AION & Kushner Acquire Middle River Portfolio

AION Partners and Kushner Cos., both New York-based companies have acquired a three-building apartment portfolio in Middle River for $37.9 million.

Kushner partnered with AION Partners to acquire the three buildings developed in 1974 by the Posner family. The assets were some of the last Baltimore-area buildings owned by the company, said Transwestern broker Dean Sigmon, who represented the seller on the deal.

The buildings were about 92 percent occupied at the time of sale, according to CoStar Group Inc. They are at 305 Retford Way, 1558 Alconbury Road and 50 Hebron Drive.

Well known in the New York area, Kushner was part of one of the biggest multifamily transactions in Maryland two years ago. The company has been active on the East Coast, last week acquiring four New Jersey apartment complexes for $56.5 million, according to the Bergen County Record.

Kushner CEO Jared Kushner is the son-in-law of Donald Trump and publisher of the New York Observer. Last year, the New York real estate news website The Real Deal called Kushner“one of the most active buyers of multifamily properties nationally” after the company snatched up 11,000 units in New York, New Jersey and the Baltimore area.

Sigmon said he initially thought the buildings would sell separately in transactions that would have exceeded $40 million. But after receiving eight offers on the portfolio, it became clear that selling the buildings together was preferable because it made for an easier transaction.

Although the Posner Group had invested about $1 million into improving the exteriors of the buildings over the last several years, none of the buildings have had any major interior renovations, Sigmon said. That was what attracted Kushner to the deal, Sigmon said, because it offered the opportunity to add value to the buildings.

“There’s definitely an opportunity to not only improve the common areas, but also the kitchens and baths” inside the units, Sigmon said. He added that because Kushner operates other apartment buildings in the area, “there were some economies of scale and they thought they could manage them a little more efficiently.”