Gelfund Acquires Two Suburban DC Apartment Communities for $40M

The buyer already was familiar with the area, having previously acquired the 263-unit Gatewater Landing at 7357 Ridgewater Court in 2020 for $45.3 million

Transwestern represented both sides in the deal.

“There’s some remaining in-unit value-add and economies of scale by owning another asset in Glen Burnie,” Dean Sigmon, an executive vice president at Transwestern, told Commercial Observer.

Promark Partners acquired Annabel Apartments, located at 7491 E. Furnace Road, in May 2017 and the Glen Burnie Town Apartments, located at 201 Crain Highway North, in November 2018.

Sigmon noted that the seller was at the end of its business plan for the property and is exploring buying larger assets. Under Promark’s ownership, the apartments underwent a series of interior renovations to cabinets, appliances, countertops and flooring. 

“The Glen Burnie and Anne Arundel County apartment markets have performed well with an extremely low historical vacancy rate and solid rent growth,” Sigmon said in a prepared statement. 

A recent report by Transwestern’s research affiliate, Delta Associates, revealed Class A vacancy rates for low-rise apartments in North Anne Arundel County were just 2.1 percent as of December 2021, with stable rent growth in the Class B sector for renovated units.  

Joining Sigmon on the deal were Transwestern’s Robin Williams, Justin Shay and Michael D’Amelio.

Requests for comment from the buyer and the seller were not immediately returned.

Update: This story originally misattributed source material. This has been corrected. We apologize for the error.

Keith Loria can be reached at Kloria@commercialobserver.com.