PRG Completes $45.5M Sale of Norfolk Property

Fannie Mae provided part of the acquisition financing for the Heather Lake community.

99 Tide Mill Lane

99 Tide Mill Lane

PRG Real Estate has completed its $45.5 million purchase of Heather Lake, a 252-unit garden-style apartment community located at 99 Tide Mill Lane, in Hampton, Va. PRG acquired the property from seller Artcraft Management, and two teams from Berkadia oversaw the transaction as well as the procurement of a ten-year, $27.4 million permanent acquisition loan, financed through Fannie Mae.

Heather Lake was constructed in 1973 and hosts 22 buildings totaling 284,450 square feet of space, according to CommercialEdge data. The community features a mix of one-, two-, three- and four-bedroom arrangements. Unit amenities include laundry appliances, as well as private balconies and patios. Community amenities include a swimming pool, playground and dog park. The property is situated at the intersections of Tide Mill Lane and La Salle Ave., within 15 miles of Norfolk and the greater Hampton Roads area, with quick access to many of the city’s largest employers.

The Berkadia team overseeing the sale was led by Senior Managing Director Drew White, Senior Director David Hudgins and Director Carter Wood. Managing Director Donald Marshall supervised the securing of the loan.

Hampton Roads’ hefty market

The sale of Heather Lake takes place as the larger Hampton Roads multifamily market experiences accelerating demand that the city’s supply pipeline has been able to keep up with. The entire metro is seeing a 95.9 percent occupancy rate alongside 4,004 units under construction, with Norfolk in particular seeing the most development, according to data from a Colliers report covering Hampton Roads in the first half of 2022. Additionally, the area’s sales volume has increased by $400 million over the same period, totaling $900 million in transactions, a 77 percent increase year-to-date, the same data shows. Multifamily continues to remain a valuable and stable asset all across Virginia.

READ ALSO: Apartment Market Conditions Improve: NMHC

Other area deals in the Hampton Roads metro include Cleghorn Capital’s purchase of River Breeze Apartments, a 200-unit market-rate community in Newport News, as well as Broad Street Realty’s $122 million acquisition of Midtown Row, a student housing community in Williamsburg.

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