Rose Valley Capital is under contract and raising approximately $22.5MM in equity to acquire Crossings at White Marsh, a 396-unit apartment community in Perry Hall, Maryland. The investment is underwritten to deliver a 17.8% levered IRR and 2.6x equity multiple and an average cash on cash return of 9.8%, over a 7-year hold period, with immediate cash flow from a 6.5% going-in cap rate.
What makes this compelling:
- Supply-constrained market fundamentals. White Marsh has seen zero new multifamily deliveries since 2023, with nothing in the 36-month pipeline. Current in-place rents of $1,569/month sit $414 below comparable properties, while homeownership costs in the immediate area are nearly double our rental rates. The supply-demand dynamics are strongly in our favor.
- Validated value-add opportunity. The previous ownership successfully executed multiple renovation tiers, demonstrating clear rent premiums of $150/month for full renovations. With 275 units (70% of the property) remaining unimproved, we have a well-defined path to NOI growth. Our underwriting assumes conservative $10k/unit renovation costs and $100/month weighted average premiums.
- Immediate downside protection. The property is 94% occupied and cash flowing from day one, with favorable Freddie Mac financing at 5.44% (2 years interest-only, 30-year amortization). We're acquiring a stabilized asset with embedded upside, not a turnaround.
- Strong location and demographics. The property sits directly across from White Marsh Mall and The Avenue retail corridor, in a designated Baltimore County growth area with $128k+ average household incomes and 50,000+ employed civilians within a 3-mile radius.
As the local operator with 4,000+ units across the Mid-Atlantic, we have the platform and market expertise to execute this business plan efficiently.
Please reach out to ir@rosevalleycapital.com to connect with the team.
