StoneBridge Investments of Washington, DC has acquired Beech’s Farm, a 135-unit rental apartment community in Columbia, MD, for $25.5 million. The seller, an entity controlled by McDowell Properties, was represented by CBRE’s Mid-Atlantic multifamily team.
Located on Eden Brook Drive and originally built in 1985, Beech’s Farm is comprised of seven two- and three-story buildings resembling townhomes. The new ownership intends to renovate apartment interiors upon turnover and add a fitness center to the community’s existing amenities.
Named by Money Magazine as this year’s “Best Place to Live,” Columbia continues to provide both residents and businesses with a wide range of advantages, including quick access to both Washington, DC and Baltimore as well as proximity to major employment centers such as Fort George G. Meade, the National Security Agency (NSA), Johns Hopkins Applied Physics Laboratory, and Baltimore-Washington International Thurgood Marshall Airport. More than 9,000 businesses are located within Columbia itself. The 2015 estimated average annual household income within a three-mile radius of Beech’s Farm is $145,000; 67 percent of local residents (within a one-mile radius) hold a Bachelor’s or more advanced degree.
“Beech’s Farm provides an excellent opportunity for our European investors,” said William Bateman, Director, StoneBridge Investments. “It is a well-located, cash-flowing property with a long history of stable occupancy in a highly desirable location. With upside through value-add unit upgrades over time, this property provides a very attractive risk-adjusted return profile.”
Added Kees Brüggen, Managing Director: “This investment complements our recent acquisition of Seven Oaks in Odenton, MD, a 278-unit apartment complex that is currently undergoing repositioning and renovation. We believe in the continued growth of the Washington-Baltimore corridor, and are particularly attracted to the strong demographics surrounding critical Federal government facilities like the US Cyber Command and Fort Meade. Cybersecurity continues to be a major growth area for both the public and private sector, and its heavy presence in the area promises to remain a significant demand driver looking forward.”
“For our European investors, this type of acquisition is part of an overall diversification beyond the uncertainty of the Eurozone, as well as increased exposure to the dollar,” Bruggen noted.
Beech’s Farm residents enjoy the convenience of walking to King’s Contrivance Village Center just across the street. This community retail center offers a Harris Teeter grocery store, CVS Pharmacy, services, and restaurants. Just minutes away is 1.4 million square foot Mall in Columbia with five anchor department stores and over 200 specialty stores and restaurants. Popular destinations within the mall include an Apple Store, Whole Foods, Nordstrom, Lord & Taylor, and an AMC movie theater complex. Walking trails, community centers, a major entertainment venue, and a 27-acre lake also contribute to the quality of life in Columbia.
ZRS Management, an affiliate of StoneBridge, is managing both Beech’s Farm and Seven Oaks. ZRS currently manages nearly 2,000 units in the DC region and more than 32,000 nationwide. For more information, visit www.zrsmanagement.com.
Active since 1980, StoneBridge and its affiliates have acquired and developed more than $1.5 billion in real estate, primarily in the multifamily sector, for foreign and domestic investors. The company’s strong track record and extensive network of relationships allows it to quickly and efficiently identify and pursue new opportunities, many of which are off-market transactions. The company’s target markets include the Washington-Baltimore area, the Carolinas, Georgia, Florida, and Texas. It has offices in Washington, DC and Amsterdam. For more information, visit www.stonebridgeinvestments.com.