Greysteel Arranges GP Interest Sale of a 113-Unit Affordable Housing Property In Frederick, MD

Greysteel, a national commercial real estate investment services firm, has arranged the saleof the controlling General Partner interest in Overlook at Avalon, a 113-unit Affordable Housing propertyinFrederick, MD. Senior Managing Director Henry Mathies and Managing Director Fletcher Hultman of Greysteel’s National Affordable Housing team negotiated the transaction on behalf of the Seller, KB companies. The final total sale price was $24,022,063 whichincludedthe assumption of in-place HUD financing ofapproximately $18,800,000.

‘’This transaction was the culmination of years-long advice our team provided to the seller, including guidance through ROFR issues, a broken condominium structure, as well as pursuing an FHA 223 (a)(7) refinance during our marketing of the asset,” said Fletcher Hultman, Greysteel’s Mid-Atlantic Team Lead for the Affordable Housing Group.

Builtin 2017, Overlook at Avalon is located just north of Frederick’s Golden Mile. It is a 113-unit townhouse rental community that was Placed-in-Service in 2017 under the Section 42 Low-Income Housing Tax Credit (LIHTC) program.The 114th unit has been structured as the property’s leasing office and maintenance HQ. The Property’s LIHTC restrictions are that 6 units are income-restricted for thosewho earn 50% of the Area Median Income (AMI), or less, and the remaining 107 units at the 60% AMI level, or below.The property is currently delivering tax credits to theLIHTC investor.

Henry Mathies, National Leader of Greysteel’s Affordable Housing Team, commented “Overlook at Avalon was received extremely well by the market. In pursuing its refinance during our marketing period, the seller locked their interest rate just ahead of when the capital markets became very volatile, facilitating our ability to market a well-performing asset, with very attractive permanent financing in place, during a time of growing macroeconomic uncertainty.’’

The buyer is an entity controlled by the RLM Preservation Fund, a partnership between Rail Field Realty Partners and L+M Development Partners, with an equity commitment provided by Citibank. The purpose of the fund is to acquire andpreserve the workforce and Affordable housing.


Greysteel is a leading commercial real estate and capital markets services firm with 12 offices located in New York, NY; Los Angeles, CA; Dallas, TX; Washington, D.C.; Philadelphia, PA; Bentonville, AR; Baltimore, MD; Charlotte, NC; Miami, FL; Austin, TX; New Orleans, LA and Newport Beach, CA. Greysteel serves and advises private and institutional real estate investors and developers in the marketing, sale, and financing of private capital, middle-market, and institutional real estate assets.