Caroline Drive

Caroline Drive Apartments adds 52 well-located units to our Maryland portfolio through an off-market acquisition with significant embedded value. Built in 1966 and held by the same family since construction, the asset had been operated with minimal rent growth, leaving in-place rents approximately 17% below market at acquisition. With occupancy near 98% and limited exposure to institutional management practices, the property represented a prime opportunity to implement operational efficiencies and value-add upgrades.

Acquired at $119K/unit—roughly 60% of estimated replacement cost—Caroline Drive offers immediate upside through mark-to-market leasing, ancillary income opportunities, and a rolling renovation program targeting kitchens, baths, and general finishes. The business plan includes implementing rent optimization software, billing back utilities, monetizing storage units, and enhancing amenities to elevate property performance. The strategy is expected to drive a stabilized yield of over 7.7% within 24 months and deliver strong returns through both interim cash flow and long-term value creation.