RevereCRE

The Stafford Apartments

Opportunity to Acquire Leasehold Interest in Well-Maintained, Stabilized Mount Vernon Asset

Deal Type: Acquisition

Risk Profiles: Value-Add

Property Types: Multifamily, Student Housing

Access Data Room
Access Data Room

716 Washington Pl. | Baltimore, MD 21201

Unique Opportunity to Acquire the Leasehold Interest in a Historic 96-Unit Apartment Asset in the Heart of Mount Vernon, Steps from The Peabody Institute of Johns Hopkins University

Harbor Stone Advisors is pleased to present the opportunity to acquire the leasehold interest in the Stafford Apartments, a stabilized, predominantly student-occupied asset located in Historic Mount Vernon. The Stafford is the preferred facility for off-campus student housing for the Peabody Institute of the Johns Hopkins University which is a 3-minute walk from the Subject Property.

 

The property features (4) Studios, (73) 1 Br-1 Ba, (17) 1 Br-1 Ba, (1) unit that was converted into a leasing office, and (1) unit that was converted into a music room and fitness center. Typical unit features consist of white appliances, wood cabinets, formica countertops, and carpet/vinyl tile flooring. Property amenities include a community center, music practice room, fitness center, and laundry facilities. Prior ownership was a large, institutional owner that expertly maintained the property. Current ownership has completed a handful of capital improvement projects including a refresh of the hallways, updated the fitness center and music room, and renovation of 6 units with a scope of stainless steel appliances, white/gray wood cabinets, granite countertops, updated bathrooms, vinyl plank flooring throughout, and modern hardware/fixtures. The opportunity exists for a new owner to continue this renovation program on the remaining 88 units. Properties of similar vintage that have undergone renovations of a similar scope are achieving rents at least 10% higher on average than the Subject property.

 

The Stafford is being sold subject to a “Ground and Building Lease Agreement” between the Leaseholder (Seller) and the Johns Hopkins University. The agreement allows for the Leaseholder (Seller) to benefit from 100% of the property’s Net Operating Income. The building also has a tax exemption in place due to its student housing status, which offers future tax savings for a new owner. The Stafford has pre-existing debt that can be assumed. The current loan balance is $7,153,468 with an interest rate of 5.08% and loan maturity in 2026.

Investment Highlights

Unique Opportunity to Acquire the Leasehold Interest in a Well-Maintained, Stabilized Asset in Mount Vernon

  • Unit mix consists of (4) Studios, (73) 1 Br-1 Ba, (17) 1 Br-1 Ba, (1) unit that was converted into a leasing office, and (1) unit that was converted into a music room and fitness center.
  • Typical unit features consist of white appliances, wood cabinets, formica countertops, and carpet/vinyl tile flooring
  • Property amenities include a community center, music practice room, fitness center, and laundry facilities
  • The Stafford is the preferred facility for off-campus student housing for the Peabody Institute of the Johns Hopkins University per the terms of the “Ground and Building Lease Agreement”
  • Property has pre-existing debt that can be assumed. The current loan balance is $7,153,468 with an interest rate of 5.08% and loan maturity in 2026

Potential to Increase Rents via Renovation Program

  • Prior ownership was a large, institutional owner that expertly maintained the property
  • Current ownership has completed a handful of capital improvement projects including a refresh of the hallways, updated the fitness center and music room, and renovation of 6 units
  • Opportunity exists for a new owner to continue renovation program on the remaining 88 units
  • Properties of similar vintage that have undergone renovations of a similar scope are achieving rents at least 10% higher on average than the Subject property
  • The Stafford also has a tax exemption in place due to its student housing status, which offers future tax savings for a new owner

Excellent Location in Historic Mount Vernon; One Block from the Peabody Institute of the Johns Hopkins University

  • Ranked a Walker’s Paradise by Walk Score, just steps away from dining, retail, and cultural attractionsClose proximity to Downtown Baltimore and Inner Harbor
  • Major area employers nearby: University of Maryland Medical Center (UMMC) Midtown Campus, Agora Financial, Mercy Medical Center
  • Major area colleges nearby: the Peabody Institute of the Johns Hopkins University, University of Baltimore, Maryland Institute College of Art (MICA)

Location Highlights

Since 2017, enrollment at the Peabody Institute of the Johns Hopkins University has grown over 40% 

Unit Mix

BUILT IN RENTER BASE: Within One Mile of The Stafford 83% of Residents Rent

Photo Gallery

Renovated Kitchen

Classic Kitchen

Photo Gallery - Property Amenities

Community Room with Amazon Package Locker System

Music Practice Room

Fitness Center

On-Site Laundry Facilities

Contacts