Kushner Acquires Richmond-Area Portfolio in $113M Deal
- Oct 13, 2020
Drucker + Falk has completed the $113 million disposition of a three-property portfolio encompassing 710 units to The Kushner Cos. The three assets previously changed hands in 2016, when Lerner Enterprises sold them for $68.5 million, according to Yardi Matrix data. Drucker + Falk financed that acquisition with three notes totaling $58 million from Prudential Financial.
Following the 2016 purchase, the company executed a $10.5 million capital improvement plan on the portfolio, according to Chief Financial Officer J. Guy Buck. The renovation process included interior unit upgrades, exterior cosmetic enhancements, as well as improving the amenity packages.
The transaction included three communities in the Richmond-Tidewater market:
- Chesapeake Bay Apartments, located at 550 St. Michael’s Way in Newport News, Va.;
- Hanover Crossing, situated at 9258 Hanover Crossing Drive in Mechanicsville, Va.;
- Wilde Lake Apartments, located at 2900 Bywater Drive in Henrico, Va.
The Chesapeake Bay and Hanover Crossing properties were built in 1987, while Wilde Lake was completed in 1989. The unit mix provides one- to three-bedroom floorplans, ranging between 486 and 1,082 square feet. Amenities include gyms, tennis courts, swimming pools and clubhouses.
The Colliers International team that assisted the seller included Charles Wentworth, Hank Hankins and Will Matthews.
In 2019, the Richmond multifamily sector saw the investment sales volume reach $1.4 billion in traded assets. However, after the COVID-19 outbreak in the U.S., these transactions all but stopped. Through May, only $189 million in multifamily properties traded in the Richmond market, according to a Yardi Matrix report.