A joint venture between Denver-based real estate private equity firm JCR Capital and Baltimore-based real estate investor and manager Blue Ocean have deployed $30 million in equity to acquire and renovate a multifamily community in Savage, Md., Commercial Observer has learned.
The $30 million capitalization includes the duo’s $24.5 million purchase of River Front Apartments at 8954 River Island Drive in Savage, Md., between Baltimore and Washington, D.C., and also funds a renovation and covers closing costs. JCR Capital made a $6.7 million preferred equity investment in the deal via it’s recently closed value-add investment fund. The transaction closed on Jan. 31, according to sources with knowledge of the transaction.
“We are hyper-selective in our choice of sponsors, so we are thrilled to make [this investment] with Blue Ocean,” Jay Rollins, the president and CEO of JCR Capital, said in a prepared statement. “[This is] reflective of JCR Capital’s long-term strategy to invest in middle-market real estate, an under-served segment of the market which we believe provides attractive risk-adjusted returns for our investors.”
Built in 1974, the 144-unit gated rental complex comprises 14 two-story buildings and 220 surface parking spaces, and it was last renovated in January 2006, according to sources as well as information from Apartments.com. Its location is just steps away from the Little Patuxent River, which runs through the town of Savage, as well as the Historic Savage Mill retail center at 8600 Foundry Street.
The renovations planned for the asset include upgrades to the property’s common areas, building signage and landscaping as well as the addition of new mailboxes and washers and dryers inside the units.
The asset features one-, two- and three-bedroom apartments, which range from 940 square feet to just under 1,200 square feet and have private balconies or patios, sources said. One-bedroom units are currently listed on Apartments.com, with monthly rents ranging from just over $1,100 to around $1,500.
On Apartments.com, there’s what seems to be a note from the property management company that offers $1,000 in rent credit, plus a heavily discounted security deposit, for anyone who moves in by April 25.
Blue Ocean could not immediately be reached.