RICHMOND, VA – Four Mile Capital (FMC), a Louisville, CO-based private real estate investment firm, has acquired the River & # 39; s Edge at Manchester Apartments, a 212-unit apartment building in Richmond, VA. River & # 39; s Edge was built in 2018 and is currently 94% occupied. It sits on nearly 2 acres in one of Richmond's fastest growing submarkets. The distinctive luxury community consists of 131 one-bedroom units, 80 two-bedroom units, and a three-bedroom penthouse, each with their own terrace. Greystar has received the property management contract.
The transaction closed on April 16, 2021 for $ 47,500,000, which is $ 224,000 per unit or $ 252 per square foot. As part of its acquisition, FMC raised over $ 15 million in equity from its network of high net worth investors and took over the seller's $ 34 million Fannie Mae loan with a remaining term of 8 years. This is FMC's second asset in the Richmond Market.
“The success of this transaction speaks to the strength of our relationships and our track record in closing, two cornerstones of the business we are building. We were given this off-market opportunity because of our history with the local Berkadia Investment Sales Office selling another of ours in Virginia, and we quickly established a productive relationship with the seller, a local development group. We provided the seller with confidence to execute and a faster path to close than if they waited for their business to market until 2021 while freeing up their resources earlier to work on their next project. We measure the success of a transaction when all parties feel they have achieved a positive outcome and this is a great example of this collaboration at work, ”said Eric Mallon, one of FMC's founding partners.
River & # 39; s Edge is located in the Richmond submarket of Manchester, just across from downtown James River. This is a fast-moving, high-density neighborhood with a variety of bars and restaurants in close proximity to the property and within minutes of two major universities (University of Richmond and Virginia Commonwealth University) and the highest concentration of jobs in the subway -Area. The property is just 5 minutes from downtown, 15 minutes from FMC's other Richmond property (Laurel Pines) and 20 minutes from Richmond International Airport.
The acquisition, FMC's sixth in the state of Virginia, is in line with its initiative to expand into markets with balanced prospects for stability and growth throughout the southern United States. “For us, Richmond is the epitome of the post-pandemic market with vibrant and diverse business, technology and cultural institutions, a built-in, well-trained workforce, very affordable cost of living and a central location on the east coast. Richmond offers its residents most, if not all, of the amenities typically found in larger cities, plus all of the small town benefits, and is able to get out of the current recession, ”Mallon continued.
The newer River & # 39; s Edge apartments were built to LEED standards with walls and floors made of poured concrete and an accent panel made of brickwork and stucco. The unit's interior features premium finishes such as quartz countertops, tile backs, cooking islands, and rust-proof appliances and was delivered with no delayed maintenance or anticipated capital requirements. The first-class equipment package includes a spacious plaza deck on the 3rd floor with a heated saltwater pool in resort style, a fireplace, a zoo, a state-of-the-art fitness center with cardio theater and a Peloton fitness on demand system and a sky lounge on the 10th floor Floor which is very attractive to Manchester residents.
FMC's business plan will focus on improving operations by implementing innovative management and marketing strategies and leveraging their institutional grade asset management platform to control operating costs, promote other income opportunities and make strategic decisions for the asset . “River's Edge is representative of the risk-adjusted return investment profile we are excited about right now, and this is our fourth acquisition in a row since 2018. By buying these newer assets below market and replacement costs, we are essentially eliminating all capital and capital Execution Risk that comes with buying an older property with added value, but we don't just rely on the sub-market appreciation to add value to our investors. With the background and experience of our teams in operations, we are able to find creative ways to actively grow income and better manage expenses in order to increase NOI during hold time, ”said Chris Geer, a Another founding partner of Four Mile. "It is becoming an increasingly central part of our investment strategy and seems to be resonating with investors in this time of relative uncertainty."
