(Read more on the multifamily market.)
ARLINGTON, VA-Bonaventure Realty Group, a local investor, has teamed up with an institutional private equity firm to invest $200 million in multifamily transactions in the Greater DC area as well as certain markets along the Eastern Seaboard. The $200 million--which represents planned total acquisition costs including debt--will be used to acquire properties that are value add opportunities, managing director Todd Harrison tells GlobeSt.com.
The company already has some deals pending its pipeline, he adds--about $30 million worth of transactions in the DC area and Northern Virginia. These markets have traditionally been Bonaventure's main playing field. However the firm is gradually moving outward in search of more opportunities. North Carolina and South Carolina, for example, are two other states it is going to consider.
Harrison says the market remains very competitive, despite the slowdown among condo converters. "We are finding people are being more aggressive with terms--deposit size, length of study period, etc. Everything has to be completed as fast as possible."
One multifamily transaction the company just completed--which is not part of the $200-million capital pool--was a $16.5-million trade in Woodbridge. Bonaventure purchased the 209-unit, garden-style property as part of section 1031 like-kind exchange. The deal terms included an aggressive 20-day inspection period. Harrison says that Bonaventure closed the transaction ahead of schedule.
The firm acquired the property from a local investor. Built in 1972 and with a 90% occupancy rate, Bonaventure is planning an extensive renovation of the property. CB Richard Ellis represented the seller in the transaction.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
