Aldon, an owner, manager, and developer of multifamily housing based in Bethesda, Maryland, is branching out of its home market.
Founded in 1947 by Alvin and Donald Brown, the firm had been focused on building apartments near government centers in its backyard. Passed down to the second and third generations of the family, Aldon grew its portfolio to about 1,600 apartment homes primarily in Bethesda and Washington, D.C.
CEO Todd Bowen came on board in 2018 with a goal of becoming a more diverse owner, manager, and developer. As part of taking the company in a new direction, the firm is working on redevelopment plans and adding density to its existing properties in its home market and expanding its geographic footprint to high-growth markets benefiting from the migration trends from gateway cities.
“The inflection point for the company was the older aging assets,” says Bowen, adding that the time was right to reinvest the company’s money to grow the business even further. “Multifamily housing is a great place to be invested, and we’re undersupplied so the demand is great.”
As part of the diversification strategy, Aldon has acquired its first four multifamily communities since late July, investing nearly $300 million and adding more than 1,100 units to its portfolio.
“Over the last 90 days, we have seamlessly closed on four transactions,” says Bowen. “This endeavor is a huge accomplishment for our company and a testament to the teamwork, vision, and hard work of our entire team.”
Aldon’s most recent acquisition in September is the 214-unit Millpond Apartments in American Fork, Utah, 30 miles south of Salt Lake City and an emerging submarket known as Silicon Slopes for its influx of tech companies.
The development was completed over the summer and offers one-, two-, and three bedroom floor plans in 12 three-story buildings on a 7-acre site. Amenities include a clubhouse with a lounge, billiards, and foosball; a 24-hour state-of-the-art fitness center; and a resort-style swimming pool, a hot tub, and seating with fire pits.
“This acquisition represents a major milestone in our company’s expansion into the West,” says Bowen. “The Salt Lake City-Provo-Orem area continues to rank high as one of the strongest submarkets in the country with job and wage growth that far exceeds the national median—key indicators that make for attractive investment opportunities.”
The prior acquisitions include Aldon at Keys Crossing in Greenville, South Carolina, a 441-unit stabilized community completed in 2020; The Piedmont in Raleigh, North Carolina, a 382-unit community; and Infinity at the Rim in San Antonio, a luxury 310-unit resort-style apartment community.
Bowen says the company is actively looking for opportunities to deploy more capital. “We are looking to align the capital with the right opportunity without overpaying or being overly aggressive,” he adds. “Multifamily housing is a need that we have in this country, and I think we’ll continue to be very bullish on our industry.”
