…but there is one notable property that has changed hands for the third time in 9 years!
Maybe it’s the COVID pandemic, or maybe it’s that so many land and commercial Frederick County, Maryland properties have sold over the last 4 years that investors are taking a breather from multifamily acquisitions … or maybe its something else. In any event, after three quarters of CRE activity (Q1 – $153m, Q2 – $47m and Q3 – $33.8m) sales volume has only reached $233 million thus far in 2020. At this pace, it looks like the year everyone wants to forget may close out under $300 million, which we haven’t seen since 2015.
Putting this is perspective, consider that over the previous four years, the total CRE sales in our little special corner of the world nearly topped $1.3 billion — $604 million in ’19, $387 million in ’18, $304 million in ’17 and $306 million in ’16. And, yes, the primary driver that pushed the volume to these heights was the transfers of existing Multifamily projects, equaling over $506 million or 39% of all CRE sales volume over the last 4 calendar years.
Thus far in 2020, multifamily product has only accounted for 13% of CRE sales.
All that stated, guess what type of product topped the charts in Q3 2020?!
You guessed it … multifamily.
Brooklawn Apartments sold for $10,800,000 last August to a Washington, DC based venture calling itself Frederick Brooklawn I, LLC. The broker of the deal was Melnick Real Estate Advisors, based out of Bethesda, Maryland with offices also in Virginia, Florida and Texas.
Interestingly enough, we devoted almost an entire blog post to the last time this property sold in December 2012, when it transferred at the price of $9.6 million. And, 23 months prior to that, it had sold for $7.6 million. So, this vintage 1965 – 86-unit apartment building has been tossed around a few times over the last 9 years. But, with its prime Baker Park location on the west side of the downtown Frederick, this location will likely see some more glorious years ahead.
Stay tuned for more updates on third quarter actions in upcoming posts!
Rocky Mackintosh, President of MacRo, Ltd., a Land and Commercial Real Estate firm based in Frederick, Maryland, has been an active member of the Frederick community for over four decades. He has served as chairman of the board of Frederick Memorial Hospital and as a member of the Frederick County Charter Board from 2010 to 2012. He currently serves as chairman of the board of Frederick Mutual Insurance Company. Established in 1843, it is one of the longest enduring businesses in Frederick County.