A North Carolina-based firm just picked up a 22-acre apartment complex and plans more than $1 million in renovations.
Grubb Properties last week acquired the 312-unit Beaufont Oaks apartment complex off Midlothian Turnpike for $18.5 million, according to city records.
The real estate investment firm, which also owns an apartment complex in Manchester, has $1.5 million more in renovations planned for the property this year including an upgraded clubhouse and pool, new siding and a new dog park.
“We think there’s tremendous opportunity with that property,” Grubb Properties Executive Vice President Todd Williams said. “The previous owner completed some of that work… we thought there was an opportunity for us to come in and complete the balance and make some changes to the amenities that are currently on that property.”
Beaufont Oaks takes up 22 acres just north of Midlothian Turnpike and on the Richmond City side of Chippenham Parkway. Its apartments were built between 1980 and 1984 and the complex totals 363,000 square feet.
At 6851 W. Carnation St., the complex sits less than one mile from Stonebridge, a massive Kroger-anchored retail redevelopment at the site of the former Cloverleaf Mall.
“That to us was a sign that was very encouraging for us to take on a reposition like this,” Williams said. “Midlothian at first glance looks to be a somewhat dated retail corridor but we were very encouraged to see some of the new development that is being put in place.”
The progress at Stonebridge also helped drive the January sale of the nearby Cloverleaf Office Park.
The $18.5 million sale price for Beaufont makes Grubb’s acquisition the biggest multifamily deal this year within the city limits. Headquartered in Charlotte, N.C., Grubb financed the purchase with a mix of credit and equity. Williams said they’ll take on two existing loans on the property and initiated a third. Grubb pitched in cash from its Southeast Value-Add Apartment Fund.
Beaufont Oaks is Grubb’s first Richmond area acquisition after building the 187-unit Link Manchester Apartments at 901 McDonough St. in 2012. Richmond is the firm’s northernmost market and Williams said Grubb doesn’t have any more immediate acquisitions immediately planned in the area.
“We keep our eyes open,” Williams said. “This is a big project for us so we’re likely to pause a little bit while we swallow this and make sure we execute on the capital improvement program we have planned.”