MULTIFAMILY MARCH MADNESS

Federal Capital Partners has acquired two Frederick apartment communities for $50.5M: Brookside and Overlook Manor. Managing partner Lacy Rice (left, with RBS Citizens Bank?s Tim Leon and Ballard Spahr?s Roger Winston) and colleague Jason Bonderenkotell us they're confident in the area's multifamily market, owing to job growth (National Cancer Institute) and retail construction. And Federal Capital isn't just riding that wave; 18 months ago, it formed a JV with The Matan Cos to develop NCI. The firm also bought Crystal Park apartments a year ago, where NOI and rental rates have grown more than anticipated.
Here?s Overlook (1208 Alban Ct). Jason tells us Federal Capital used equity and a $38M loan from Wells Fargo to purchase it and Brookside (108 Willowdale Dr). Occupancy is 95% and upgrades are planned. CBRE brokered the sale. For more specifics, Lacy will be speaking at our Second Annual Montgomery County Multifamily Summit on April 1 at the Hyatt Regency Bethesda. (Join us!). Though his firm has invested in over 7,000 units across the Mid-Atlantic in the past 18 months, he's concerned about oversupply. Fundamentals look good, he says, but lots of apartments are approved and plenty of financing is pouring into such projects around Metro stops. Federal Capital's last buy in Montgomery County: the Monterey condos at Montrose Parkway and Rockville Pike. They were 40% occupied, and now that they've been converted to apartments, Lacy says they're 95% occupied.

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