Cantor Fitzgerald JV Completes Second Full-Cycle DST Transaction of 2021
A joint venture between a subsidiary of Cantor Fitzgerald Investors LLC and Hamilton Zanze & Company has sold The Quarters at Towson Town Center in Towson, Maryland.
A joint venture between a subsidiary of Cantor Fitzgerald Investors LLC and Hamilton Zanze & Company has sold The Quarters at Towson Town Center in Towson, Maryland.
Cantor Fitzgerald, a sponsor of 1031 tax-deferred exchange investments, facilitated the sale on behalf of one of its 1031 exchange/Delaware statutory trust investment programs. Due to contractual obligations, the company could not disclose the property’s original purchase price or sale price.
According to public filings with the Securities and Exchange Commission, CF Towson Multifamily DST, a Regulation D private placement offering, launched in August 2018 and raised $40.1 million in investor equity.
“We are pleased to deliver an attractive return for investors with this sale, our second full-cycle DST transaction of 2021,” said Jay Frank, president of Cantor Fitzgerald Capital. “The sale resulted in a total return of 130 percent (calculated based on the aggregate original investment) resulting in an internal rate of return…of 10 percent over the approximately three-year hold period.”
The Quarters at Towson Town Center is a 430-unit, Class A midrise apartment community that was built in 2009 and renovated in 2019. Community amenities include two club rooms, two fitness centers, a swimming pool, a business center, and structured parking. The property is located in central Towson with access to local and regional areas of interest in and around greater Baltimore.
“Since purchasing the property in August 2018 we implemented proactive asset management and completed value-add renovations, which kept occupancy above 94 percent, even throughout 2020, and ultimately positioned the property for a profitable exit for investors,” said Anthony Ly, director of dispositions for Hamilton Zanze.
Newmark, a multifamily brokerage firm, represented the seller on the disposition.
Cantor Fitzgerald’s real estate investment management portfolio currently includes more than 6,000 multifamily units and approximately 12.3 million square feet of office, industrial, multifamily and retail space across 160 properties. In the last two years, including the activity of its affiliate Newmark, Cantor Fitzgerald participated in more than $150 billion of total real estate transactions.
