Federal Capital Partners (FCP) has sold an 11-property portfolio totaling 1,731 units for $302 million to an affiliate of Strata Equity Group, the company announced Tuesday. The properties are located in St. Charles, Md., a master planned community 13 miles from the Capital Beltway.
The acquisition marks San Diego–based Strata’s first investment in the Mid-Atlantic region. The firm has more than $2.5 billion worth of assets under management and currently owns and operates approximately 18,000 apartment units across the United States and an additional 16,000 acres of land in Southern California.
FCP had acquired the portfolio in December 2009 as part of its American Community Properties Trust (APO) acquisition, for $43.6 million plus the assumption of debt. The initial APO purchase (FCP subsequently privatized APO) included 3,200 multifamily units, 230,000 square feet of office space, and more than 4,500 acres of land entitled for over 11,000 residential units and 5 million square feet of commercial development. Most of the assets were located in St. Charles and Puerto Rico.
Over the past eight years, FCP says, it repositioned and sold portions of the APO portfolio. Early dispositions included interests in a Florida home builder and apartments in Baltimore and Richmond. In August 2017, FCP sold 2,400 acres of residential property entitled for more than 7,000 homes in St. Charles to Lennar Corp., for $53.7 million.
Other material commercial land dispositions in St. Charles included the $13 million sale of land to Competitive Power Ventures (CPV) for the construction of its 725-megawatt, natural gas–fueled power plant; the $9.2 million sale of land to Aggregate & Dirt Solutions and Clean Earth of Greater Washington for industrial recycling; and the sale of a St. Charles office building for $5 million.
FCP maintains ownership of five apartment communities and more than 288 acres zoned to accommodate 208 market-rate and 180 active-adult apartments, 160,000 square feet of neighborhood-center retail uses, and over 2 million square feet of heavy industrial use.
The CBRE Mid-Atlantic Multifamily Investment Sales and Debt and Structured Finance teams handled the marketing, sale, and financing of the portfolio.
