Aurelie Capital Spends $20M in Richmond
Millspring Commons, a 159-unit community in Virginia, is the new private equity firm’s first acquisition. The company plans to add value by finishing a renovation program started by the previous owner.
By Tudor Scolca
Millspring Commons, at 9318 Tarheel Terrace
Aurelie Capital has acquired Millspring Commons, a 159-unit apartment community in Richmond. This is the first investment made by the recently-formed private equity firm. Robbins Electra sold the asset for $20.6 million, and the transaction was financed by a $16 million Fannie Mae loan.
Located at 9318 Tarheel Terrace, Millspring Commons comprises 18 one-bedroom, 120 two-bedroom and 21 three-bedroom townhomes, ranging in size from 700 to 1,250 square feet. Common amenities available include a fitness center, playground, swimming pool, dog park and an outdoor kitchen with grilling stations. All units have private entries and some features private balconies and patios. According to Yardi Matrix, the average monthly rent at the community is $1,078.
Residents of the 1972-built community have immediate access to U.S. Route 33, which facilitates transport through metro Richmond. More than a dozen schools are situated within a three-mile radius of the community. The Staples Mill Plaza shopping center is within walking distance and features a plethora of retailers and restaurants. Recreational areas such as parks and the Lewis Ginter Botanical Garden are close to the apartment community. Downtown Richmond can be reached in about 17 minutes.
Investment plans
Aurelie Capital plans to finalize the renovation process that was started by the property’s previous owner. Among planned improvements are new interiors, appliances, cabinets, flooring, stone counter tops and new fixtures in bathrooms and kitchens. The clubhouse and pool areas will receive complete renovations as well.
“For our initial investment, Millspring Commons represented a rare opportunity to acquire an institutionally maintained asset in one of the most fundamentally sound multifamily markets in the U.S. Additionally, at 97 percent leased, Millspring Commons boasts a strong current income along with its excellent upside potential, which we expect to realize through a planned $2 million capital improvement program,” said Pavan Malhotra, founder & managing principal at Aurelie Capital, in a prepared statement.
A team of CBRE brokers represented both parties in the transaction, while the Freddie Mae loan was arranged by the firm’s Mid-Atlantic Debt & Structured Finance Group. Aurelie Capital plans to invest approximately $100 million in improvements over the next 12 months, according to Malhotra.
Image courtesy of Aurelie Capital
