Dealmaker: Transwestern Commercial Services Brokers $133M in Multifamily Transactions

Transwestern Commercial Services brokered two Washington, D.C.-area multifamily sales totaling $132.5 million.

In Suitland, Md., TCS brokered the sale of 359-unit value-add property Capital Crossing. Hampshire Properties, Brooklyn, N.Y., sold the garden-style asset to Castle Lanterra Properties, Suffern, N.Y., for $144,847 per unit.

TCS Executive Vice Presidents Robin Williams and Dean Sigmon, Vice President Justin Shay and Multifamily Analyst Michael D’Amelio represented Hampshire Properties in the transaction.

“Capital Crossing is a strategic purchase by Castle Lanterra, as the Suitland market is supply-constrained for multifamily product,” said Williams. “There is considerable upside potential to increase rental revenue by completing renovations on approximately 200 remaining units.”

Low vacancy and strong historical rent growth have positioned Suitland as one of the D.C. region’s most consistent performers, Williams noted. Capital Crossing is adjacent to the Ashton Heights community, another Prince George’s County multifamily asset TCS sold earlier this month for $45.8 million.

“Investor interest was extremely strong for both Capital Crossing and Ashton Heights Apartments,” said Sigmon. “In this region, assets with such low vacancy that offer yield investment opportunities and organic rent growth are scarce.”

In August, Sigmon, Williams and Shay represented Castle Lanterra when it sold 409-unit apartment community Misty Ridge in Woodbridge, Va. for $80.5 million. Capital Square 1031, Glen Allen, Va., acquired the 328,000-square-foot building for nearly $200,000 per unit.

Sigmon said Misty Ridge gives the new owner the potential to raise rental rates by improving several amenity areas and upgrading existing units while benefitting from strong in-place cash flow.

Misty Ridge is less than 25 miles from downtown Washington, D.C. It is near U.S. Route 1 and has access to Interstate 95 express lanes and the Rippon Virginia Railway Express commuter rail station.

Delta Associates, Alexandria, Va., reported apartment vacancy remains well below 5 percent in east Prince William County and rents grew 4.3 percent in the 12 months ending in June.