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(Read more on the multifamily market.)

SILVER SPRING, MD-Federal Capital Partners and Angelo, Gordon & Co have acquired a 376-unit garden-style multifamily property here that is next to an apartment community and townhome lots the duo already owns. The two firms did not release financial information about the transaction, but according to an industry source they paid $46.5 million for Castlegate Apartments, located on Castle Boulevard.

Adjacent to the property is the 534-unit Ashford at Woodlake Apartments and 59 fully approved townhome lots. The seller was not disclosed.

“We had been poised waiting for Castlegate to come on the market because it was not performing as well as our operations at Woodlake next door,” FCP partner Alex J. Marshall tells GlobeSt.com. “We felt we could do a better job.” Marshall says the partners are implementing a $4-million capital improvement program to reposition Castlegate–a value-add play that is FCP’s core investment strategy–as well as raise the now 90% occupancy rate at the complex. Planned investments include an expansion and modernization of the club house and leasing center to include a fitness and business center, landscaping upgrades and new signage.

The average rent for the property is $1,150. Castlegate is composed of 30% one-bedroom units, 58% two-bedroom units, and 12% three-bedroom units. The average unit size is 990 sf.

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