Case Study: The Daley at Shady Grove, Rockville, MD

Premier Property in Rockville, MD is First to Expand Black Creek Group’s Multifamily Holdings

During 2019, Black Creek committed to expanding its multifamily holdings through the acquisition of recently built, core-plus assets in high-quality suburban locations. The Daley at Shady Grove Metro in Rockville, MD, a suburb of Washington D.C., marked the first of three properties the company purchased during the year.

The 333-unit property was over 90 percent occupied and ideally located in one of the most affluent counties in the country with strong submarket demographics including household incomes, employment drivers, and strong historical and projected population growth.

90% Occupied At time of acquisition
Adding Value Purchase price was 17% below replacement cost

Additionally, due to the rise in construction costs and the county’s thoughtful growth pattern, there was minimal future supply projected for the area.

With the brokerage community aware of Black Creek’s strategy for targeting properties in growing markets that offer residents easy access to public transportation, shopping centers, restaurants and other necessities, the company’s multifamily team was approached by a broker who believed The Daley was an ideal match.

Not only did the property meet the location qualifications, but it brought a unique aspect as it is part of an expanding master planned community that will include additional for-sale housing, condos and townhomes, and retail creating a community within the larger submarket. Knowing that this transaction was one that would generate interest from a variety of buyers, Black Creek used both its long-standing track record and its relationships across the industry to secure the deal quickly.

Summary

Black Creek used its proven investment strategy, long-standing track record and relationships across the industry to drive value for investors in the multifamily space.

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