Capital Square 1031 has acquired Misty Ridge, a 409-unit community in Woodbridge, Va., for $80.5 million. Castle Lanterra Properties sold the asset. According to Yardi Matrix, the sale was involved in a 1031 tax deferred exchange. The sale was subject to a $52.5 million Fannie Mae loan. Transwestern Commercial Services represented the seller in the transaction.
Misty Ridge is located at 1989 Delaware Drive, near Jefferson Davis Highway. The community comprises 152 one-bedroom and 257 two-bedroom units, ranging from 707 to 859 square feet. Common-area amenities include a fitness center, clubhouse, tennis court, swimming pool, spa and 840 parking spaces.
The nearby area features a plethora of retail, restaurants and entertainment, concentrated around Dale Boulevard. Several nature preserves can be visited nearby, such as the Occoquan Bay National Wildlife Refuge or Featherstone National Wildlife Refuge. Residents of the community are also close to U.S. Route 1, Interstate 95, as well as several mass transit options providing connectivity to regional employers.
Misty Ridge previously traded in 2013 when, according to Yardi Matrix, Castle Lanterra Properties acquired it for $61.5 million. Castle Lanterra invested approximately $5 million in renovations during ownership of the community. Capital Square 1031—which recently acquired an apartment community in Richmond—plans to continue renovations on the remaining 144 units, looking to achieve rent premiums ranging from $150 to $200. According to Yardi Matrix, Misty Ridge is 93 percent occupied as of June and features average monthly rents of $1,420.