Frederick Apartment Community Commands $85M
By Keith Loria August 3, 2022 3:34 pm
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Rose Valley Capital has acquired The Fields at Rock Creek, a 314-unit multifamily asset in Frederick, Md., for $85 million.
“The investment aligns with Rose Valley Capital’s strategy of acquiring well-located, high-performing assets that can be further enhanced through a structured capital improvement program,” Daniel Rosenthal, CEO of Rose Valley Capital, told Commercial Observer.
Cushman & Wakefield (CWK) represented the seller, Elite Street Capital Crystal Park Equity, in the deal.
“The seller bought the property back in February 2018 and decided to sell because the market had appreciated to a level relative to where it was when they purchased the asset,” Jorge Rosa, executive managing director at Cushman & Wakefield’s, told CO. “We had very strong interest in the property with multiple rounds of bidding.”
As CO reported earlier, Rose Valley secured $70.01 million in floating-rate financing from Natixis for the acquisition. The debt was brokered by Meridian Capital group.
Located at 100 Alessandra Court, the 289,278-square-foot The Fields at Rock Creek consists of 144 one-bedroom, 137 two-bedroom and 30 three-bedroom units. Amenities include a coworking center, a community clubhouse, a swimming pool with sundeck, and tennis courts.
“We will commence an extensive capital renovation program that will include both communal amenity improvements and a programmatic unit renovation program, which we anticipate will further enhance the resident experience at the property,” Rosenthal said.
The property offers proximate access to Interstates 70 and 270.
“The Frederick County submarket exhibits strong market fundamentals with both a strong demographic base and access to major employment hubs within the greater D.C. market,” Rosenthal said.
Apartment fundamentals have remained strong with significant rental growth and historically low vacancy levels, according to Cushman & Wakefield data. Rosa noted the rapid expansion of biotech, pharmaceutical and life sciences along the I-270 corridor has added to the demand.
Keith Loria can be reached at Kloria@commercialobserver.com.
