Virginia Apartment Community Acquired by Tryko Partners
- May 31, 2013
Richmond, Va.—Brick, N.J.-based Tryko Partners LLC has added Midlothian Village, a 216-unit Richmond, Va., apartment community to its portfolio of affordable housing. This is Tryko’s initial foray into the Virginia market.
The 42-year-old Midlothian Village is located at 4000 Midlothian Turnpike in Richmond, and offers 120 two-bedroom and 96 three-bedroom apartments. It also has an onsite leasing office, laundry facilities and a children’s playground. The community is conveniently located near schools, public transportation, shopping, neighborhood services and recreational facilities.
The building was constructed under the Section 42 Low Income Housing Tax Credit program, and has a Housing Assistance Payment (HAP) in place.
The Richmond market is a natural choice for Tryko Partners, which over the last several years has expanded its holdings south down the Eastern Seaboard to southern Maryland.
“Tryko Partners specializes in affordable housing product, and we really have been looking to get into the Virginia market for a while,” Uri Kahanow, director of acquisitions for Tryko Partners, tells MHN. “Midlothian Village is an excellent first regional investment for our company. The property is a well-maintained affordable apartment community in a desirable neighborhood, which fits our expansion strategy.”
He notes that Richmond offers residents a low cost of living, pleasant climate, strong transportation infrastructure and outstanding quality of life. “Add to that a growing population and strong employment base, and this is a great place for us to be. We look forward to pursuing additional investments in the region,” he says.
On the whole, this was a straightforward transaction, Kahanow reports. Because Tryko Partners needed to assume two loans, a number of approvals and consents were required for the transaction to close.
“This took time, but great cooperation among everyone involved enabled the many moving parts to come together smoothly,” he says.
On the equity side, this represented the third multifamily joint venture between Tryko Partners and a Boston investment management firm. “This is one of our strongest capital partner relationships,” says Chad Buchanan, Tryko Partners’ chief investment officer. “Midlothian Village was their first closing in a new fund, a significant statement of their trust in Tryko as their operating partner.”
Kahanow says Tryko Partners takes pride in being a hands-on operator with excellent HUD relationships.
“Because Midlothian Village is a tax-credit property, its ownership and the city of Richmond have always worked together closely, and we look forward to continuing that positive association,” Kahanow says. “As an affordable housing specialist, we are committed to assisting residents in any capacity possible, and we have had a lot of success partnering with neighborhood leaders and community organizations that help tenants who need it. This approach reflects our belief that, in order to preserve housing for the long term, it is necessary to invest in and support a high quality of life.”