An out-of-town buyer is adding some heat to Richmond’s already hot multifamily market.
New York-based Cedar Grove Partners LLC recently purchased the 216-unit Premier Gardens Apartments on Chamberlayne Avenue for $7.725 million.
Chris Chadwick and Altay Uzun of Marcus & Millichap represented both parties in the deal, which closed Jan. 22.
The seller was Bethesda, Maryland-based Premier Cos., which purchased the property in 2014 for $4.62 million before rebranding it from the Chamberlayne Garden Apartments.
It was an off-market deal, Chadwick said, because the buyer was interested in the area and “the seller was willing to have the conversation at the time.”
Cedar Grove Partners also purchased more than 300 units along Chamberlayne Avenue in the Ginter Park neighborhood last year. Now the firm owns around 600 units in the area, Chadwick and Uzun said.
“(The buyer) believes in the submarket because of its proximity to downtown,” Chadwick said. “His goal is to keep amassing units and be able to control that submarket and hopefully turn it around.”
Chadwick and Uzun declined to provide additional details about the buyer, and it is unclear what entity or individual is behind the LLC.
Premier Gardens Apartments, at 4307 Chamberlayne Ave., is a 140,250-square-foot property with 112 one-bedroom and 104 two-bedroom units. It is currently 78 percent occupied.
The property, built in 1946, consists of about 10 buildings ranging between two and three stories. Twenty of the units are currently “downed,” meaning they are not on the rental market.
“Within the next six to 12 months, (the new owner) is looking to bring those back to market,” Uzun said. He said the owner has not set aside a renovation budget for that additional work.
According to Uzun, the interest in Chamberlayne Avenue and the Ginter Park area speaks to Richmond’s increasingly strong multifamily market.
“What this (deal) shows is that there is confidence and demand from out-of-state buyers,” Uzun said. “They’re investing in value-add plays in the Chamberlayne-Ginter Park submarket. It shows the continuing strong fundamentals of not just the Richmond multifamily market but also the interest in the revitalization of the Ginter Park submarket.”
Richmond’s multifamily market has started the year on a hot streak. In addition to Premier Gardens, a new owner purchased a mixed-use property on East Grace Street, and Lee School Lofts landed a new buyer earlier this month.