Richmond-Area Property Gets New Owners

Capital Square Apartment REIT has acquired a newly completed Class A community in Midlothian, Va.

Sapphire at Centerpointe. Image courtesy of Capital Square Apartment REIT

Navigating an expedited due diligence period, Capital Square Apartment REIT acquired months-old Sapphire at Centerpointe, a Class A apartment community in an area of suburban Richmond, Va. displaying strong fundamentals.

Located at 14250 Sapphire Park Lane, the property offers 192 units in a mix of one-, two- and three-bedroom residences ranging in size between 860 square feet and 1,482 square feet. The community is currently 97 percent leased.

Apartments feature island kitchens, granite countertops, in-unit washers and dryers, framed mirrors and air conditioning. Quick-charge electric car charging stations are among the leading amenities of Sapphire at Centerpointe.

“There was a quick, 21-day due diligence period that Capital Square navigated successfully,” Capital Square CEO Louis Rogers told Multi-Housing News.

A recent report from the Mortgage Bankers Association’s Research Institute for Housing America mentioned Richmond among the ten cities projected to see the highest appreciation of median rents in 2021.

Strong appeal

Sapphire at Centerpointe attracted its new owner due to its good location in a thriving city with a well-educated citizenry and elevated median area household income. In addition, the premium property is enjoying significant rent growth now that introductory lease concessions are burning off and unit rollovers and renewals are taking place.

The historic city of Midlothian is situated along the shoreline of the James River, approximately 15 miles west of downtown Richmond.  John Tyler Community College is located within close proximity to Sapphire at Centerpointe, while the University of Richmond and Virginia Commonwealth University are about 13 and 16 miles away, respectively.

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What’s more, the Richmond multifamily market tallied the strongest quarterly asking rent gains in the second quarter of 2020 of any major market in the nation. The city benefits from a diverse employment base, including 10 Fortune 1000 and 7 Fortune 500 companies.

Walker & Dunlop’s Alexandra Huffman, Justin Nelson and Lynn Pearson sourced the acquisition loan, with a 10-year term and 3.16 percent fixed interest property loan rate.

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