A 25-acre Southside apartment complex might soon have a new landlord.
The 392-unit Morningside Apartments complex is under contract to be acquired by an out-of-town buyer, said Ron Evans, head of RC Evans Management Group, which currently owns the property.
“With the favorable conditions right now, the market’s looking for multi-family housing investment opportunities,” Evans said. “It’s all a function of price and timing and investor goals, and we, as the owners, are looking to capitalize on this one.”
Evans would not disclose the sales price on the pending contract.
The 400,000-square-foot complex went on the market in October with a listing price of about $22.6 million, said Marcus & Millichap broker Chris Chadwick, who is representing the seller.
It went under contract about a month ago, and the deal is expected to close in September or October, said Chadwick, who is working the deal with the brokerage’s tax credit group.
RC Evans bought Morningside about 15 years ago in a joint venture with SunAmerica. The complex sits at 1400 Newell Road near Jahnke Road.
The team carried out a $3.5 million rehab project using low-income housing tax credits, Evans said.
The renovations included a total interior remodel and the construction of a freestanding laundry facility. The project was granted about $3.2 million in tax credits over a 10-year period, said Jim Chandler, director of the Virginia Housing Development Authority’s low-income housing tax credit program.
About 63 percent of Morningside’s units are subject to low-income housing tax credit rent limits, Chandler said. A new owner would be required to continue offering the units at the IRS-approved affordable housing rate, which Evans said typically runs about $60 to $80 below market price.
The complex is about 95 occupied, Evans said.