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The Goldstar Group Acquires 186,000 SF Industrial Warehouse in Manassas, Virginia for $9.35M

Asset is currently 92% leased to two tenants

The Goldstar Group has announced the acquisition of a 186,00 square foot industrial warehouse facility located in the Manassas sub-market of Northern Virginia for $9.35 million. Stephen Perkins of Newmark Grubb Knight Frank represented both the buyer and the seller, Euclid Avenue Investors, LLC, in this transaction. The asset, positioned at 9061 Euclid Avenue, is currently 92% leased to two separate creditworthy tenants. Metropolis Capital Finance, led by Clifford Mendelson, arranged for the equity and the debt financing for this transaction. “We are pleased to have represented Goldstar in this transaction,” said Clifford Mendelson, CEO of Metropolis Capital.

Constructed in 1977 and contained on ten acres of land, the industrial warehouse currently supports the real estate requirements of two companies including light manufacturing, storage and logistics operations. The Goldstar Group intends to maintain the property as a large bay property, to leverage the existing zoning which allows for storage outside of the building. The company intends to re-evaluate its options for the building, including possible re-development plans to create additional density, as economic conditions change in the local marketplace.

The industrial warehouse building is within close proximity to VA Route 28 (Centreville Road) and is approximately twelve miles from Interstate 66 and thirty miles from Washington-Dulles International Airport.

“This asset supports every key fundamental in our commercial acquisition criteria, including below market rents and strong in-place leases from high quality tenants,” stated Michael Brodsky, CEO, The Goldstar Group. “Outside of our multi-family portfolio, we continue to seek commercial building opportunities to support our value-add strategy, and add high-quality assets to our portfolio of more than one million square feet of commercial properties under ownership and management.

“Our acquisition strategy focuses on well-located commercial and multi-family properties in the Mid-Atlantic region, ,” Brodsky added. “We are attracted to opportunities that enable our team to add value with the incorporation of aggressive leasing and asset management programs.”

The Goldstar Group is a privately-held firm strategically focused on commercial real estate investments and services on behalf of its clients and principals. Primarily focused in the Washington DC metropolitan area, Goldstar’s core capabilities include acquisitions, development, asset and property management, advisory services and capital markets transactions. Founded in 1995, Goldstar has more than 20 years of experience investing, developing and managing all classes of real estate and financial products on behalf of our clients. For additional information visit www.TheGoldStarGroup.com.

Originally published on dc.citybizlist.com

Real estate firm buys Shelter Cove Apartments in Odenton

By RICK HUTZELL rhutzell@capgaznews.com

A real estate investment firm said Wednesday it paid $43 million for the Shelter Cove Apartments, a 300-unit complex in Odenton.

The Goldstar Group of Bethesda said it would continue ongoing interior renovation of approximately 200 units, expected to be completed within three years.

Shelter Cove Apartments are located within the Odenton Town Center, an area targeted for economic development by the county for several decades.

Goldstar partner Eric May said Shelter Cove benefits from being near the gates of Fort George G. Meade, the nation’s fourth-largest military base. Approximately 56,000 people work at the post.

“Our team identified this asset as a strong value-add opportunity when it was brought to market. Purchased below replacement cost, the asset is expected to achieve significantly higher returns upon the completion of the renovation package,” May said in a prepared statement.

The sale is one of a series of recent developments affecting rental housing around Fort Meade.

Work was completed last year on The Flats170 apartments, the residential portion of a 55-acre, mixed-use development in Odenton. Later this summer, the Army and Corvais Militiary Living will open Reese Crossings, a 432-unit apartment complex for enlisted personnel on Fort Meade.

On the other side of Fort Meade, Home Properties of Rochester plans to build a 300-unit apartment complex off Winterson Road in Linthicum. Construction is expected to start later this year with completion in 2016.

Goldstar purchased the Odenton property from Mid-Atlantic Multifamily Group, a subsidiary of Transwestern. Built in 1974, the average rent is $1,338 per month.

 
Originally published on capitalgazette.com

FBI screening center sells for $93.5 million

A joint venture including Bethesda’s Goldstar Group has sold a Vienna complex housing the FBI’s Terrorist Screening Center for $93.5 million, or about $415.50 per square foot, to a pension fund managed by California-based GI Partners, according to sources familiar with the deal.

The property at 801 Follin Lane, also known as Liberty Park at Tysons, includes the FBI’s 190,000-square-foot screening center and a 35,000-square-foot warehouse leased by the Navy Federal Credit Union, according to a news release issued by Goldstar and partner Pearlmark Real Estate Partners LLC. The sellers did not disclose the sale price, tenant or buyer in their release.

Eastdil Secured LLC brokers Collins Ege, John Kevill, Nick Seidenberg and Sean McDermott brokered the deal on behalf of Goldstar and Pearlmark. The site off Chain Bridge Road also includes the potential for an additional 200,000-square-foot building provided the credit union’s warehouse were demolished to make way for the new structure.

The complex was developed in the early 1970s but was completely renovated in 2010 for the FBI. Goldstar has been retained to handle property management at the site.

The property made headlines over the summer when a group of Vienna residents complained about air conditioning noise coming from the FBI complex. The General Services Administration, which handles the federal government’s leasing needs, agreed to step in and work with Pearlmark and Goldstar to reduce the noise being generated from the air conditioners.

 
Originally published on bizjournals.com

The Goldstar Group Acquires 265 Units at Barracks West in Charlottesville, VA

DC-Area investment group pays $13.3 million in off-market short sale; plans $4.5 million renovation.

Bethesda, MD (PRWEB) October 01, 2012

The Goldstar Group of Bethesda, MD has acquired 265 rental condominium flats and townhomes at Barracks West in Charlottesville, VA for $13.3 million ($50,000 per unit) in an off-market short sale. Located just a half mile from the University of Virginia’s business and law schools, the Barracks West units were placed in receivership by Suntrust Bank in late 2011 after the previous owner defaulted on a $22 million loan. The new ownership plans to invest an additional $4.5 million in capital improvements.

Goldstar affiliate Metropolis Capital Finance sourced debt capital for the transaction. The Goldstar Group’s acquisition included approximately $15 million of senior and mezzanine debt with the balance of the capital stack funded with equity.

This acquisition marks the fifth “fractured condo” acquisition that The Goldstar Group has closed in the last three years. In one of the Washington, DC metropolitan area’s largest-ever residential note sales, Goldstar acquired a $45 million mortgage on 86 unsold units at Floridian Condominiums for $22.6 million in January of 2010, and has since sold all but three of those units. In August 2011, Goldstar paid $7 million for the remaining 65 units at Rosewood Condominiums in Gaithersburg, MD in the wake of Lehman Brothers’ bankruptcy.

Originally developed in 1969, Barracks West Condominiums comprises 34 buildings on over 19 acres. Its 364 residential units range from efficiencies to three-bedroom apartments and townhomes. The property was acquired by Cheetah Investments, LLC of Charlottesville from AIMCO in 2006 for $31.6 million ($87,000 per unit). In 2007, Cheetah began converting the community to condominium ownership, and sold 99 units at an average price of about $130,000. Ultimately, however, the real estate market downturn caused sales to slow until the ownership defaulted on its loan.

To stabilize and enhance the property, Goldstar plans to spend $4.5 million on renovations including common area improvements, exterior building and parking lot repairs, landscaping, and improvements to the community clubhouse. Select units, some of which are unoccupied and others that have been rented at below-market rates, will be upgraded with new paint, carpeting, appliances, lighting, new heating and cooling systems, water heaters, and more.

Goldstar has contracted with The Donaldson Group of Rockville, MD to manage the property and execute the renovation program.

“We have made a concerted effort to focus on distressed residential deals over the last couple of years, successfully identifying and executing a number of deals in the Washington, DC metropolitan area,” said Michael Brodsky, Goldstar CEO. “As distressed opportunities in the DC area diminish, we are looking to other markets where we can leverage our specialized knowledge and experience. Barracks West is a tremendous opportunity for us to reposition an asset and create significant value.”

Added Eric May, Goldstar Senior Vice President: “Barracks West is ideally situated in one of Charlottesville’s most sought-after locations. We will infuse significant capital into the property to upgrade units and improve the community’s overall appearance. As a result, we are confident that Barracks West will become one of the premier rental communities in Charlottesville.”

“We were able to arrange very competitive bridge debt based largely on the sponsorship, which has a successful track record acquiring and repositioning fractured condominiums,” remarked Cliff Mendelson, CEO of Metropolis Capital Finance.

About The Goldstar Group: Formed in 1995 and based in Bethesda, MD, The Goldstar Group is a privately held firm strategically focused on commercial real estate investments and services on behalf of its clients and principals. We focus on value creation through opportunistic situations within the commercial real estate industry, principally in the Mid-Atlantic region. For more information, visit https://www.thegoldstargroup.com.

About Metropolis Capital Finance: Having completed more than $5 billion in transactions, the team at Metropolis Capital Finance (MetCap) specializes in the funding of capital for owners of commercial real estate. The MetCap team’s experts in structured finance actively pursue all portions of the capital stack including senior loans, equity participations, mezzanine financing, and joint ventures. It is our mission to provide unique capital solutions for complex real estate finance transactions. For more information, visit http://www.metcapfinance.com.

 
Originally published on prweb.com

COPT sells Silver Spring property for $21.3M

Finmarc Management and the Goldstar Group have acquired 11800 Tech Road, a flex office building with nearly 250,000 square feet in Silver Spring, for $21.3 million, Citybizlist.com reports.

The building is located in the North Silver Spring/Route 29 submarket of Silver Spring. The property is 83 percent leased to tenants such as Comcast, the General Services Administration and Holy Cross Hospital.

 
Originally published on bizjournals.com

Goldstar Group buys Gaithersburg Rosewood units

Bethesda-based The Goldstar Group has acquired 65 units at Rosewood, a condominium and complex in Gaithersburg.

Goldstar bought the units from Stellar Rosewood LLC for $7.05 million. Jones Lang LaSalle Inc.represented the seller.

Rosewood, at 18318 Streamside Drive, was built in 1986 and renovated in 2005. It converted to condos in 2006 and 2007. There are 65 units still unsold in two buildings.

 
Originally published on bizjournals.com

Goldstar Group buys The Floridian at auction

Exactly a month after Bank of America filed a notice of foreclosure on U Street’s The Floridian, the Goldstar Group scooped it up in what it calls an “unconventional” transaction.

The Bethesda-based company and its recently formed financing arm, Metropolis Capital Finance, purchased the 118-unit condominium building for less than the $31.8 million on the note with the hopes of lowering unit prices and moving the remaining 86 condos off the shelf.

The long-quiet company says this purchase is the first of many residential and office projects it hopes to buy over the next year — and yes, they have the cash flow to make it happen.

For The Floridian transaction, Goldstar relied on private capital available through a number of East Coast capital partners including Marc Solomon of the Spectrum Partners.

Goldstar’s financial group, headed by former Transwestern Senior Managing Director Cliff Mendelson, couldn’t outline details of the deal because of a confidentiality agreement with Bank of America and Sovereign Bank, but said it was not an all-cash transaction, as is usually the case in such rapid sales.

“We have access to private creative capital sources that have certain needs and desires. This deal fit the bill and it has a financial structure that’s very different than what people are used to seeing with typical institutions,” Mendelson said.

The eight-story condo building with its upscale finishes, balconies and floor-to-ceiling windows stands above Florida Avenue as a symbol of everything developers hoped the U Street Corridor would be — and of pipe redevelopment dreams rocked by the financial collapse.

Lanham-based Kady Development assembled the land at 915, 917, 919 and 929 Florida Ave. NW for $6 million in 2004. It borrowed $44.8 million from LaSalle Bank to build the project and started sales in July 2005.

The Floridian delivered in 2008, but contractor liens on the property between May 2008 and January 2009 held up settlements and just 30 units sold. Despite interest from at least 50 potential buyers, the project’s lenders determined that the sales pace was not rapid enough and began foreclosure proceedings.

Bank of America acquired the note on the property when it bought LaSalle in October 2007 and has since passed it on to Sovereign Bank.

Though executed in less than 30 days, Mendelson said the Jan. 8 purchase of the note had been brewing since the summer when the bank reached out to a number of firms about its plans to sell.

Eric May, senior vice president at Goldstar had a relationship with the lender and brought the deal with him when he joined the firm from Urban Realty Advisors.

“Both banks determined that given the situation and the circumstances, it was best to sell and we really liked the property, the location, the finishes. This building was unfortunately a product of the economic times at hand. It was built at a time when the developer felt you could go high-end and get sales numbers and unfortunately it didn’t play out the way they hoped,” May said.

Where Kady tried to sell units for more than $500 per square foot, Goldstar says that for the deal it cut on the note, it can start prices in the low $400s. The Floridian includes units ranging from 500-square-foot studios to over 1,400-square-foot penthouses.

“I think the biggest thing is that we’ll change the pricing structure to make it more affordable for the area and for new prospective purchasers than it was originally financed for. That was where the prior owner faced headwinds. We are in the position now to meet the market,” said Michael Brodsky, founder of Goldstar.

Goldstar will keep the project’s current sales and marketing company, D.C.-based UrbanLand Company, on board.

 
Originally published on bizjournals.com