Donaldson, DRA Advisors Buy Warwick Apartments in Silver Spring for $91M
By Keith Loria August 24, 2021 4:05 pm
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A joint venture between The Donaldson Group (Donaldson) and New York City-based DRA Advisors has acquired the Warwick Apartments, a 398-unit multifamily building in Silver Spring, Md., for $90.5 million.
The seller, Baltimore-based BDMG, originally acquired the property in 2019 in a $74 million deal.
“The appeal was the opportunity to improve a well-built and well-located property that will retain current residents and attract future residents,” John Majeski, Donaldson’s senior vice president, told Commercial Observer.
Located at 1131 University Boulevard West on 8.7 acres, the building consists of one-, two- and three-bedroom units, with such community amenities as a pool, fitness center and business center. Rents currently range from $1,366 to $1,800 a month, according to Transwestern.
“With access to the Capital Beltway and other major thoroughfares in the region, it offers an ease of transportation for residents,” Majeski said. “Downtown Silver Spring is just a 15-minute drive and Downtown D.C. is about a 30-minute drive, which makes it very appealing.”
Rockville, Md.-based Donaldson, which will manage the building, is planning significant renovations to the building, including converting a central plant system to individual HVAC units — something that the seller was in the midst of doing at the time of sale. The buyer is assuming an in-place Fannie Mae loan to complete the process.
“In addition to the utility conversion, we will make improvements to the common areas, elevators, parking garage and the building exterior,” Majeski said. “Along with those, we will renovate interior units with new kitchens, including cabinets, countertops and appliances.”
Donaldson is well familiar with the area. In 2019, the company partnered with Declaration Partners to acquire the 272-unit Vista at White Oak Apartments in Silver Spring for $53 million.
Transwestern represented BDMG in the off-market transaction.
Keith Loria can be reached at kloria@commercialobserver.com.
