Executive Summary
Berkadia is pleased to present the sale of Cinnamon Run at Peppertree Farm (the “Property”), a 1,392-unit apartment community delivered in two phases, Peppertree Farm delivered in 1974 (881-units) and Cinnamon Run delivered in 1984 (511-units). The Property is located in Silver Spring, MD a newly transformed bustling D.C. submarket surrounded by a myriad of employment, entertainment, and retail hubs. The offering provides an opportunity to acquire a well-maintained asset in one of the nation’s most resilient multifamily markets in a submarket that is undergoing a rapid transformation.
Cinnamon Run at Peppertree Farm offers convenient vehicular access to the I-270 Biotech Corridor, Downtown Bethesda, Downtown Washington, D.C., the FDA’s White Oak Campus, and Maryland’s largest employer Fort Meade. These employment hotspots put some of the areas strongest private and public sector employers within a short commute of the Property. This includes the I-270 Corridor’s 25M SF of office and R&D space, the National Institutes of Health’s 20,000 employees, FDA White Oak’s 12,000 employees, and downtown Silver Spring’s 7M SF of office. Additionally, the Property is a less than 10-minute drive to the Wheaton Glenmont Redline Metro Station giving residents rail access to downtown Silver Spring, Union Station, Capital One Arena, Downtown Washington, DC and more. The upcoming delivery of the Metro Purple Line will improve the submarket’s connectivity throughout the area giving direct access via the
Silver Spring Metro Station to downtown Bethesda and the University of Maryland College Park and their +40,000 students and +10,000 staff.
Cinnamon Run at Peppertree Farm is an exceptional investment opportunity with consistent in-place cash flow and strong historical and current occupancy. The Property presents an opportunity to preserve affordable housing, capture many occupation efficiencies due to scale, and to purchase at an advantageous price-point below replacement cost with optimal value-add upside in a supply-constrained market
Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit www.berkadia.com/licensing.
4445 Willard Ave | Suite 1200 | Chevy Chase, MD 20815
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WALTER COKER
Senior Managing Director
703.282.8081
walter.coker@berkadia.com
BRIAN CRIVELLA
Senior Managing Director
301.580.6685
brian.crivella@berkadia.com
YALDA GHAMARIAN
Senior Director
240.462.2332
yalda.ghamarian@berkadia.com
BILL GRIBBIN
Senior Director
301.580.6486
bill.gribbin@berkadia.com
INVESTMENT SALES
DC METRO
4445 Willard Ave.
Suite 1200
Chevy Chase, MD 20815
CONTACT US
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With over 95% occupancy and strong tradeout trends, investors have a unique opportunity to acquire an asset performing at near-optimal efficiency
Investment Highlights
Excellent market fundamentals, with high levels of employment growth, annual rent growth nearing 9%, and expected rent growth of 4.7% through 2027
Embedded in the nation’s 4th largest biotech cluster, driving regional employment demand and attracting significant outside investment. Montgomery County is leading the bio/life sciences sector as the NIH, FDA, and Shady Grove Innovation District expand
Median household income is $105,000 but is currently growing at 6.5%, the fastest rate among nearby submarkets andThe Property’s’ zip code is currently achieving 8.8% rent growth.
Heavily supply-constrained market with only 406 new units delivered since 2019 and only 376 projected to be delivered by 2026
Ideal transportation location as the property sits between I-495, I-95, I-270, and I-200. Residents are steps away from the nearest bus station and minutes from Glenmont Metro station.
Exceptional Property Performance
Strong Market
Fundamentals
Biotech
Corridor
Rapidly Improving
Renter Demographics
Favorable
Supply Constraints
commuter
Connectivity
881
units
96%
occupied
1974
built
1,017
avg unit sf
14120 Weeping willow dr
silver spring, md 20906
Sparkling swimming pool
Sleek and modern business center
Fitness center
Playground and outdoor recreation area
Tennis court
Pet community
Community center
community amenities
Renovated Modern Eat-In Kitchen
In-unit washer and dryer
Ceramic tile floor bathrooms
Walk-In Closets
Central Air Conditioning
Cable Ready
in-unit amenities
Amenities
$1.91
PSF rents
PEPPERTREE FARM
$1.97
PSF rents
966
avg unit sf
511
units
95%
occupied
1984
built
CINNAMON RUN
Property
Overview
1,392
total units
Property rents introduce the possibility for advantageous financing initiatives with over 99% of units at 80% AMI
mission
eligible asset
The Property is being offered below replacement cost in a submarket with limited future deliveries
below
replacement costs
© 2023 Berkadia Proprietary Holding LLC
Berkadia® is a trademark of Berkadia Proprietary Holding LLC
Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. This website is not intended to solicit commercial mortgage loan brokerage business in Nevada.
In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing
AMENITIES
Berkadia is pleased to present the sale of Cinnamon Run at Peppertree Farm (the “Property”), a 1,392-unit apartment community delivered in two phases, Peppertree Farm delivered in 1974 (881-units) and Cinnamon Run delivered in 1984 (511-units). The Property is located in Silver Spring, MD a newly transformed bustling D.C. submarket surrounded by a myriad of employment, entertainment, and retail hubs. The offering provides an opportunity to acquire a well-maintained asset in one of the nation’s most resilient multifamily markets in a submarket that is undergoing a rapid transformation.
Cinnamon Run at Peppertree Farm offers convenient vehicular access to the I-270 Biotech Corridor, Downtown Bethesda, Downtown Washington, D.C., the FDA’s White Oak Campus, and Maryland’s largest employer Fort Meade. These employment hotspots put some of the areas strongest private and public sector employers within a short commute of the Property. This includes the I-270 Corridor’s 25M SF of office and R&D space, the National Institutes of Health’s 20,000 employees, FDA White Oak’s 12,000 employees, and downtown Silver Spring’s 7M SF of office. Additionally, the Property is a less than 10-minute drive to the Wheaton Glenmont Redline Metro Station giving residents rail access to downtown Silver Spring, Union Station, Capital One Arena, Downtown Washington, DC and more. The upcoming delivery of the Metro Purple Line will improve the submarket’s connectivity throughout the area giving direct access via the Silver Spring Metro Station to downtown Bethesda and the University of Maryland College Park and their +40,000 students and +10,000 staff.
Cinnamon Run at Peppertree Farm is an exceptional investment opportunity with consistent in-place cash flow and strong historical and current occupancy. The Property presents an opportunity to preserve affordable housing, capture many occupation efficiencies due to scale, and to purchase at an advantageous price-point below replacement cost with optimal value-add upside in a supply-constrained market
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The Team
brandon grisham
Senior Managing Director
253.653.3313
brandon.grisham@berkadia.com
jeff irish
Senior Managing Director
206.286.5013
jeff.irish@berkadia.com
adam tomberg
Director
206.521.7218
adam.tomberg@berkadia.com
mike terry
Director
425.761.1640
mike.terry@berkadia.com
patrick mcglohn
Senior Managing Director
301.941.4610
patrick.mcglohn@berkadia.com
BRIAN gould
Managing Director
301.941.4616
brian.gould@berkadia.com
laura cathlina
Senior Managing Director
312.845.1887
laura.cathlina@berkadia.com
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