198 apartment units hit the VCU market

Clachan Properties' building at 709-713 W. Broad St. (Photos by Michael Schwartz)

Clachan Properties’ building at 709-713 W. Broad St. (Photo by Michael Schwartz)

Another large portfolio of apartments in the city is on the market.

Clachan Properties has put nine of its student apartment properties in the VCU area up for sale with a price tag of $32.57 million.

The properties account for 198 units, all in the heart of the VCU campus. The buildings have been on the market for about two weeks, according to Chris Chadwick, a broker handling the listing for commercial real estate firm Marcus & Millichap.

“It’s all location,” Chadwick said. “Right now, the biggest driver in that market is VCU.”

Clachan’s properties for sale include 1011 W. Marshall St., 401 W. Grace St., 822 and 826 W. Broad St., 302 N. Goshen St., 900-904 W. Broad St., 709-713 W. Broad St., 1318 W. Broad St. and 119-123 W. Broad St. There are 10 ground-floor commercial spaces included in the deal.

Clachan redeveloped all the properties over past seven years in historic tax credit deals, Chadwick said.

They had a combined 99.5 percent occupancy rate last year, and 97 percent of the residents are students, he said.

The nine properties account for the bulk of Clachan’s holdings in Richmond.

“They are doing a bunch of deals in North Carolina, and they saw an opportunity to make a bunch of money and were willing to test the market,” Chadwick said.

Lindsay Velasco, operations manager for Clachan, did not return calls seeking comment.

The listing follows Cleveland-based developer Forest City putting its collection of properties on Tobacco Row up for sale. That portfolio includes five renovated apartment buildings with more than 700 units. Its broker told BizSense last month that the buildings are expected to fetch about $120 million.

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