716 Washington Pl
Baltimore, MD 21201

Harbor Stone Advisors is pleased to present the opportunity to acquire the leasehold interest in the Stafford Apartments, a stabilized, predominantly student-occupied asset located in Historic Mount Vernon. The Stafford is the preferred facility for off-campus student housing for the Peabody Institute of the Johns Hopkins University which is a 3-minute walk from the Subject Property.
The property features (4) Studios, (73) 1 Br-1 Ba, (17) 1 Br-1 Ba, (1) unit that was converted into a leasing office, and (1) unit that was converted into a music room and fitness center. Typical unit features consist of white appliances, wood cabinets, formica countertops, and carpet/vinyl tile flooring. Property amenities include a community center, music practice room, fitness center, and laundry facilities. Prior ownership was a large, institutional owner that expertly maintained the property. Current ownership has completed a handful of capital improvement projects including a refresh of the hallways, updated the fitness center and music room, and renovation of 6 units with a scope of stainless steel appliances, white/gray wood cabinets, granite countertops, updated bathrooms, vinyl plank flooring throughout, and modern hardware/fixtures. The opportunity exists for a new owner to continue this renovation program on the remaining 88 units. Properties of similar vintage that have undergone renovations of a similar scope are achieving rents at least 10% higher on average than the Subject property.
The Stafford is being sold subject to a “Ground and Building Lease Agreement” between the Leaseholder (Seller) and the Johns Hopkins University. The agreement allows for the Leaseholder (Seller) to benefit from 100% of the property’s Net Operating Income. The building also has a tax exemption in place due to its student housing status, which offers future tax savings for a new owner. The Stafford has pre-existing debt that can be assumed. The current loan balance is $7,153,468 with an interest rate of 5.08% and loan maturity in 2026.