(Read more on the multifamily market.)
RICHMOND, VA-A newly constructed class A plus multifamily has traded hands here for $32.3 million. Located at 9201 Creek's Crossing Blvd., the 202-unit building--called Creek's Edge Apartments--was sold to an affiliate of NTS Development Co., based in Louisville, KY and Creek's Edge Investors LLC, a limited liability company. The property was developed and sold by a locally based joint venture between GrayCo, Inc. and Commonwealth Properties LLC. Cushman & Wakefield brokered the transaction.
According to Drew White, a senior director at Cushman & Wakefield, the deal was signed even before the property stabilized. Space available range from one-bedroom, one-bath to three-bedroom, three-bath apartments. Rents, according to White, are among the highest in Richmond. At closing, several days ago, occupancy tipped over 90%. "However it was such a solid asset that the buyers were confident it would be stable in a short period of time."
Creek's Edge $32.3-million sales price registers among the highest for multifamily in the Richmond market when broken down on a per unit basis, according to a broker in the market. A close comparable was the $119,000 per unit sales price for the Carriage Homes at Wyndham a few years ago, the broker adds.
White says that the multifamily pipeline in the Richmond market remains very robust with several assets about to be put on the market. "The employment picture here is very bright which is a great indicator for multifamily performance--it is even topping Washington, DC now." Yields for multifamily are also solid, with cap rates ranging from 3.5% to 6.5%, he adds.
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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.
