CBRE Arranges Sale and Financing of 402-unit Complex Huntington at King Farm: Phase II
Peterson Companies purchased the multifamily property located in Rockville, Maryland
September 25, 2023
CBRE announced the sale of Huntington at King Farm: Phase II, a 402-unit multifamily community in Rockville, Maryland. Peterson Companies, one of the largest privately-owned real estate development companies in the Washington, D.C. region, purchased the property on September 21, 2023.
CBRE Mid-Atlantic Multifamily Investment team members Martha Hastings, Bill Roohan, Mike Muldowney, Michael Rudolph, Brian Margerum, Brian McAuliffe, Bob Dean, Jonathan Greenberg, Kemp Broujos, and Zach Stone represented the seller in the transaction. CBRE’s Mid-Atlantic Debt and Structured Finance team members David Webb, Maxi Leachman, Justin Glasgow, Matt Hodson and Jones Veith provided the financing for the buyer.
Located at 801 Elmcroft Boulevard in Rockville, Huntington at King Farm: Phase II is a unique multifamily property in the prestigious King Farm neighborhood. The community has a total of 402 rental units, 165 of which are townhomes with private parking garages. Originally built in 2000 with generously sized floor plans of nearly 1,200 square feet on average, the community has benefitted from by long-term institutional ownership that maintained the property to a high level. Since 2011, approximately 342 units have been renovated.
Huntington at King Farm: Phase II is in a favorable location, walkable to King Farm's retail and the Rockville Metro Station and situated in the second-largest life sciences research talent cluster along the I-270 Biotech Corridor proximate to the Shady Grove Innovation District (breaking ground 2024). The property is currently 95.52% occupied and Peterson Companies has renovations planned for the remaining units, demonstrating their commitment to enhancing the community for all residents.
According to CBRE’s Mid-Atlantic Multifamily H1 2023 Report, sales volume in the Mid-Atlantic through the first six months totaled just $1.94 billion, a 64 percent decrease year-over-year, and 46 percent below the long-term H1 average since 2014. Despite the decrease recorded in H1, the latter half of the year historically records a higher sales volume, and investors are still active in the market. Strong demand and market fundamentals offer strategic investment opportunities for multifamily buyers and point toward a resurgence beginning in the latter half of 2024.
About Peterson Companies
As one of the largest privately-owned real estate development companies in the Washington DC region, Peterson Companies consistently delivers some of the area’s most exciting mixed-use retail, residential and commercial destinations. The company has developed, managed and leased more than 30,000 residential units and has created such exceptional landmarks as National Harbor, Downtown Silver Spring, Fair Lakes, and Fairfax Corner. With a proven ability to move quickly on opportunities to reshape and enhance local communities, Peterson Companies creates vibrant residential and business districts that benefit all who live and work in our region. For more information about the Peterson Companies, please visit www.petersoncos.com.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.