Joint Venture with Angelo, Gordon Secures 864-Unit Multifamily Community in Gaithersburg
Rockville, MD-based The Donaldson Group, in a joint venture with equity partner Angelo, Gordon & Co. out of New York, acquired the Cider Mill Apts. in Gaithersburg, MD for $110 million, or approximately $127,000 per unit, in what is the largest multifamily transaction in the Washington, D.C. market so far this year.
Developed between 1971 and 1973, the 864-unit garden-style apartment community is located at 18205 Lost Knife Circle across from the 1.1 million-square-foot Lakeforest Mall. The property includes one-, two- and three-bedroom apartments ranging from 690 to 1,140 square feet across 72 buildings.
The joint venture intends to invest an additional $15 million to renovate the property, primarily by replacing the original central heating and cooling plant with individual high-efficiency electric heat pumps for each apartment. Other areas targeted for renovation include common areas and courtyards, building exteriors, landscaping and fencing, leasing center, fitness center, and pool house.
Matthew Williams and Maury Zanoff of CBRE Capital Markets assisted the buyers in obtaining acquisition financing from HSBC Bank. William Roohan and Brian Margerum of CBRE's Baltimore-based investment sales group coordinated the disposition on behalf of the seller, Rochester, NY-based Home Properties.
Please see CoStar Comp #2968556 for additional information on the transaction.