Middleburg Closes Workforce Housing Fund With Atlanta Portfolio Acquisition

The Virginia-based firm plans to invest a total of $91 million in the purchase and renovation of the three properties with nearly 1,000 units.
Park at Bouldercrest. Image courtesy of Middleburg

Three Atlanta apartment communities with a total of 956 units have been acquired by Middleburg and will be renovated for a complete investment of $91 million as part of the Virginia-based firm’s Middleburg Workforce Housing Fund launched earlier this year with a Kentucky property.

The multifamily properties acquired through the Workforce Housing Fund, which is now closed, are:

  • The Grove, which will be rebranded Vesta Red Oaks, a 220-unit community, currently vacant at 5100 Welcome All Road;
  • Park at Bouldercrest, which will be rebranded Vesta Bouldercrest, a 438-unit community, currently vacant, at 26 Bouldercrest Lane, S.E.;
  • Majestic Park, which will be rebranded Vesta Adams Park, a 298-unit community, approximately 15 percent occupied, at 1991 Delowe Drive, S.W.

Middleburg launched the Workforce Housing Fund in January with Vesta Derby Oaks, a previously purchased 428-unit community in Louisville, Ky. At that time, Middleburgh said it planned to raise more capital to$75 million allowing it to invest in $250 million of properties. Most of that property was vacant and Middleburg said it planned about $30 million in renovations and create 418 upgraded one-, two- and three-bedroom apartments.

The firm plans a similar strategy with the Atlanta assets, including substantial renovation of the buildings to greatly improve housing quality with an emphasis on maximizing energy efficiency to preserve affordability and lower housing costs for the residents. Middleburg is also planning community programs for the residents including job fairs, after-school programs and continuing education for adults.

Middleburg said it will use internal research and asset management teams to track and measure the success of the redeveloped properties. The data will be studied before and after renovations to continuously adjust the program and report back to investors on four areas of focus: affordability, housing quality, environment and community engagement.

Including debt, the Middleburg Workforce Housing Fund has deployed approximately $120 million across the four properties. Middleburg has partnered with KeyBank Real Estate Capital Community Development Lending and Investment (CDLI) and Capital Bank for construction financing of the Atlanta portfolio.

More Middleburg Housing Plans

The firm has initiated conversations with social impact focused institutions and accredited investors to participate in Middleburg Community Impact Fund II to continue restoring and providing critical workforce housing throughout the Southeast United States.

Since 2004, Middleburg, headquartered in Vienna, Va., has acquired and developed more than 16,000 apartment units through about $2 billion in transactions. In March, Middleburg received $9.2 million in construction financing to build Mosby University City, a 309-unit multifamily community in Charlotte, N.C., in a joint venture with The Mattoni Group.