1960s-Era Bethesda Apartment Buildings Trade Hands For $86M
The first ownership change has just occurred for two Bethesda multifamily buildings that were constructed more than half a century ago.
Bethesda-based Aldon Management, the developer of the buildings, which total 329 units, sold the properties for a combined $85.5M to D.C. metro-based investment company Corner Lot Advisors.
Greysteel, which brokered the deal on behalf of Aldon, announced the news in a press release this week.
The building at 8200 Wisconsin Ave., which was built in 1967 and has 245 units and 1K SF of retail, sold for $63.25M, according to Maryland property records.
The Middlebrook Apartments building, developed in 1962 at 5015 Battery Lane with 84 units, sold for $22.25M.
Corner Lot Advisors is planning renovations, including unit reconfigurations to add bedrooms and upgrades to amenity spaces, according to the release. The owner will designate about 25% of the units at 8200 Wisconsin Ave. for residents earning up to 50% and 60% of the area median income.
Greysteel’s Kyle Tangney, Herb Schwat and Nigel Crayton represented Aldon, and Greysteel's Daniel Hartnett and Jack Whitman provided capital finance consulting for the seller.
“It was incredibly special to represent Aldon Management, who were the original developers of these properties back in the 60’s,” Tangney said in the release. “The high quality of care and attention Aldon showcased in their stewardship of the properties translated directly to the robust response from the investment community when marketing the communities.”
Aldon Management, the property management subsidiary of Bethesda-based Brown Development, was founded in 1947 by brothers Alvin and Donald Brown after they returned from World War II. The company manages seven properties in South Carolina, North Carolina, Texas, Utah and Maryland, according to its website.
Its parent company, in an effort to redevelop an assemblage of six garden-style properties it owns in Bethesda, is developing the Battery Lane District. The approved project is set to include 1,130 apartments, 12K SF of retail, streetscape improvements and new public green spaces. The 315-unit first phase began moving forward in 2022.
Corner Lot Advisors in 2022 purchased a 156-unit Laurel, Maryland, apartment community in a joint venture, but it otherwise has a scant online presence. The LinkedIn page of its founder, Chip Davis, indicates he started the company in 2011, but it links to an unfinished website with no information on its portfolio.
