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Capital Markets Mid-Atlantic Multifamily Northampton APARTMENT HOMES 67 Harry S. Truman Drive | Largo, Maryland 20774 620-Unit Value-Add Opportunity Phase II: 1987 Phase I: 1977
Capital MarketsMid-Atlantic Multifamily
NorthamptonA PA RT M E N T H O M E S
67 Harry S. Truman Drive | Largo, Maryland 20774620-Unit Value-Add Opportunity
Phase II: 1987
Phase I: 1977
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NorthamptonA PA RT M E N T H O M E S
THE OPPORTUNITYJLL, as exclusive advisor, is pleased to present Northampton Apartment Homes (“Northampton” or the
“Property”), a 620-unit, garden-style rental community in Largo, Maryland. Situated at the confluence
of the Capital Beltway (I-495) and Central Avenue (Maryland Route 214) and less than one mile from the
Largo Town Center Metro Station, Northampton provides residents with immediate access to the top
employers and retail and lifestyle destinations in both Prince George’s County and Washington, DC.
The Property is well-positioned to benefit from several new developments in the area. The $543 million
University of Maryland Capital Region Medical Center, which is situated just one mile away and is
expected to generate 6,000 new jobs and $800 million in economic activity, is expected to deliver in
Spring 2021. Coinciding with that will be the delivery of Carillon, a new 1.2 million square foot, lifestyle-
oriented mixed-use development. Finally, the area will likely see an influx of price-conscious federal
agencies, nonprofits and associations, and government contractors as a result of rising rental rates in
National Landing – a development that stems from Amazon’s announced arrival.
With the ongoing economic growth in Largo, the Property has demonstrated strong performance -
averaging 3.9 percent effective rent increases over the last 60 days and 5.3 percent net rental income
growth over the past 12 months. A new owner will benefit from outstanding market rent growth while
having the opportunity to renovate 330 classic units and further enhance the 290 units that were
renovated by current ownership.
PROPERTY INFORMATION
Address 67 Harry S. Truman Drive, Largo, MD 20774
County Prince George’s County
Land Area 58.08 acres
Number of Buildings 47 residential, 1 clubhouse, and 1 fitness center
Number of Floors 3 and 4
Year BuiltPhase I: 1977Phase II: 1987
Total Units 620 (Phase I: 344, Phase II: 276)
Total Rentable SF 564,976 SF
Average Unit Size 911 SF
Average Effective Rent Per Unit $1,571
Average Effective Rent Per SF $1.72
Current Occupancy 97.1% (as of August 21, 2019)
Parking ~1,120 surface spaces (1.8 spaces per unit)
Tax Parcels 13-1518224, 13-1518232
Driving Directions
Via I-495 S: Take exit 16 (Arena Drive) and continue on Arena Drive before turning right onto Lotsford Road.
Turn right onto Largo Drive West and then right onto Harry S. Truman Drive until reaching Northampton
on the right.
Via I-495 N: Take exit 16 (Arena Drive) and continue on Arena Drive before turning right onto Lotsford
Road. Turn right onto Largo Drive West and then right onto Harry S. Truman Drive until reaching
Northampton on the right.
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NorthamptonA PA RT M E N T H O M E S
LARGO PLAZA
LARGO TOWN CENTER
Largo Medical Center
WOODMOORE TOWNE CENTRE
495
202
495
214
LARGO TOWN CENTERMETRO STATION
Carillon Lifestyle Center
University of Maryland Capital Region Medical Center
• Spring 2021 projected delivery date
• Will generate ~$800M in economic activity
• Will support > 6,000 new jobs
• Spring 2021 projected delivery date
• 1.2M SF mixed-use development
• Medical, retail, and residential space
Brand new townhomes marketing north of $400,000
Capital Court Townhomes
Approximately 5,000 daily riders
NorthamptonA PA RT M E N T H O M E S
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NorthamptonA PA RT M E N T H O M E S
IN V ESTMENT DRIV ERS
SIGNIFICANT VALUE-ADD POTENTIALCurrent ownership implemented a modest value-add renovation
program at Northampton that targeted 290 apartment homes
of varying unit types. In addition to upgrading the baths in each,
current ownership also applied two-tone paint in the living rooms and
installed new black appliances (including microwaves), contemporary
cabinetry, Formica countertops, backsplashes, new vinyl flooring, and
updated lighting in the kitchens. A buyer will have the opportunity
to continue repositioning the asset in the market by renovating the
remaining 330 classic units to achieve tremendous returns. Moreover,
a buyer could further enhance the renovated units with backsplashes
(only 36 of the 290 renovated units currently feature them) to achieve
additional premiums.
SUBSTANTIAL CLASS A RENT SPREADSThe monthly rent differential between renovated apartment
homes at the Property and neighboring Class A product is
significant, as renovated units at Northampton are marketing
for approximately $350 less on average. A unit type breakdown
reveals that the rent spread ranges from $160 to $270 for one-
and two-bedroom units, but it is most pronounced among three-
bedroom units, as renovated three-bedroom apartment homes
at Northampton are marketing for roughly $630 less than those
at the newer multifamily assets. Not only do these immense
spreads illustrate the excellent value of the Property’s apartment
homes when compared to those offered at newer product in the
submarket, but they also indicate that new ownership would be
successful in aggressively growing rents, should a comprehensive
value-add renovation program be pursued.
$1,503
$1,884
$2,282
$1,664
$2,152
$2,911
$0
$1,000
$2,000
$3,000
One Bedroom Two Bedroom Three Bedroom
Ave
rage
Mon
thly
Ren
t
Rent Spread Comparison
Northampton Renovated Units Class A Product
CLASSIC (TRADITIONAL / PHASE I) – 165 UNITS
CLASSIC (CONTEMPORARY / PHASE II) – 165 UNITS
TYPICAL RENOVATION – 290 UNITS
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NorthamptonA PA RT M E N T H O M E S
DEMONSTRATED RENT GROWTH
INSTITUTIONALLY MAINTAINED COMMUNITYCurrent ownership has spent more than $6 million in capital
expenditures at Northampton over its hold period. Notable
improvements include:
• Clubhouse and leasing office renovation
• New fitness center and outdoor fitness stations
• New playground and dog park
• Pool renovation with new outdoor kitchen and pergola
• New pool furniture with cabanas
• Roof replacement
• Hallway upgrades
• Window replacements (Phase I)
LIMITED NEW SUPPLYUnlike other submarkets of the Washington, DC region, the Largo
area has maintained a relatively limited multifamily supply pipeline
despite several exciting new projects – such as the University of
Maryland Capital Region Medical Center and Carillon Lifestyle Center
– that will ultimately stimulate local economic activity. Only one new
apartment community, which will consist of roughly 350 units, is
expected to deliver within the next 36 months and it will not compete
with Northampton, as it will cater to a more discerning resident base.
New ownership has the opportunity to capitalize on the strong rent
growth trends at Northampton. Coupled with the rising home prices
and economic activity in the submarket, rents at the Property are
excepted to continue to increase.
Over the last 60 days or 49 past leases, the average effective rent
increased 3.9% over the prior lease.
$1,529
$1,588
$1,490
$1,500
$1,510
$1,520
$1,530
$1,540
$1,550
$1,560
$1,570
$1,580
$1,590
$1,600
Avg. Prior Effective Rent Avg. Current Effective Rent
Effective Rent Growth - Last 60 Days
$1,405
$1,479
$1,360
$1,380
$1,400
$1,420
$1,440
$1,460
$1,480
$1,500
Aug 2018 Jul 2019
Net
Ren
tal I
ncom
e (P
er U
nit)
Net Rental Income Growth
Effe
ctiv
e R
ent
As a reflection of heightened demand in the submarket, net rental
income at the Property has been consistently increasing, averaging a
6.3% increase between August 2017 and July 2018 and a 5.3% increase
between August 2018 and July 2019.
$1,529
$1,588
$1,490
$1,500
$1,510
$1,520
$1,530
$1,540
$1,550
$1,560
$1,570
$1,580
$1,590
$1,600
Avg. Prior Effective Rent Avg. Current Effective Rent
Effective Rent Growth - Last 60 Days
$1,405
$1,479
$1,360
$1,380
$1,400
$1,420
$1,440
$1,460
$1,480
$1,500
Aug 2018 Jul 2019
Net
Ren
tal I
ncom
e (P
er U
nit)
Net Rental Income Growth
Effe
ctiv
e R
ent
3.9%Growth
5.3%Growth
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NorthamptonA PA RT M E N T H O M E S
THE AMAZON EFFECTAfter more than a decade of stagnant office rental rates in National
Landing, Amazon’s announced arrival has increased rents by 25
percent in a matter of months, with further increases expected. As
a result, for the first time, National Landing’s current tenant mix of
federal agencies, nonprofits and associations, and government
contractors will find it increasingly challenging to remain. Today,
these three price-conscious sectors represent 96 percent of National
Landing’s occupancy, with a significant pipeline of expirations
ahead. From 2021 to 2025, 3.9 million square feet of leases will expire
across these sectors, and with rents continuing to climb, suburban
submarkets outside of National Landing but still within and near
the Beltway will see a significant uptick in demand, not just from
employers, but also from their employees, many of whom will face
challenges as residential rents in National Landing climb.
Potential relocation options for National Landing employers include
not only close-in suburban sites in both Arlington and Alexandria,
but locations such as Landover, Suitland, Hyattsville, and Largo
in Prince George’s County as well. All of these submarkets feature
high direct vacancy rates and lower average asking rents when
compared to the National Landing submarket and will thus be
viewed favorably by price-conscious tenants. Should there be an
influx of new employers to these submarkets, Northampton would
benefit greatly as it is centrally located between each of them.
25%National Landing Office Rents have Increased by 25%
3.9MM SFOffice Leases
Expiring in National Landing
PERFECTLY POSITIONED
Prince George’s County Perfectly
Positioned for Relocating Tenants
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NorthamptonA PA RT M E N T H O M E S
FEDERAL GOVERNMENT
United States Department of Defense
United States Environmental Protection Agency
United States Transportation Security Administration
United States Department of Labor
United States Customs & Border Protection
United States Army
United States Drug Enforcement Agency
United States Air Force
United States Agency for International Development
United States Smithsonian Institution
GOVERNMENT CONTRACTOR
Lockheed Martin
RAND Corporation
Raytheon Company
Management Systems International
Bell Helicopter
Decisive Analytics Corporation
Gibbs & Cox
General Dynamics Information Technology, Inc.
Aerospace Corporation
Advanced Concepts & Technologies
NONPROFIT/ASSOCIATION
Winrock International
International Justice Mission
American Systems Corporation
Communities in Schools
Year Up
Counterpart International Inc
American Electronics Association
Industry Data Exchange Association
American Association for Homecare
American Foundation for the Blind
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Airport Access Road
National Landing
17.2%Direct Vacancy
$43.97 FSAvg. Asking Rent
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NorthamptonA PA RT M E N T H O M E S
UNIVERSITY OF MARYLAND CAPITAL REGION MEDICAL CENTER In November 2017, County and State officials broke ground on the new
University of Maryland Capital Region Medical Center, a state-of-the-art
medical complex that is projected to deliver in March 2021. The 600,000
square foot complex, which is being constructed adjacent to the Largo
Town Center Metro Station and just one mile from Northampton, will feature
an 11-level main patient care tower, two rooftop helipads, 205 private
inpatient rooms, a 20-bed short stay treatment area, a 45-bay emergency
department, eight operating rooms, and a 15-bed specialty pediatric
hospital. At completion, the $543 million project will generate nearly $800
million in economic activity and support more than 6,000 jobs according to
The Battelle Technology Partnership Practice.
MARCH 2021Delivery Date
$800MMFuture Economic
Activity
6,000New Jobs
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NorthamptonA PA RT M E N T H O M E S
CARILLON LIFESTYLE CENTER Coinciding with the Spring 2021 opening of the University of
Maryland Capital Region Medical Center will be the delivery of
Carillon, a new 1.2 million square foot, lifestyle-oriented mixed-use
development. The first phase of the project, which will be built on
the site of the former Boulevard at Capital Centre shopping center,
will feature a medical office building, two retail buildings, a 350-unit
residential complex, and a one-acre public park. Also included in
Carillon’s plans are an AMC IMAX movie theater and a standalone
restaurant building facing the park. Not only will Carillon stimulate
the local economy through new jobs and increased investment,
but it will also afford residents of Northampton access to a host of
exciting new retail and lifestyle amenities.
1.2 MM SFMixed-Use
Development
NEW RETAILExciting New
Retail and Lifestyle Amenities
6,000New jobs and
Increased Investment
FOR FINANCING:
Although information has been obtained from sources deemed reliable, Owner, Jones Lang LaSalle, and/or their representatives, brokers, or agents make no guarantees as to the accuracy of the information contained herein, and offer Northampton Apartment Homes without express or implied warranties of any kind. Northampton Apartment Homes may be withdrawn without notice. If the recipient of this information has signed a confidentiality agreement regarding this matter, this information is subject to the terms of that agreement. ©2019. Jones Lang LaSalle. All rights reserved.
Anthony HebenstreitVice President
+1 703 891 8416 [email protected]
Shawn McDonald Managing Director
+1 703 891 8425 [email protected]
Robert GarrishManaging Director
+1 202 719 [email protected]
Christine EspenshadeManaging Director
+1 202 719 [email protected]
Greg BurySenior Analyst
+1 202 719 [email protected]
Catherine ChengSenior Analyst
+1 202 719 [email protected]
