Commercial Real Estate: Apartment deals continue to lead recovery

Date: March 25 2011
Source: The Gazette
Website: http://www.gazette.net/stories/03252011/businew195149_32544.php

Apartment complex deals continue to make big news in Maryland's commercial real estate market, as developers seek out investment properties that can benefit from the dearth of construction since before financial markets collapsed in 2008.

Federal Capital Partners of Washington, D.C., announced it bought a pair of garden apartment complexes in Frederick with a total of 722 units for $50.5 million.

"The Brookside and Overlook Manor acquisitions expand [Federal Capital's] presence in the Frederick market, a market with stable employment centers and opportunity for continued growth," managing partner Alex Marshall said in a statement. "These properties were acquired at a significant discount to replacement cost and allow us to achieve additional economies of scale with our nearby Crystal Park community."

The communities feature easy access to Interstates 70 and 270 and are within walking distance of retail along the Route 40 corridor.

Federal Capital, which has bought about 7,000 rental units in the past 18 months in the mid-Atlantic, plans renovations to common areas and amenity spaces. The Frederick deals continue its strategy of investing in bargain-priced properties...................