Bonaventure has formed a strategic partnership with SNP Properties to acquire an ownership interest in the five-story Vida East at Church Hill in the Church Hill neighborhood of Richmond, Va. The company partnered with SNP through an umbrella partnership real estate investment trust transaction.
According to NASDAQ, an UPREIT is an entity that REITs use to let property owners contribute their real estate property in exchange for operating partnership units that can be converted into REIT shares. Like a 1031 exchange, this transaction lets property owners avoid capital gains taxes on appreciated real estate.
“In today’s heady market, simply selling an asset for cash may not accomplish an owner’s needs or may not be feasible. UPREIT transactions help traditional owners accomplish their goals when a traditional sale won’t allow for that,” Dwight Dunton, founder & CEO of Bonaventure, told Multi-Housing News.
The 178-unit Vida East at Church Hill, located at 1903 E. Marshall St., offers studio, one- and two-bedroom units, ranging from 351 square feet to 1,192 square feet. Apartment amenities include controlled access, above-standard ceiling heights, hardwood floors, energy-efficient appliances, washers/dryers, microwaves, designer slate cabinetry, granite countertops and open floorplans.
Residents have access to conveniences that include a rooftop mezzanine with a fire pit, a skyline entertainment lounge, a private theater room, a courtyard area with a fire pit, a coffee bar, a quite study/reading room, a swimming pool and sundeck and a 24/7 fitness center. The property has 270 parking spaces, with covered parking available for an additional fee.
“Vida East represents the strategic growth that we’re looking for. Bonaventure invests in Southeastern growth markets and submarkets that will continue to grow and great buildings within them. Vida East checks all those boxes. Bonaventure is a people business that just happens to own real estate. SNP is the kind of partner we want to do business with,” said Dunton.
Bonaventure was represented in-house in the UPREIT transaction by Dunton and Jimmy Parker. SNP was represented in-house by Eric Phipps.
Bonaventure noted it actively looking to grow its portfolio throughout the Southeast. In the Richmond area, the company owns the 132-unit Rockwood Park Apartments in Chesterfield and the 94-unit Scott’s Edge Apartments in the Scott’s Addition neighborhood. In the Alexandria area, it owns the 94-unit Messenger Place in Manassas and the 104-unit Commons on Potomac Square in Sterling. Bonaventure owns 15 multifamily properties, totaling 3,495 units, in the Hampton Roads area.
The company has several development projects in the pipeline in Virginia. Bonaventure plans to build the second phase of Scott’s Edge Apartments on land across the street from the property. It has also broken ground on a 133-unit senior housing development in Old Town Alexandria and expects to deliver the project in 2024.