CAPREIT Acquires Virginia Portfolio for $167M

Marina Villa. Image courtesy of NorthMarq

Developer Waverton Associates Inc. has sold a four-property apartment portfolio in Virginia for $167 million, buoyed by a strong multifamily market in the Richmond-Hampton Roads region. CAPREIT, a large regional investor, purchased the 1,063-unit collection of assets, according to Yardi Matrix.

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NorthMarq, which represented the seller as well as the buyer, said in a statement that the properties were financed through the Virginia Housing Development Authority and that the off-market transaction involved the assumption of existing debt. The quartet of assets includes one property in Richmond, two in Newport News—southeast of the Virginia capital—and another in neighboring Norfolk.

CAPREIT’s acquisition includes:

• Meridian Watermark (300 units): 6500 Caymus Way, Richmond
• Impressions I, II, & III (414 units): 501 Coral Key Place, Newport News
• Denbigh Village (244 units): 14332 Deloice Crescent, Newport News
• Marina Villa (105 units): 8150 Shore Drive, Norfolk

The properties were generally built in the last decade. The newest community, Marina Villa in Norfolk, was completed last year, while the oldest, Waverton Impressions in Newport News, was built in phases from 1992 to 2006. Yardi Matrix records an occupancy rate of 99 percent for Meridian Watermark and more than 97 percent for Impressions. A NorthMarq investment sales team of Mike Marshall, Wink Ewing and Ryan Rilee arranged the deal.

CAPREIT owns and manages multifamily communities across the country and provides asset management services to more than 15,000 apartment units in addition to its own portfolio. The company’s Virginia acquisition adds to a flurry of large transactions in the Richmond and Hampton Roads region, in which cap rates reached 5 percent or lower, according to NorthMarq.

The Kushner Cos. completed the $113 million purchase of a three-property portfolio spanning 710 units in the Richmond-Tidewater market last October. Drucker + Falk sold the communities, located in Newport News, Mechanicsville and Henrico.