Starwood Offloads Maryland Multifamily Asset for $106M
Asset manager Excelsa Properties has acquired Concord Park at Russett, a 335-unit multifamily property in Laurel, Md., for $105.5 million.
The deal was done through a partnership between Excelsa’s U.S. Real Estate II fund and an Excelsa co-investment vehicle. Over the last three years, the partnership has acquired $600 million in U.S. multifamily properties.
Starwood Capital Group was the seller, having acquired the property in 2019.
The company assumed an existing interest-only loan with a fixed rate of 3.4 percent and six years remaining on its term, and supplemented the loan with a fixed-rate interest-only loan of a similar maturity date, with a weighted average interest rate of 3.7 percent. The original $61.8 million Freddie Mac loan was facilitated by Newmark (NMRK) in 2019.
“It’s a great location in the sixth-largest national MSA with excellent connectivity to job centers, large institutional asset, large floor plans and resort-style amenity package, plus an attractive assumable debt of less than $62 million at the 3.4 percent rate,” Jonathan Woods, chief operating officer of Excelsa Properties, told Commercial Observer.
Located at 7903 Orion Circle, the nine-building property was built in 2005 and features a swimming pool, a clubhouse with fireplace, a business center, a theater room, a fitness center and a business lounge.
Excelsa Properties plans to invest $4.4 million to upgrade the property, including adding a new roof, HVAC system and signage, plus repairing the parking decks and installing stainless-steel appliances, hardwood flooring and tech packages.
The development is in Anne Arundel County with a population of approximately 600,000 residents and 90,000 employees, according to data from Excelsa.
“The property’s tremendous connectivity to the entire Baltimore-Washington area, combined with its large units and extensive amenities, make it a highly desirable location for residents,” David Fletcher, managing director at Excelsa Properties, said in a prepared statement. There are no current multifamily projects planned in the high-income area, he added.
Newmark represented both sides in the deal.
Keith Loria can be reached at Kloria@commercialobserver.com.