A 28-unit garden apartment development in northeast Baltimore has hauled in more than $1.9 million, a property the seller purchased for more than $200,000 roughly six years ago.
The Midwood at 5001 Midwood Ave. consists of a mix of single and two bedroom units. 5001 SPRE LLC, which sold the property, fully renovated the apartments in 2013. According to state tax records 5001 SPRE bought the property for $255,000 in May of 2012. As of July the state valued the property at $740,000.
“This was a rare opportunity to acquire a gut-renovated, mid-sized garden apartment asset in (northeast) Baltimore. The local purchaser plans to reposition management and implement a plan to optimize expenses and bring rents to market,” Justin Verner, senior advisor and leader of SVN RealSite’s multifamily practice, said in a statement.
Verner and SVN RealSite Advisor Brooks Healy represented seller in the deal.
The buyer, according to state property records, is Midwood Holdings LLC. The investor’s address included on state tax records is for a postal and shipping center in Mount Vernon.
The Baltimore metro apartment market in recent years has experienced a spike in new apartment building.
At the start of the second quarter, according to numbers from CoStar Group, there were 4,500 units in the area under construction. Last year 3,700 apartments were delivered and pushed vacancy up slightly to 7 percent.
But the commercial real estate information firm is projecting the number of deliveries to drop to 2,000 units in 2019. That’s the lowest level in the metro area since 2011.
Demand for apartments is expected to remain strong in part because of steep increases in the price of housing. Prices for single-family homes in the Baltimore area, pushed by a lack of supply, have reached levels not seen since before the housing bubble burst roughly a decade ago.
While there’s been a surge in supply of apartments in Baltimore most of those units have been high-price luxury units in trendy neighborhoods. Apartments like The Midwood, which according to rental site Apartments.com is renting two bedroom units for $880 to $900 a month, represents a more affordable option in a less in demand portion of the city.