(Read more on the multifamily market.)
RICHMOND, VA-A multifamily portfolio has come on the block here that is valued at $85 million or more. The portfolio consists of two multifamily developments in Chesterfield County called the Belvedere and River Forest--one with 240 units, the other 296 units-–plus an additional six-acre parcel of zoned land that is contiguous to one of properties. This parcel has an allowable density of up to 60 units.
According to Drew White, lead broker with Cushman & Wakefield Apartment Brokerage Services, which is marketing the class A properties for a private local developer, the Bogese Co., the occupancy is in the high 90s.
"The portfolio provides a strong cash flow in a location that will appeal to institutional investors looking to place money in Richmond," he tells GlobeSt.com. Indeed multifamily portfolio sales are a relatively rare event in the Richmond market, according to White.
The relatively scarce supply of such portfolios could well account for the interest institutional investors have paid thus far to the portfolio, which went to market this week. "Investors can put a lot of capital to work in a healthy market with one move," White says, adding that some of the inquiries he has received in the short time the portfolio has been marketed have come from institutional investors that do not have a presence in Richmond.
River Forest is close to Ft. Lee, which is expected to grow by 11,390 new residents--including 5,970 new military personnel--between 2007 and 2013 due to the Defense Base Realignment and Closure Act, or BRAC.
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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.
