272 multi-family residential units

In 2016, Warren Private acquired a 272 apartment multi-family complex in Capitol Heights, Maryland, USA for $24.3 million in conjunction with our US operating partner Dragone Realty Investments. 

Built in 1964, the property comprises nine buildings and 292 surface car spaces on 11 acres. The grounds of the property contain a swimming pool and substantial landscaped areas.

The Property benefits from easy access to employment and retail centres throughout the Washington DC metropolitan area as the Suitland Metro Station and the Capitol Heights Metro Station are two miles away and the I95/I495 Capital beltway is just three miles away. The Suitland Federal Centre, which hosts 6,000 US Government employees in 2.5m sq ft of space on a 226 acre site, is two miles from the property.

Residents at the property are also within one mile of neighbourhood retail centres which are anchored by national tenants such as Giant, Shoppers Food Warehouse, Marshalls, CVS and TGI Friday’s.

Post acquisition, we spent c.$6.5m on capital renovation works that allowed for a substantial upgrade of all apartments and internal communal areas, plus the improvement of all amenities at the property. These renovations and improvements set the property apart from competing rental communities, allowing us to achieve higher and more stable rents.

At acquisition, the property was known as Lexington Court but has been rebranded as Verona at The Park.

The property was sold for $47.7m in Q4 2021. The net sales proceeds, combined with distributions made during the investment period, provided a pre-tax equity profit of c.72% and an IRR of c.18%.

Purchase Price: $24.3 million
Location: Maryland, USA
Investment Period: 5 years
Profit on Investment: c.72%
IRR on Investment: c.18%