Capital Square Acquisitions LLC has acquired the Hickory Creek Apartments, a 294-unit community in Henrico, Va., from a joint venture between McCann Realty Partners and Artemis Real Estate Partners, for $45.6 million. Colliers International represented the seller in the transaction.
Located at 2344 Hickory Creek Drive, the community was originally built in 1984 and offers one- and two-bedroom units.
“Multifamily buyers across the country are targeting value add opportunities…the strategy to invest capital in interior and property improvements to ultimately increase rents and boost returns for their partners and equity sources,” Charles Wentworth, Colliers International’s senior vice president, Mid-Atlantic, told Multi-Housing News. “The seller of Hickory Creek had started the program and established a blue print for new ownership to continue and further expand upon.”
According to Wentworth, there was overwhelming interest in the offering and Colliers conducted nearly 40 property tours from a large and diverse group of national investors.
“Our understanding is that new ownership will continue with interior upgrades and enhance property amenities to further the resident living experience that the seller started,” he added.
A Stable Market
According to a recent Yardi Matrix Report, the Richmond–Tidewater market continues to be a stable multifamily market and has seen steady rent increased and a strong absorption of new stock.
The report showed as of August, occupancy in stabilized properties was 95.2 percent, following a previous 12 months of flat occupancy. Furthermore, the rents increased 3.0 percent year-over-year through September, on par with the U.S. figure.
Hickory Creek is located in one of Richmond’s most sought after submarkets: The West End, near I-64 and I-295. The submarket benefits from strong apartment fundamentals, limited new supply and a superior public school system. It’s also nearby in-demand retail and entertainment amenities and just 11 miles from downtown Richmond.
“Hickory Creek occupies a strategic location in the heart of Henrico County with excellent access to the area’s main thoroughfares, key employment nodes and abundant retail,” Wentworth said. “In addition, the seller had addressed all major asset preservation needs and successfully implemented a clear, proven-out value add strategy that new ownership will look to continue.”
Joining Wentworth on the deal were Will Mathews of the Colliers East Region Group and Rawles Wilcox, G.S. (Hank) Hankins, Victoria Pickett and Clay Ellis of the Colliers Mid-Atlantic Team.