Excelsa Properties has acquired a 335-unit community located midway between Washington, D.C., and Baltimore as part of its latest multifamily fund. The company acquired Concord Park at Russett from Starwood Capital Group for $105.5 million. The Laurel, Md., community was acquired by Excelsa US Real Estate II, LP and an Excelsa co-investment vehicle.
Excelsa Properties has assumed debt associated with an interest-only loan for the property that carried a fixed rate of 3.4 percent and had six years left on its term. The buyer supplemented that loan with a fixed-rate, interest-only six-year loan that has a weighted average interest rate of 3.7 percent.
Concord Park at Russett was built in 2005 and acquired by Starwood Capital Group in August 2019 for $86.7 million, according to Yardi Matrix data. Freddie Mac loan had provided a $61.8 million acquisition loan originated by Newmark.
The community offers one-, two- and three-bedroom units ranging from 870 to 1,860 square feet. The units were built with full-size washer-and-dryer units, nine-foot or vaulted ceilings, a kitchen island, fireplace and private patio or balcony. The community’s amenities include a swimming pool, clubhouse with fireplace, business center, theater room, fitness center, yoga and HIIT training studio, library and business lounge. The community is 93 percent occupied.
The new ownership is planning to invest $4.4 million in improvements for Concord Park at Russett. The exterior improvements will include installing a new roof, HVAC system and signage, while also repairing the parking decks. As for the units, Excelsa Properties will install stainless steel appliances, hardwood flooring, kitchen backsplashes and tech packages, while also upgrading lighting fixtures, sinks and faucets.
Second multifamily fund
This is the fourth multifamily property acquisition for Excelsa’s Excelsa US Real Estate II fund. Excelsa US Real Estate I and II have acquired nearly $600 million worth of communities across the U.S. since 2019.
Excelsa US Real Estate II fund closed its other acquisitions in December 2021, February 2022 and October 2022. Jon Woods, COO at Excelsa, said in prepared remarks that the fund is continuing to seek out strategic multifamily acquisitions.
