Apartment owner and manager CAPREIT added two assets in Waldorf, Maryland, to its growing portfolio last month, but securing the properties wasn't easy.
“While the frenetic and chaotic nature of the markets ‘culled the herd’ in terms of prospective buyers, long-term owners with significant experience in capital A Affordable, as well as those who desired acquiring solid real estate with great fundamentals, contributed to an ultra-competitive bidding process on the Waldorf portfolio,” Andrew Kadish, CEO of CAPREIT, told Multifamily Dive.
Ultimately, CAPREIT secured the Palmer Apartments and Smallwood Gardens, which have 360 units adjacent to one another, from an undisclosed seller, gaining management efficiencies in the process. The price was withheld.
“CAPREIT will leverage the close proximity of these communities to achieve economies of scale through streamlining operations tasks as well as maintenance teams,” Kadish said.
Palmer Apartments was built in 1980 and features 152 one- and two-bedroom homes, while Smallwood Gardens was built in 1976 and features 208 one-, two- and three-bedroom homes.
The apartments include fully equipped kitchens, large walk-in closets, air conditioning and in-home climate control. Some units have private patios or balconies. Property amenities at both communities include a swimming pool, playground, laundry facility and onsite maintenance.
Property improvements
CAPREIT, which owns and manages more than $6 billion of multifamily properties nationwide, has dedicated $5 million toward upgrades, which will include a significant refresh of building exteriors, amenities, common areas, landscaping and additional community enhancements at the two properties. The firm also plans energy-saving measures, which could reduce utility costs by up to 25%.
The properties are near the North Bethesda, Maryland-based firm’s headquarters, which provides another advantage.
“As the Waldorf portfolio sits in CAPREIT’s backyard, we will be able to provide intensive supervision of the extensive capital improvement projects planned to curate an exceptional living experience for our Waldorf residents,” Kadish said.
CAPREIT also plans to survey residents at key points within the leasing process to evaluate guest and resident sentiment regarding the property’s maintenance, amenities, safety, response time and overall value.
Palmer Apartments and Smallwood Gardens sit across from Smallwood Village Center, a 173,000-square-foot shopping center, and are within walking distance to a stop on the VanGO bus line. The St. Charles neighborhood is located approximately 22 miles south of Washington, D.C., which makes it commutable for those working in the city.
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