Tryko Partners/Investcorp JV acquires Fairways at Towson Apartments in Baltimore
BALTIMORE, MD — Tryko Partners, LLC and Investcorp have announced the joint venture acquisition of Fairways at Towson Apartments, an 828-unit apartment community in Baltimore. The new ownership will immediately launch a multi-million-dollar capital improvement program at Fairways.
Located at 6906 Donachie Rd., the property includes studio and one- to three-bedroom apartments in one high-rise and 35 garden-style buildings, as well as shared resident amenities. “We recognized an outstanding, value-add opportunity in Fairways,” said Tryko Partners’ Uri Kahanow, director of acquisitions. “This is a property with great ‘bones,’ and while the previous owner renovated a number of units in recent years, most are still waiting for updates. The end result will be a highly competitive product in a multifamily submarket where vacancy rates and rent growth both consistently outperform the greater Baltimore metropolitan area.”
Tryko Partners and Investcorp are dedicating significant capital to interior unit renovations – highlighted by the installation of individual washers/dryers – along with new windows, railings, roofing and siding for the garden buildings, and common area and lobby retrofits in the high-rise. Plans also include electrical upgrades property-wide, along with sizable improvements to common areas, the onsite clubhouse, fitness center and pool.
According to Kahanow, the mix of units and various price points at Fairways distinguish it within the marketplace, as does its amenities package. Residents also benefit from tennis and volleyball courts, a business center, movie theater and car care area.
“Multifamily fundamentals in the Towson market make it a prime investment target, and this property is consistent with Investcorp’s approach of targeting high quality assets that we believe will produce attractive yields in major markets,” said Investcorp’s Ryan Bassett, principal, real estate.
“Additionally, we are pleased to have formed a new joint venture with Tryko Partners. Beyond assisting us in executing the capital plan to upgrade Fairways, this company has a deep local market presence that positions it to leverage economies of scale and deliver strong investment returns.”
“We maintain talented regional asset management, leasing, property management, and maintenance teams,” said Tryko Partners’ Mark Gold, vice president of operations. “Their years of experience here have led to successful properties as well as a reputation for being a responsive, hands-on owner.”
Tryko Partners and Investcorp secured financing for the $100-plus million Fairways acquisition through a Wells Fargo on-balance-sheet loan. CBRE in Baltimore served as broker for the transaction. “This was an exciting acquisition process,” said Chad Buchanan, Tryko Partners’ chief investment officer. “We look forward to a long and beneficial partnership with Investcorp, which offers the support and strength of a global leader. We had been in conversation for some time and waiting for the right fit for a joint venture. Fairways has all of the characteristics we were looking for, along with superior upside potential.”