M3 Equities Acquires Senior Housing Condos for $16M
M3 Equities has acquired 108 condominium units in Chestnut Oaks, a 149-unit senior housing community in Fort Washington, Md., for $15.5 million.
The seller, Martin Poretsky, was the original developer, completing the project in 2007. At the time, Poretsky retained ownership of 105 units, which he rents, and in the ensuing years he acquired three other units through an LLC.
Interest in the property — from local, regional and national buyers — was so high that there were approximately 200 signed confidentiality agreements and eight written offers, according to Marcus & Millichap, which represented Poretsky in the deal.
“Now was the time to sell because it was the last property he had owned. We had sold the rest of his portfolio over a decade and he was ready to get out of the market,” Eric Jentoft-Herr, a multifamily specialist at Marcus & Millichap, told Commercial Observer.
Located at 1800 Palmer Road, Chestnut Oaks is a tree-lined community just five miles south of Washington, D.C.
The area is anchored by National Harbor, an entertainment destination on the Potomac River, and home to approximately 24,000 residents with a high average annual household income of $156,921, according to Jentoft-Herr.
Amenities include a billiards room, a 165-space parking lot with valet service, a movie theater, a beauty salon, a library, and a resident lounge with a full kitchen and dining area.
“The closing of this asset represents the disposition of the final piece of a significant multifamily portfolio that our client built over many years,” Marty Zupancic, senior vice president of investments for Marcus & Millichap, said. “We are excited to have been able to navigate the many complexities of the deal including the condominium interest component, a defeasance process, and the changing interest rate environment mid-transaction.”
Joining Jentoft-Herr and Zupancic on the deal was the firm’s Nick Murray and Christian Barreiro. M3 Equities was represented by Marcus & Millichap’s Sean Brown.
Keith Loria can be reached at Kloria@commercialobserver.com.