X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

[IMGCAP(1)]FORESTVILLE, MD-Federal Capital Partners, a local firm that has made repositioning value-add multifamily communities one of its specialties, has just closed on a 598-unit complex here. According to a source, FCP paid above $50,000 per unit for the property, which is located on 28 acres and stretches out to encompass 22 two-and-three story buildings.

The seller was Rimsi Corp., based in Bethesda. Rimsi was represented by Coldwell Banker Commercial Ideal Realty Group.

[IMGCAP(2)]FCP is planning a $14-million rehab of the properties, which are located at 6311 Pennsylvania Ave. The upgrades, which are scheduled to start immediately, will include improving all of the common areas and upgrading the systems and finishes. Park Berkshire Apartments was developed in two phases during the 1960s. The seller acquired the property in the 1980s.

The credit crunch has had the expected affect on this slice of the commercial real estate market. Lacy I. Rice, FCP partner tells GlobeSt.com that “the financing market is getting more difficult and the impact on pricing has yet to be seen. Many of the high leveraged buyers that were often most aggressive in ’06 and ’07 are no longer as active.

Still, though, Dean Sigmon, team leader at Coldwell Banker–which has brokered most of the major multifamily trades here in recent years–tells GlobeSt.com that despite the credit crunch there is still significant demand for value add multifamily product here. “There are still funds available–we are still seeing a significant interest in these types of properties.”

The property was purchased by a subsidiary of FCP Fund I LP, FCP’s recently formed private equity fund. Currently, the fund has in excess of $600 million in purchasing power for real estate assets in the mid-Atlantic region. Wells Fargo Bank, N.A., through its Real Estate Merchant Banking Group, provided a first mortgage loan for the acquisition.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.