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VIRGINIA BEACH-St. Croix Apartments has joined Bonaventure Realty Group's portfolio in a $12.05-million deal with SL Nusbaum Realty Co. The 148-unit acquisition brings the Arlington-based company's total units owned or managed in the Tidewater market to approximately 1,250 in the past year.
Built in 1988, 80% of the multifamily property's units are two bedrooms; 20% are one bedrooms. The average rent is $877 per month, Brian Gill, vice president of acquisitions at Bonaventure, tells GlobeSt.com. The property is 99% occupied.
"This was a great opportunity to buy a good quality asset at below replacement cost in a solid market with favorable rent growth and population demographics," Gill explains. "We also have an opportunity to add value to the property through additional development of new units and new amenities."
Bonaventure purchased St. Croix Apartments with equity from private investors and the assumption of SL Nusbaum's existing loan from the Virginia Housing Development Authority. The new owner will continue to operate the property as affordable rental apartments in accordance with VDHA affordable housing program requirements, according to Bonaventure.
According to date from Real Capital Analytics, the deal gives Bonaventure the title of largest acquirer of apartments in the Tidewater market in the past 12 months. Other Bonaventure acquisitions in the area include the 202-unit Gates of West Bay Apartments in Norfolk, the 368-unit Ivystone Apartments and the 172-unit Oak Lake Apartments, both in Chesapeake.
Bonaventure paid $81,419 per unit for St. Croix Apartments. In other acquisitions of comparable class and vintagein the area, the company paid $91,33 per unit for Ivystone and Oak Lake, and Triple Net Properties paid $100,000 per unit for Arbor Trace, also in Virginia Beach, Gill tells GlobeSt.com.
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