Philadelphia-based Campus Apartments has acquired The Collection Midtown in Richmond, Va. This 20-building portfolio is situated within Richmond’s historic side-by-side neighborhoods known as the Fan District and Museum District.
The $31 million acquisition represents Campus Apartments’ third investment in Virginia’s capital city and enhances its decade long operating history in Richmond.
The 219-unit portfolio consists of one-, two- and three-bedroom apartments. They are situated within time-honored walk-up buildings conveniently located near Richmond’s fastest-growing neighborhood, Scott’s Addition. This enclave is the home of a number of popular eateries, breweries and night spots.
“We saw this as an opportunity to expand our footprint in a submarket that has truly outstanding fundamentals,” Mark Schundler, Campus Apartments’ senior vice president of investments, told MHN. “We’ve always appreciated Richmond’s ‘Eds and Meds’ demand drivers, but over the last several years, the city has become a craft beer mecca and millennial hotspot, and this portfolio is really on the doorstep of where that transformation is taking place.
“We also felt that the portfolio was a great fit for our management platform. We’ve owned and operated scattered-site housing for decades, and although it’s operationally intensive, there are often great rewards. In this instance, we were able to invest in 20 buildings at well below replacement cost, and are gaining the benefits of an irreplaceable location. We see a lot of upside and are eager to dig in.”
As to whether these apartment buildings will be converted to student housing by Campus Apartments, Schundler responded, “Our resident base is largely comprised of Millennials. Some are students, but most are a few years out of school.
“We see this as the ideal target market for these buildings, given our location at the doorstep of Scott’s Addition, Richmond’s booming entertainment district. . . We see it as a long-term hold. We’ve had a great experience in Richmond and will continue to look for opportunities to expand. The city really offers a tremendous quality of life and we don’t see its positive momentum slowing down anytime soon.”
Marking its 60th year in 2018, Campus Apartments acquires, develops, and operates student housing and Millennial-oriented multifamily throughout the country.