Strategic Realty Acquires Suburban DC Apartments for $46M
By Keith Loria September 11, 2019 2:27 pm
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Strategic Realty Holdings has acquired Ashton Heights, a 283-unit multifamily high-rise in Suitland, Md., from Orlo for $45.8 million, according to Transwestern Commercial Services (TCS), which represented the seller in the deal.
“This was a strong interior value-add opportunity with premiums of $175 per month for fully renovated units,” Robin Williams, TCS’ executive vice president, told Commercial Observer. “The property provided strong ancillary income with current in-place antenna agreements as well as a solar lease agreement that is expected to begin later this year.”
Strategic Realty Holdings is planning on making common area upgrades and interior unit renovations to the property, he said.
Located at 3901 Suitland Road in Prince George’s County, just minutes from the D.C. border, the property was 96 percent occupied at the time of the deal. Orlo acquired the 1970s-era property in March 2016. “The company executed its strategy, including completing needed capital improvements and property enhancements,” Williams said.
The submarket has been updated in recent years, with new walkable retail and entertainment centers and renovations to nearby apartment communities. That’s led to a growing demand in the area, Williams noted in a prepared statement. Over the last year, TCS has helped sell four other communities in the area, representing more than 2,000 total apartment units valued at $260 million.
“We have an additional $145 million under contract scheduled to close in the next few months, including a property across the street from Ashton Heights,” Williams said in a statement. “It’s an incredibly promising sign of the stimulation in the county.”
The location is adjacent to D.C., and offers convenient access to Pennsylvania Avenue Suitland Parkway, the Suitland and Naylor Road Metro Stations and The Capital Beltway.
Joining Williams on the deal was TCS’ Dean Sigmon, Justin Shay and Michael D’Amelio.
Update: This story originally misattributed source material. This has been corrected. We apologize for the error.
