We are very pleased to report that we successfully closed on the acquisition of Capital Crossing located in Suitland, MD. The $52,000,000 purchase price represents an in-place cap rate of 5.75% and a price per unit of $144,847.
Capital Crossing is a 359-unit, garden style community located in Suitland,MD, offering a tangible upgrade program and outstanding accessibility. Southern Prince George’s County Class B apartment market is one of the strongest performers in the Washington D.C. region. Vacancy rates for the submarket remain among the lowest in the region at 4.6%. The property is located within a 5-mile radius of 83 million sf of office/industrial and 18.9 million sf of retail. It provides direct access to employment centers, retail, and restaurants in the Washington Metro via Pennsylvania Ave (MD Route 4), the Capital Beltway (I-495/I-95), and the Suitland METRO Station. Located one mile from Capital Crossing, one of the most dynamic county developments in the last decade, includes 1 million sf of mixed-use with retail, for-sale condos, a senior community, and the Suitland Federal Center, which employs over 10,000 people. With no imminent multifamily developments in the submarket, vacancy is projected to remain low, supporting the ability to significantly raise rents through property upgrades. The Delta Associates 2018 Fourth Quarter Class B Apartment Market Report projects continued strong rent growth in the Andrews/Suitland submarket due to property renovations and elimination of value priced inventory.