Core Plus Apartment Investment
264-unit luxury apartment complex
- A 264-unit, luxury apartment complex in Towson, MD acquired for $42M ($159K/unit) in October 2004.
- Built in 2002, the property is a high quality Class A apartment community and was 95% leased at acquisition.
- Located in a solid market with a strong demand driver in Towson University.
- Purchased at a substantial discount to market pricing reflective of an unfavorable loan structure. The value of the property increased over time as a pre-payment penalty substantially declined over the course of ownership.
- With competitive product expected to increase and with pricing for core multifamily assets increasing dramatically, NBF positioned the asset for sale.
- The property went under contract in late 2007 and was sold for $56.1M ($212.5K/unit) in March 2008, generating a 31% return on investment vs. original projections of 14%.