The Bascom Group and Spirit Investment Partners have closed on a collection of 198 luxury apartment units in suburban Maryland that are part of a converted condo development.
Irvine, CA-based Bascom and its Stamford, CT-based partner Spirit paid $41 million, or about $207,000 per unit, for a portion of the Tribeca at Camp Springs apartment community, located about 10 miles south of Washington.
Located at 4701 Old Soper Rd. in Camp Springs, MD, the property was developed in 2008 as a planned for-sale condo project with 282 units. It opened just as the condo market – and the larger housing market – began to crater. Developer Wood Partners managed to sell 84 of the units before the market dried up.
The remaining 198 units, and 18,800 square feet of ground-level retail space, were later sold to Tonti Properties of Dallas, TX for $29.9 million after Wood defaulted on the construction loan, according to CoStar data.
Now, Bascom and Spirit Investment Partners have taken over the 198 rentals and retail space. HFF’s sales team, led by Walter Coker, represented Tonti in the deal. HFF also secured the debt for the buyers. Pinnacle, of Dallas, is the new property manager. The apartments average 95% occupancy.
Bascom and Spirit have an ongoing joint venture, Spirit Bascom Venture, formed in 2012. The partnership acquires value-added multifamily properties in the Northeast, Southeast and Midwest markets. So far, the venture has acquired 10 properties including this one. The partnership is expected to undertake a light renovation of the apartment interiors as a way to boost rents there.
Because the Bascom partnership owns the majority of the units, they control the property’s homeowner’s association, usually an essential requirement for owners investing in busted condo projects. Bascom and Spirit are expected to operate the property as rentals.
But the companies could wait until the improving condo market allows them to convert the apartments back to condos and sell them. They could also buy up some or all of the condos in the property and increase the size of the rental component before exiting.
The apartments are a mix of one- to three-bedroom units, with granite counter tops, stainless steel appliances and hardwood floors. Most units have patios or balconies, and select apartments have see-through fireplaces.
The property’s amenities include a swimming pool, courtyard with outdoor kitchen, a club room with billiards, a media center and wet bar and a fitness center with a yoga room. There’s also a putting green and an outdoor playground.
Walter Coker and Brian Crivella with HFF represented Tonti Properties on the latest sale.
Please see CoStar COMPS #4124119 for additional information on this transaction.