Kushner Sells Baltimore Multifamily Properties in $69M Deal
Kushner Companies has sold Dutch Village and Pleasantview Apartments, two Baltimore multifamily properties, for $69.3 million to a private buyer, Commercial Observer has learned.
The townhome-style apartments offer a mix of one- to three-bedroom units. The 544-unit Dutch Village, located at 2349 Perring Manor Road, is down the street from the 259-unit Pleasantview Apartments, at 6600 Knottwood Court.
“Investor demand for workforce housing has never been higher,” Christine Espenshade, a vice chairman at Newmark (NMRK), which brokered the deal, told CO. “Coupled with a reasonable price point in rent, these properties offer spacious townhomes, nice outdoor space, and proximity to grocery-anchored retail. This product is particularly appealing to renters, but even more appealing to investors.”
While both complexes have undergone minor kitchen and bathroom upgrades and repairs, both properties boast substantial value-add potential, Espenshade said. The new ownership will implement a capital improvements project that will include upgrading units and adding features like new dishwashers, updated finishes, and in-unit washers and dryers.
“The pandemic has demonstrated the desire for many people to search for housing in well-maintained rentals offering larger unit sizes and outdoor space,” she said. “The suburban Baltimore multifamily market is undersupplied, and the opportunity for an investor to purchase the assets with a value-add component makes this acquisition a strategic fit for their portfolio.”
A recent multifamily report by Newmark Research revealed total returns for this asset class accelerated in the second half of 2020, with returns in the fourth quarter rising significantly, given the availability of aggressive financing and the additional equity from commercial real estate investors interested in multifamily.
Kushner acquired both properties about a decade ago, and they’re part of a portfolio of 10 multifamily properties that Kushner has been marketing for sale since December.
“We are very excited by the great execution by the Newmark team, and we wish all the best to the new owners of the properties,” Laurent Morali, president of Kushner Companies, said in prepared remarks.
(Disclosure: Joseph Meyer, chairman of Observer Media, is the husband of Nicole Kushner Meyer, a principal at Kushner Companies.)
Newmark Vice Chairman Robert Garrish joined Espenshade on the deal.