RevereCRE

The Druid Apartments

Opportunity to Acquire a Unique Multifamily Asset with Value-Add Upside in Reservoir Hill

Deal Type: Acquisition

Risk Profiles: Value-Add

Property Types: Multifamily

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The Druid 

Apartments

Access Data Room

2028 Mount Royal Terr. | Baltimore, MD 21217

The Druid 

Apartments

2028 Mount Royal Terr. | Baltimore, MD 21217

Access Data Room

Opportunity to Acquire a Unique Multifamily Asset with Value-Add Upside in Reservoir Hill

2028 Mount Royal Terr. | Baltimore, MD 21217

 

Harbor Stone Advisors is pleased to present the opportunity to acquire The Druid Apartments, a unique multifamily asset with value-add potential. Located in Reservoir Hill, the property is less than a 10-minute walk away from the Maryland Institute College of Art (MICA) and University of Baltimore. The Druid Apartments features (11) 1 Br-1 Ba, (1) 1 Br-1.5 Ba, (4) 2 Br-1 Ba, (2) 2 Br-1.5 Ba, and (3) 3 Br-2 Ba. Typical unit features consist of white appliances, wood cabinets, laminate countertops, engineered bamboo/carpet/ceramic tile flooring, and in-unit washer/dryers in some units. Current ownership completed an extensive renovation of the property in 2012 which included apartment upgrades, new roof and awning, refurbished lobby and corridors, replacement of 50% of the hot water heaters and 90% of heat pumps, and other projects.

 

Recently, the seller renovated two units with stainless steel appliances, new cabinets, granite countertops, and updated bathrooms. The opportunity exists to continue this renovation program on the remaining 19 units. Properties of similar vintage that have undergone renovations of a comparable scope are achieving rents at least $200 higher on average than the Subject property. Other value add opportunities include implementing a water reimbursement program upon renewal and/or new lease and monetizing the storage area in the basement. There are currently small storage lockers in the basement that are not utilized by current tenants. A new owner could convert that area into two or three large storage rooms, which would be more desirable to tenants.

2028 Mount Royal Terr. | Baltimore, MD 21217

 

Harbor Stone Advisors is pleased to present the opportunity to acquire The Druid Apartments, a unique multifamily asset with value-add potential. Located in Reservoir Hill, the property is less than a 10-minute walk away from the Maryland Institute College of Art (MICA) and University of Baltimore. The Druid Apartments features (11) 1 Br-1 Ba, (1) 1 Br-1.5 Ba, (4) 2 Br-1 Ba, (2) 2 Br-1.5 Ba, and (3) 3 Br-2 Ba. Typical unit features consist of white appliances, wood cabinets, laminate countertops, engineered bamboo/carpet/ceramic tile flooring, and in-unit washer/dryers in some units. Current ownership completed an extensive renovation of the property in 2012 which included apartment upgrades, new roof and awning, refurbished lobby and corridors, replacement of 50% of the hot water heaters and 90% of heat pumps, and other projects.

 

Recently, the seller renovated two units with stainless steel appliances, new cabinets, granite countertops, and updated bathrooms. The opportunity exists to continue this renovation program on the remaining 19 units. Properties of similar vintage that have undergone renovations of a comparable scope are achieving rents at least $200 higher on average than the Subject property. Other value add opportunities include implementing a water reimbursement program upon renewal and/or new lease and monetizing the storage area in the basement. There are currently small storage lockers in the basement that are not utilized by current tenants. A new owner could convert that area into two or three large storage rooms, which would be more desirable to tenants.

HIGHLIGHTS

Opportunity to Acquire a Multifamily Asset with Minimal Deferred Maintenance in Reservoir Hill

  • Unit mix consists of (11) 1 Br-1 Ba, (1) 1 Br-1.5 Ba, (4) 2 Br-1 Ba, (2) 2 Br-1.5 Ba, and (3) 3 Br-2 Ba
  • Typical unit features include white appliances, wood cabinets, laminate countertops, engineered bamboo/carpet/ceramic tile flooring, and in-unit washer/dryers in some units
  • Current ownership completed an extensive renovation of the property in 2012 which included apartment upgrades, new roof and awning, refurbished lobby and corridors, replacement of 50% of the hot water heaters and 90% of heat pumps, and other projects

Ability to Create Value and Increase Rents Via Renovation Program

  • Recently, the seller renovated two units with stainless steel appliances, new cabinets, granite countertops, and updated bathrooms; the opportunity exists to continue this renovation program on the remaining 19 units 
  • Potential to increase rents at least 15% based on nearby rent comparables
  • Implement a water reimbursement program upon renewal and/or new lease 
  • Monetize the storage area in the basement by creating two or three larger storage rooms

Excellent Location in Reservoir Hill Near 1-83; Less Than a 10 Minute Walk Away from MICA and UB

  • Ranked a Walker’s Paradise by WalkScore; various modes of public transportation are located less than a half mile away from property including the Light Rail and CityLink bus stops
  • Located 1 mile away from Druid Hill Park, one of the largest green spaces in Baltimore City
  • Major area employers nearby: Johns Hopkins University, Maryland Institute College of Art (MICA), University System of Maryland, University of Maryland Medical Center (UMMC) Midtown Campus
  • Major area colleges nearby: MICA, University of Baltimore (UB), Coppin State University, Johns Hopkins University

NEIGHBORHOOD SPOTLIGHT: RESERVOIR HILL

 

The Druid Apartments are located in the Reservoir Hill neighborhood of West Baltimore. Walking distance to Maryland Institute College of Art (MICA), one of the country’s premier art schools, with an enrollment of 3,500. University of Baltimore is also in close proximity and has an enrollment of 5,627 students.

The subject property is located blocks to Druid Hill Park, one of the largest green spaces in Baltimore City. The park features 745 acres of athletic fields, picnic areas and pavilions, historic monuments, a 1.5 mile walking loop, and a “disc golf” course. Minutes to the historic Bolton Hill neighborhood, which features major landmarks such as MICA, the former home of author F. Scott Fitzgerald, and the Francis Scott Key monument.

 

Other nearby colleges include the prestigious Johns Hopkins University (JHU) with an enrollment of 21,000 students, Coppin State University with 3,000 students, and Baltimore City Community College (BCCC) with 15,000 students.  Major area employers include Johns Hopkins University with 25,000 employees, University of Maryland Medical System with 9,830 employees, University System of Maryland with 9,111 employees, and MICA with 2,142 employees.

Located minutes to the Reservoir Square Redevelopment, a mixed-use development that will feature up to 380 residences and about 40,000 SF of commercial and office space. Baltimore’s Board of Municipal and Zoning Appeals voted unanimously on July 27th to approve the construction of 120 townhomes in the 800 block of West North Avenue, the first of two key hurdles the developers need to clear before proceeding with construction.

 

Convenient access to public transportation, with both metro and light rail stops nearby. Minutes to I-83, and a 10-minute drive to Downtown Baltimore. Baltimore Penn Station, with access to Amtrak trains and the MARCcommuter train to Washington D.C., is located in close proximity. Penn Station is set to receive a $90M redevelopment, which will include the addition of retail, residential, and office space.

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