Broadtree Residential Inc., a private real estate investment trust managed by Broadstone Real Estate LLC, has purchased a portfolio of three Class A multifamily apartment communities from affiliates of Chesapeake Realty Partners for $137.5 million in the REIT’s first UPREIT transaction.
Two of the assets, 1901 S. Charles and 2 East Wells, are located in Baltimore, Maryland, and the third, The Overlook, is located in greater Harrisburg, Pennsylvania.
In total, the properties are comprised of 633 residential and two commercial units. All three communities are managed by WPM Real Estate Management, a Baltimore-based third-party property manager.
In an UPREIT transaction with Broadtree, property owners contribute real estate to the fund’s operating partnership on a tax-deferred basis in exchange for equity, in the form of operating partnership units.
As a result of this transaction, the sellers contributed more than $25 million of equity into the operating partnership of Broadtree Residential, and now have interest in a multifamily portfolio offering.
“This transformational transaction is the first of what we hope will be many UPREIT deals for Broadtree,” said Chris Czarnecki, Broadtree’s CEO.
1901 South Charles is a Class A mid-rise multifamily community developed in 2012 and consists of 193 units, with an average unit size of 842 square feet. 1901 South Charles is the first wood-frame residential building in Baltimore to receive LEED Gold certification. Community amenities include controlled access, a courtyard, fitness center with yoga studio, and a resident’s club.
Built in 2015, 2 East Wells is a Class A mid-rise multifamily community with one five-story building with 152 units with an average unit size of 843 square feet. Two ground floor retail spaces exist at the site as well, currently tenanted by the Baltimore Soup Company and Minnow, a high-end seafood restaurant. 2 East Wells is a green community built to LEED Gold standards, with community amenities including climate-controlled storage, a garden courtyard with grill and hammocks, rooftop decks and fitness center, and a resident’s club.
The Overlook is a Class A mid-rise multifamily community built in 2014, located in Camp Hill, Pennsylvania (greater Harrisburg) featuring 288 units within six residential buildings and an average unit size of 926 square feet. The community was built to LEED Silver standards and includes a 5,000-square foot clubhouse with fire pit and business center, a salt water swimming pool, and fitness center with yoga studio.
Broadtree Residential invests in multifamily properties and oversees a $350 million portfolio, comprised of eight multifamily communities and 2,181 total units. The offering is open to accredited investors with a minimum initial investment of $200,000.