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Seniors Apartments - Independent

Chestnut Oaks

1800 Palmer Rd, Fort Washington, MD 20744

Listing Price: Request For Offer

Number of Beds
108
Gross SF
97,719
Occupancy
98.2%
Lot Size
11.00 acres
Year Built
2007

Investment Overview

As the exclusive listing broker, the Zupancic Group of Marcus & Millichap is pleased to present the opportunity to acquire 108 condominium units in the Chestnut Oaks community. Built in 2007, Chestnut Oaks is a 149 unit market-rate seniors housing community (55+) in the Fort Washington neighborhood of Prince George’s County, Maryland. The developer completed the project during the financial crisis of 2008, which impacted condo out sale efforts. In response, the developer strategically retained 105 of the 149 condo units, which allowed them to operate the property as a 55+ age-restricted rental community. In recent years, the developer re-acquired three units under a separate entity, LOML LLC, bringing their total number of units owned to 108. Chestnut Oaks has significant rent growth potential and is well-positioned to capitalize on short and long-term demographic trends. Chestnut Oaks is a serene, suburban, tree-lined community on approximately 22 acres of land just 0.7 miles east of Indian Head Highway and five miles south of Washington, DC. The asset has a total of 149 units, 108 of which we are marketing for sale. Of the 108 available units, 10 are one-bedroom units, and 98 are two-bedroom units with an average unit size of 993 square feet. Chestnut Oaks possesses numerous community amenities, including a billiards room, a 165-space parking lot with valet service, three elevators, a movie theater, a gym, a beauty salon, a library, a resident lounge with a full kitchen and dining area, outdoor gazebo and garden with grills, and many additional smaller common area spaces. Additionally, each condo unit is in excellent condition with all electric kitchens, a dishwasher, garbage disposal, an individual washer & dryer, and individually controlled air conditioning and heating. Chestnut Oaks provides a significant value-add opportunity to investors both in the short and long term. The average in-place rent for a one-bedroom unit is $1,480, and the average rent for a two-bedroom unit is $1,627. Internal rent comparisons based on floor plans show that more than 50 units in the building are $100 dollars or more below the highest monthly rent achieved for the same floor plan. Bringing rents in these underperforming units up to the highest level achieved in the building would yield a rental upside of $106,800 annually. When comparing the asset to other market-rate senior communities, there is even more rent growth potential. Market rents for other market-rate senior communities average $1,595 for one-bedroom units and $1,983 for two-bedroom units, or an upside of 7.7% and 21.9% for one and two bedrooms, respectively. With significant demographic shifts coming over the horizon, the population of eligible seniors is expected to roughly double over the next two decades, driving further demand for seniors housing. Additionally, condominium units have resold for as high as $236,000 within the last two years, providing flexibility for a buyer to sell off condo units on an individual basis at a future date.

Investment Highlights

  • 108 Condominium Units in the Chestnut Oaks Community, a Market-Rate Senior Housing Community Built in 2007.
  • Significant Rent Growth Potential.
  • Located in Fort Washington, Maryland, in Close Proximity to National Harbor and Washington, DC.
  • Proximity to Major Thoroughfares and Local Hospitals.

Exclusively Listed By

Seniors Apartments - Independent

Chestnut Oaks

Listing Price: Request For Offer

Number of Beds
108
Gross SF
97,719
Occupancy
98.2%
Lot Size
11.00 acres
Year Built
2007

Investment Highlights

  • 108 Condominium Units in the Chestnut Oaks Community, a Market-Rate Senior Housing Community Built in 2007.
  • Significant Rent Growth Potential.
  • Located in Fort Washington, Maryland, in Close Proximity to National Harbor and Washington, DC.
  • Proximity to Major Thoroughfares and Local Hospitals.

Investment Overview

As the exclusive listing broker, the Zupancic Group of Marcus & Millichap is pleased to present the opportunity to acquire 108 condominium units in the Chestnut Oaks community. Built in 2007, Chestnut Oaks is a 149 unit market-rate seniors housing community (55+) in the Fort Washington neighborhood of Prince George’s County, Maryland. The developer completed the project during the financial crisis of 2008, which impacted condo out sale efforts. In response, the developer strategically retained 105 of the 149 condo units, which allowed them to operate the property as a 55+ age-restricted rental community. In recent years, the developer re-acquired three units under a separate entity, LOML LLC, bringing their total number of units owned to 108. Chestnut Oaks has significant rent growth potential and is well-positioned to capitalize on short and long-term demographic trends. Chestnut Oaks is a serene, suburban, tree-lined community on approximately 22 acres of land just 0.7 miles east of Indian Head Highway and five miles south of Washington, DC. The asset has a total of 149 units, 108 of which we are marketing for sale. Of the 108 available units, 10 are one-bedroom units, and 98 are two-bedroom units with an average unit size of 993 square feet. Chestnut Oaks possesses numerous community amenities, including a billiards room, a 165-space parking lot with valet service, three elevators, a movie theater, a gym, a beauty salon, a library, a resident lounge with a full kitchen and dining area, outdoor gazebo and garden with grills, and many additional smaller common area spaces. Additionally, each condo unit is in excellent condition with all electric kitchens, a dishwasher, garbage disposal, an individual washer & dryer, and individually controlled air conditioning and heating. Chestnut Oaks provides a significant value-add opportunity to investors both in the short and long term. The average in-place rent for a one-bedroom unit is $1,480, and the average rent for a two-bedroom unit is $1,627. Internal rent comparisons based on floor plans show that more than 50 units in the building are $100 dollars or more below the highest monthly rent achieved for the same floor plan. Bringing rents in these underperforming units up to the highest level achieved in the building would yield a rental upside of $106,800 annually. When comparing the asset to other market-rate senior communities, there is even more rent growth potential. Market rents for other market-rate senior communities average $1,595 for one-bedroom units and $1,983 for two-bedroom units, or an upside of 7.7% and 21.9% for one and two bedrooms, respectively. With significant demographic shifts coming over the horizon, the population of eligible seniors is expected to roughly double over the next two decades, driving further demand for seniors housing. Additionally, condominium units have resold for as high as $236,000 within the last two years, providing flexibility for a buyer to sell off condo units on an individual basis at a future date.

Exclusively Listed By

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