Correction: This article has been updated to correct the Oxygen Buyer at Centerpointe. An earlier version named another company that shares the same office address. CBRE represented the seller and not the buyer as indicated above.
Three apartment deals totaling over $ 115 million closed in 2017 with a bang in Chesterfield County.
The most expensive of these was Oxygen at Centerpointe, a 255-unit complex along Charter Colony Parkway in Midlothian that sold on November 22 for $ 45.83 million.
The buyer was Atlanta-based Preferred Apartment Communities, a publicly traded real estate investment trust that was making its first purchase in the Richmond Market.
PAC purchased the property from Centerpointe Associates LC, an entity related to Robinson Development Group, the Norfolk-based company that developed Oxygen in a joint venture with Hampton Roads-based real estate firm Drucker & Falk.
The seller was represented in the transaction by CBRE’s multi-family team at its offices in Richmond, Norfolk and Washington, DC. CBRE | Charles Wentworth and Peyton Cox of Richmond closed the deal locally.
Wentworth said the 18-acre property has received strong responses from investors. He said the purchase price represents the highest price per unit for a suburban garden-style apartment development in the Richmond market to date.
Built in 2014, Oxygen is one of the new apartment developments in Chesterfield, where multi-family growth has slowed in recent years due to the county’s supply policy, which it recently revised.
âChesterfield County has specifically seen a limited number of new development opportunities over the past 10 years or so due to the supply situation,â Wentworth said. â(The county has) very strong demand, very strong fundamentals and apartment demographics.
âAll of these things have attracted (PAC) both to the market and to the property. This allows them to gain a solid foothold in the market.
Oxygen opened in early 2016, about two and a half years after Robinson announced plans for the $ 30 million project. KBS built the complex, which was designed by Cox, Kliewer & Co. of Virginia Beach. The property is part of the 700-acre CenterPointe mixed-use development of Riverstone Properties, the real estate arm of Bill Goodwin’s Riverstone Group.
Totaling 347,500 square feet of finished space, Oxygen includes one, two and three bedroom units ranging from 860 to 1,500 square feet. The resort includes a saltwater swimming pool with a clubhouse, business and fitness centers, and a dog park.
The latest Chesterfield County valuation valued the property at $ 29.15 million.
Wentworth said PAC is planning minor improvements to the property. He refused to elaborate.
The $ 42 million purchase of Hunter’s Chase Apartments, a 13-building, 320-unit complex on 25 acres on Hull Street Road and Commonwealth Center Parkway, across from Hull Street and Brandermill, was almost as expensive.
The buyer was Hamilton Zanze, a San Francisco-based multi-family investment firm that closed the property on December 15. It acquired ownership of Aimco, a Denver-based REIT. County property records list the seller as Brandermill-Oxford LP.
Built in 1986, Hunter’s Chase consists of one, two and three bedroom units ranging from 650 to 1,100 square feet. Monthly rents range from $ 900 to $ 1,360 and the occupancy rate was 98% at the time of the transaction. The property totals just over 260,000 square feet of rental space in 13 three-story buildings.
Denver-based Mission Rock Residential manages the property, which includes a pool, clubhouse, and fitness center. The county’s latest valuation valued the property at $ 24.27 million.
Hamilton Zanze plans to invest $ 6.08 million in capital improvements to the property, including interior renovations to all units, improvements to the clubhouse, pool and fitness center, and the conversion of the property. ‘a tennis court in a multisport field.
Colonial Ridge and The Glen at Colonial Heights, two neighboring resorts along the Jefferson Davis Freeway north of Colonial Heights, which sold together on December 26 for $ 28.2 million, round out the trio of offers from apartments.
The buyer was Preservation Partners, a California-based company that works with the Colonial Heights Economic Development Authority to acquire and renovate 192 Colonial Ridge homes and 100 Glen homes in Colonial Heights.
Preservation Partners is using tax-exempt tax bonds issued by the EDA to fund work on the two properties, both of which are income-based housing, according to a Times-Dispatch report in October.
Note: This story has been updated to include information from Hamilton Zanze received after the deadline. A subsequent update was made to clarify the purchase of Colonial Ridge by Preservation Partners, which included The Glen at Colonial Heights property.