The $150 million sale of the Residences at Annapolis Junction has earned a CoStar Impact Award as selected by a panel of local industry professionals as the sale/acquisition of the year in Baltimore, not only for its above-average price point, but also for the timing of the transaction, which closed in three months just before a drop-off in market value.
Located in the southern suburbs of Baltimore, the Residences at Annapolis Junction is a 416-unit luxury apartment complex opened in 2017 by Somerset Construction Co. Virginia Beach, Virginia-based Armada Hoffler Properties had owned the multifamily property since 2020, but the market became increasingly turbulent during 2022.
A team from Cushman & Wakefield began marketing the asset in April and closed in July with a sale to Charlottesville, Virginia-based Castle Development. At $360,577 per unit, the complex sold for roughly $100,000 per unit more than the market average sale price for greater Balitmore.
The deal closed just before market values began to decline from their peak of $260,000 per unit, according to CoStar data. Those values dropped to just over $138,000 per unit in the first quarter of 2023. The transaction marked an overall $37.5 million price increase from the last sale in 2020.
About the Property: Located at 10125 Junction Drive in Annapolis Junction, the complex is sandwiched between Columbia, Maryland, and the Baltimore-Washington International Thurgood Marshall Airport. It was 97% occupied at the time of sale.
What the Judges Said: “The speed and pricing of this sale during 2022 represents the highest level of professional judgment and skill in upholding the value of a property in an unstable market,” Lindsay Thompson, a professor of practice at Johns Hopkins Carey Business School, said.
They Made It Happen: The Cushman & Wakefield team that marketed the property includes Executive Managing Director Jorge Rosa and Managing Director Anthony Liberto. Armada Hoffler’s team comprised Vice President of Business Development Craig Ramiro and Director of Corporate and Investor Communications Chelsea Forrest.
