Annapolis Apartments Command $150M
By Keith Loria July 25, 2022 1:25 pm
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Armada Hoffler has sold The Residences at Annapolis Junction, a 416-unit apartment complex in Annapolis Junction, Md., for $150 million.
The buyer was not disclosed.
Located at 10125 Junction Drive, the five-story, 759,448-square-foot apartment community was built in 2017 as the residential component of Annapolis Junction Town Center, a mixed-use, transit-oriented development next to Maryland commuter rail’s Savage station.
Armada Hoffler acquired the apartments in November 2020 from developer Somerset Construction in an off-market deal.
The company cited a strong cap rate and an opportunity to fully shift focus to mixed-use in dense areas as reasons for the sale.
“The proceeds allow us to fully fund our development pipeline without accessing the capital markets,” Craig Ramiro, vice president of business development at Armada Hoffler, told Commercial Observer. “Also, in a rising interest rate environment with potential upward pressure on cap rates, we wanted to take advantage of what has been a historically strong market for multifamily assets while our window of opportunity was still open.”
With the sale, Armada Hoffler completed the disposition of $177 million of noncore assets at a blended 4.1 percent exit cap rate this year.
The Residences at Annapolis Junction is LEED Gold certified and close to Fort Meade, the National Security Agency and BWI Marshall Airport.
“There was tremendous interest in the asset,” Ramiro said. “We officially marketed the property in mid-April, received strong offers from multiple, qualified bidders, selected our buyer, negotiated a contract, and closed on the transaction all in just over three months.”
Cushman & Wakefield (CWK)’s Jorge Rosa and Anthony Liberto represented the seller in the transaction. The buyer’s broker was not disclosed.
Keith Loria can be reached at Kloria@commercialobserver.com.
