Culpeper property manager plans million-dollar spruce-up

The 392-unit Morningside Apartments complex. (Photo by Burl Rolett)

The 392-unit Morningside Apartments complex. (Photo by Burl Rolett)

A sprawling Southside apartment complex has a new owner.

Culpeper, Va.-based Cannon Properties bought the 25-acre, 392-unit Morningside Apartment last month for more than $17 million. The firm has another $1 million in renovations in store for Morningside, its only current holding in the Richmond market.

“We’re doing a lot of siding work, repainting and general clean up and fix up,” Cannon Properties owner Bill Cannon said. “We’re also redoing the swimming pool.”

Cannon Properties is a multifamily-focused real estate company with holdings across Charlottesville, Fredericksburg and Louisa County, among other Central Virginia markets. The company bought the Morningside in a 1031 exchange transaction, using proceeds from the sale of a 300-unit apartment complex in South Carolina.

Morningside’s 392 units are currently about 90 percent occupied, Cannon said.

“It has very low turnover, which is a key feature we look for when we are trying to acquire property,” he said.

RC Evans Management Group previously owned Morningside. It bought the property about 15 years ago in a joint venture with SunAmerica and carried out a $3.5 million rehab using low-income housing tax credits.

As a result, about 63 percent of Morningside’s units are subject to low-income housing tax credit rent limits, meaning they will be offered below market rate.

“We have a property in Charlottesville that is very, very similar to this property,” Cannon said. “It addresses the 60 to 80 percent of median income range, and both properties had some age on them and we can do rehab with them.”

The 400,000-square-foot complex at 1400 Newell Road, between Jahnke Road and Westower Drive, went on the market in October 2012 at a listing price of about $22.6 million. Morningside went under contract in August 2013, but that deal eventually fell through, clearing the way for Cannon Properties to close on the complex.

The deal was brokered by Chris Chadwick and the Marcus and Millichap tax credit group, which handled the transaction on behalf of both the buyer and seller.

The 392-unit Morningside Apartments complex. (Photo by Burl Rolett)

The 392-unit Morningside Apartments complex. (Photo by Burl Rolett)

A sprawling Southside apartment complex has a new owner.

Culpeper, Va.-based Cannon Properties bought the 25-acre, 392-unit Morningside Apartment last month for more than $17 million. The firm has another $1 million in renovations in store for Morningside, its only current holding in the Richmond market.

“We’re doing a lot of siding work, repainting and general clean up and fix up,” Cannon Properties owner Bill Cannon said. “We’re also redoing the swimming pool.”

Cannon Properties is a multifamily-focused real estate company with holdings across Charlottesville, Fredericksburg and Louisa County, among other Central Virginia markets. The company bought the Morningside in a 1031 exchange transaction, using proceeds from the sale of a 300-unit apartment complex in South Carolina.

Morningside’s 392 units are currently about 90 percent occupied, Cannon said.

“It has very low turnover, which is a key feature we look for when we are trying to acquire property,” he said.

RC Evans Management Group previously owned Morningside. It bought the property about 15 years ago in a joint venture with SunAmerica and carried out a $3.5 million rehab using low-income housing tax credits.

As a result, about 63 percent of Morningside’s units are subject to low-income housing tax credit rent limits, meaning they will be offered below market rate.

“We have a property in Charlottesville that is very, very similar to this property,” Cannon said. “It addresses the 60 to 80 percent of median income range, and both properties had some age on them and we can do rehab with them.”

The 400,000-square-foot complex at 1400 Newell Road, between Jahnke Road and Westower Drive, went on the market in October 2012 at a listing price of about $22.6 million. Morningside went under contract in August 2013, but that deal eventually fell through, clearing the way for Cannon Properties to close on the complex.

The deal was brokered by Chris Chadwick and the Marcus and Millichap tax credit group, which handled the transaction on behalf of both the buyer and seller.

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