1311 North Calvert Street Apartments

1311 North Calvert Street was purchased with a mix of 4 - one bedroom/one bath and 1 - two bedroom/one bath units, it was strategically located in Mid-Town Baltimore City. Just north of the popular Mount Vernon residential neighborhood, three blocks east of the University of Baltimore's law and business schools, eight blocks east of the Maryland Institute College of Art (MICA) and one block south of U.S. 83 and Amtrak's Pennsylvania Railway Station, the asset had potential to generate solid rental demand.

 

When purchased, rents where below market and past ownership had not addressed basic, needed improvements. Archway Capital remediated maintenance issues such as a leaking roof, dated common area floors, malfunctioning electrical systems, outdated plumbing, paint, lighting and necessary apartment repairs. Further, the rear outdoor space was not being utilized as a rent generator. After repairs, rents where brought to market (18% increase) and the rear area was leased as two parking spaces. In 5 months the building was transformed into a cash generating and professionally managed asset.

​

Over three years, Archway enjoyed a steady cash return on its equity. With the addition of new apartment supply in the immediate market, Archway acknowledged that cash flow had been maximized, further indicated by flattening rents. In the interest of moving capital to other investment opportunities, Archway Capital marketed and sold 1311 North Calvert Street to a local investor. 

​​

Units: 5

Asset Type: Multifamily

Hold Period: 3 years

Ave. Annual Cash on Equity Return: 24%

Equity Multiple: 2.91x

Total Return/Year: 64%

IRR: 48%

​

Role: Archway Financed and Managed.

​​