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FREDERICK, MD-Chesterbrook apartments, an 84-unit garden style apartment complex here, has traded in one of the few 1031 exchange deals that have closed in the market in months. The class B property, almost fully occupied, sold for $5.2 million. Cullen O’Grady and Rick Struse of Vanguard Realty Group represented the buyer, a Rockville, MD-based private investment group. Rocky McKintosh of Macro Ltd., represented the seller, a locally based partnership group.

O’Grady and Struse also repped the buyer in the sale of a building in Baltimore–the first transaction that led to the 1031 structure. Fannie Mae provided financing for the apartment building so the buyer could close on the sale, according to O’Grady.

The District and close-in suburbs have been experiencing a wave of multifamily transactions over the last several weeks, with properties trading at $50 million to $100 million a pop. This activity, or rather the demand for multifamily, though, appears to be limited for now to core class A assets. Deals that tend to be based on smaller properties in the suburbs, like 1031 Exchange transactions with multifamily properties, have been anemic this year, O’Grady tells GlobeSt.com.

Struse and O’Grady brokered this summer an eight-asset multifamily portfolio in Takoma Park, MD, with the first property trading for $2.35 million and an 8% cap rate. The total value of the portfolio is between $9 million to $10 million.

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