A New York-based real estate investment firm has purchased a greater Washington DC area multifamily property out of bankruptcy.
Pantzer Properties acquired The Georgian, a high-rise multifamily property located at 8750 Georgia Avenue in Silver Spring, Maryland. The firm purchased the 891-unit, Class B+ asset from Stellar Management for approximately $168 million. The property also includes approximately 25,255 square feet of retail space and a two-level, 594-car subterranean parking garage.
Pantzer bought the two-tower asset out of bankruptcy, where the debt stack was approximately $215 million. The property had been in receivership for nearly three years and in bankruptcy for one year.
“The deal had a variety of disconnects that we liked. It was over-levered, it had been in bankruptcy and it had been in receivership,” Jason Pantzer, co-president of Pantzer Properties told PERE. “We look for special situations like these where we can capitalise on these disconnects. That’s what we really like to do.”
Pantzer purchased the property through its opportunistic real estate funds, Panco Strategic Real Estate Funds I and II. The Georgian will be renamed The Point at Silver Spring and will be managed by Pantzer's management affiliate, Panco Management.
Pantzer has been quite active in the greater Washington DC area, having purchased nearly $1 billion in properties over the last three years. For example, in March, the firm purchased The Point at Annapolis, a 300-unit Class A multifamily community at 1901 West Street in Annapolis, Maryland. In 2011, it acquired The Point DC Portfolio, consisting of eight multifamily properties totalling 2,580 units in northern Virginia and Maryland for $460 million.