FREDERICK, MD-A luxury rental apartment community here, called Crystal Park Apartments, has traded for $28 million, or $89,172 per dwelling unit. A J.P. Morgan entity sold the property to Federal Capital Partners in the District. Ideal Realty’s Allen Manesh and Dean Sigmon brokered the deal, along with another sale by J.P. Morgan earlier this month for $34.5 million.
The back-to-back deals are illustrative of how quickly the multifamily market has revitalized since the beginning of the year, Manesh tells GlobeSt.com. “We have offers on several properties now that we hope to close in the coming months. I think the area in general is beginning to see a light at the end of the tunnel, due to the fact that financing is available and that a lot of investors want to be in DC right now.”
Financing is indeed available, largely through the GSEs, Fannie Mae and Freddie Mac. The other transaction Ideal brokered for J.P. Morgan was Beacon Place in Gaithersburg, MD, a luxury 240-unit, garden-style rental apartment property. Walker & Dunlop sourced the acquisition financing before the deal went to market from Freddie Mac in less than four weeks.
Other companies, such as FCP, are sitting on huge amounts of cash raised in anticipation for such opportunities. It is unclear if FCP paid cash or is financing this transaction.
Built in 1991, Crystal Park consists of 314 garden style apartments. With almost every unit at Crystal Park recently renovated, FCP is planning to put in new roofs and to repave the property.