Angelo Gordon in $405m recapitalization of mid-Atlantic apartment portfolio

The New York private equity firm, in conjunction with Federal Capital Partners, is selling three properties and recapping another two to the tune of $405m.

New York-based private investment firm Angelo Gordon and Washington DC real estate firm Federal Capital Partners have announced the sale and recapitalization of a portfolio of multi-family apartment buildings in a transaction valued at $405 million (€303 million).

Of the five properties in the 3,600-unit portfolio, three Maryland properties were sold to an unnamed private investment firm, while two were recapitalized and will continue to be redeveloped by Federal.

“The three properties that were sold have been repositioned and the operations largely stabilized,” Lacy Rice, a partner with Federal, said in a statement. “The properties that were recapitalized will benefit from our continued renovations, as well as rapidly improving sub-market dynamics.”

All of the sold properties are located in Maryland: the 732-unit Seasons of Bel Air in Bel Air; the 727-unit Cooper’s Crossing complex in Landover Hills; and Henson Creek, a 450-unit complex in Forestville. Each of the properties was acquired in 2004 or 2005 by Federal Capital. Cooper’s Crossing was purchased for $47.5 million, while the purchase price for the other two properties was not disclosed.

Federal Capital, founded by former Carlyle pros Rice and Esko Korhonen in 1999, has teamed up with Angelo Gordon in the past. Last year, the two firms announced two other acquisitions in Maryland: the $23.5 million purchase of a 320-unit property in Greenbelt and the acquisition of a 684-unit apartment community in Gaithersburg for an undisclosed price.

In January, a joint venture between Angelo Gordon and property company National Development acquired five office buildings in Downtown Boston’s Seaport District for $74.3 million from Boston-based Berkeley Investments. The same week, the firm also closed on $160 million in capital for its AG Net Lease Realty Fund, which will look to acquire net-leased corporate real estate properties throughout the US. Including leverage, the fund will look to provide around $500 million worth of net lease financing to non-investment grade companies and financial sponsors.