CAPREIT Buys Va. Affordable Housing Portfolio for $69M

Overlook at Brook Run

ROCKVILLE, MD—Locally-based CAPREIT has acquired a five-asset portfolio of 978 affordable apartment homes. The portfolio is located throughout the east-central portion of the Commonwealth of Virginia, around the Richmond area.  CAPREIT did not report a purchase price but a report http://www.multifamilyexecutive.com/business-finance/exclusive-capreit-buys-1-000-unit-lihtc-portfolio-in-virginia_o in Multifamily Executive said the portfolio traded for $68.5 million. Two of the properties are transit-oriented communities in the Henrico portion of Richmond: They are the Overlook at Brook Run, which has 282 apartment homes and The Glenns at Miller Lane, which features 144 units. A third, Creekpointe, features 214 apartment homes and is located in the Midlothian submarket. The fourth asset, Lieutenants Run, consists of 168 homes and is located in Petersburg. The 170-home Longhill Grove is seven-miles from Colonial Williamsburg. The apartments are all affordable housing, a designation that CAPREIT will keep. It is planning some exterior and interior updates, but there are no large-scale renovations in the works. 14,000 and Counting CAPREIT currently owns and operates nearly 14,000 apartment residences in the US, accumulating a handful of new assets each year. In 2015, it acquired another property in Virginia, for example — The Courts at Historic Manassas, a 139-unit apartment community in the storied neighborhood. This year it has closed a few deals including the interesting acquisition of Aberdeen Apartments and Alvadora Apartments. Based in Lawrence, KS, CAPREIT believes they will do well as non-student housing properties in a university town. “We believe there is a niche to be filled by non-student housing properties in university towns where demand is strong, rents consistently grow and downside is limited due to the stability and growth of a major university,” said Ernie Heymann, CIO for CAPREIT at the time. It also acquired Waverley Place, a 300-unit apartment community in Naples, FL, earlier this year. Now, it has invested in the affordable asset class with its latest deal. “The apartment industry in Virginia, like many in the nation, is booming, resulting in the renovation of many apartment communities into Class A assets,” said SVP Rich Band in a prepared statement. “But middle-class families, who can’t afford luxury rents, still need a reputable home that won’t price them out of the city.”