Newly launched SKS Realty Partners of Rockville, MD has joined with MRK Partners of Los Angeles, CA to acquire Amber Commons, a 198-unit garden apartment community in Gaithersburg, Maryland, for $51.5 million. Over the next year, the partnership plans to convert the property to affordable housing utilizing Low-Income Housing Tax Credit (LIHTC) syndication. The seller, RST Development, was represented by CBRE.
Amber Commons offers apartments with one, two, and three bedrooms, some with dens, and all with balconies or terraces. The community was built in 1968 and gut-renovated in 2009. The new ownership plans to invest approximately $8 million to upgrade individual apartments and common areas.
Located within the I-270 Technology Corridor at 7 Prism Place, the community provides convenient access to public transportation, extensive retail and entertainment amenities, and major employers such as the National Institute of Standards and Technology, Johns Hopkins-Montgomery County, and Adventist Healthcare at Shady Grove Medical Center. Residents enjoy a swimming pool with sundeck, clubhouse, fitness center, business center, and playground.
“Although SKS is focused on the acquisition of market-rate multifamily assets, we were able to consider alternative uses for Amber Commons because of our partnership with MRK,” said Kevin Smith, SKS Managing Partner. “This is a great opportunity to provide a well-located and attractive community as an affordable option to Montgomery County residents.”
“Acquiring Amber Commons with the intent of converting to affordable housing will ensure that the existing residents can remain in place for the long term, and not have to worry about being priced out of an otherwise expensive market,” said Sydne Garchik, Founder and President of MRK Partners.