishment, landscaping, in-unit upgrades and systems improvements.

A 727-unit garden style apartment complex originally built in 1966, Cooper’s Crossing received $7.5 million in renovations. These included a new clubhouse and leasing center, new swimming pool, upgraded landscaping, kitchen and bath renovations, building entry renovations and plumbing and mechanical system upgrades.

Henson Creek is a 450-unit garden style apartment community. Originally built in 1965, FCP invested $4.5 million to give it a new community signage package, facade work, redeveloped recreation center and pool along with new windows, paving, and kitchen and bath renovations.

Bill Roohan, Mike Muldowney and Andy Boyer of the CB Richard Ellis’ Washington-Baltimore Multi-Housing Group represented the sellers.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.