Pantzer to Pay $111Mln in North Bethesda, Md.
Pantzer Properties has struck a deal to pay about $111 million, or roughly $256,944/unit, for the Monterey, a 432-unit apartment property in the Washington, D.C., suburb of North Bethesda, Md.
The New York company is buying the property, at 5901 Montrose Road, from a venture of Angelo, Gordon & Co. of New York and Federal Capital Partners of Bethesda, Md., which was represented by HFF. The purchase price results in a capitalization rate of about 5 percent.
The property consists of three 16-story buildings. It once was known as the Pavilion when it was acquired by the Angelo Gordon/ Federal Capital venture in 2008 for $97 million, or roughly $224,537/unit, from the former CBRE Realty Finance. CBRE, a Hartford, Conn., mortgage REIT, had taken over the property through foreclosure in 2007 after its previous owner, Triton Real Estate Partners, defaulted on $150 million of debt it had provided.
Triton had acquired the property in 2005 for $117.2 million and sought to convert it to for-sale condominiums. Since buying the 48-year-old property, the Angelo Gordon/Federal Capital team has spent roughly $21 million on upgrades to the common areas, as well as 269 units. Those have monthly rents that average $1,935. Monthly rents for units that haven’t been renovated average $1,685.
The property is roughly 98 percent occupied. Units have up to three bedrooms each with an average of 1,015 square feet. The complex includes a resort-style swimming pool, fitness center and business center. It serves as collateral for a $79 million loan that CIBC provided in 2013.
The Monterey is the eighth Maryland property for Pantzer, which focuses on value-add apartments. It has sold and acquired more than $5 billion of properties since its founding in 1971 by Edward S. Pantzer.
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