Suburban DC Apartment Complex Trades in Off-Market Deal Sourced via Proptech

The Maryland complex was identified via brokerage firm Edge’s proprietary software platform

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Acento Real Estate Partners has acquired a suburban D.C. apartment complex for $25 million in an off-market deal with Castle Development, Commercial Observer has learned.

Edge Multifamily Capital Markets Group represented Acento in the purchase of the 144-unit Center Pointe Apartments in Waldorf, Md.

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“The property fit the specific vintage, submarket, and valuation needs for Acento’s fund,” Ryan Ogden, a partner with Edge, told CO. “They identified the submarket based on past performance and future projections during an especially turbulent period.” 

Edge identified the off-market opportunity by utilizing its proprietary Paire software platform, a predictive analytics tool developed to identify acquisition targets. 

“It saves a tremendous amount of time for everyone involved by creating buy-side efficiency through directly identifying assets that match their exact acquisitions needs, versus brokers blindly calling everyone and hoping they can find the right asset,” Rawles Wilcox, a partner with Edge, told CO.

Paire works by processing a series of financial and market indicators to calculate the likelihood of an asset trading, and gauges its suitability to a clients’ specific investment needs. The tool allows Edge to quickly identify a shortlist of potential properties and vet the assets in an accelerated timeframe.

“Paire turned Center Pointe up in a query we ran in the software, based on the very specific criteria that was provided to us by the buyer, and it checked all the boxes required to classify it as ‘ready to trade,” Ogden said. “The interest in and competition for multifamily properties of all asset classes has increased exponentially in recent years, so working with a buyer that can identify and transact with surety on an off-market opportunity has a significant benefit in terms of time and money savings, as well as providing significant risk mitigation, for both our client and the seller.”

Edge launched Paire about nine months ago, and Center Pointe is the first sale that’s resulted from the platform, while a number of additional off-market deals are in the wings, Ogden said.

Located at 2482 Lake Drive, Center Pointe boasts one- and two-bedroom units with features that include granite countertops, stainless-steel appliances, wood-style flooring, and a walk-out balcony and patio.

Castle Development had originally acquired the community five years ago. The property was renovated in 2016, and amenities include an outdoor swimming pool and playground.

It’s 20 miles from D.C., and offers direct access to MD Route 301, close to a range of retail amenities and restaurant options.         

Castle Development represented itself in-house in the deal.