A growing local property management company has acquired one of its peers, allowing a pair of prominent businessmen to hone in on their development portfolio.
Dodson Property Management last week purchased Fountainhead Development’s property management division, CoreRVA Properties Inc.
In the works since May, the deal closed Aug. 1, bringing the total number of single-family and multifamily units in Dodson’s portfolio to 3,300. There was no change in ownership of any of the properties and terms of the deal were not disclosed.
Dodson president Duke Dodson said the acquisition of CoreRVA adds 730 apartment units to the firm’s portfolio. The units are spread across six properties with the bulk comprising The Locks at 311 S. 11th St. downtown and the Miller Lofts, Plant Zero and New Manchester Flats in Manchester. Those properties were all developed by Fountainhead and managed by CoreRVA.
Fountainhead owners Tom Papa and Rick Gregory branded the company’s property management operations as CoreRVA about four years ago and offered up its services to other landlords.
Gregory said the decision to split off CoreRVA from Fountainhead was motivated in part because he and Papa want to focus more on developing properties.
“They’re really two different types of businesses,” Gregory said. “Property management is something where you really need to have economies of scale. It just made sense from a focus perspective to divest and let them manage it.”
Elsewhere around town Fountainhead is in the process of converting 850,000 square feet of warehouse space to flex space off Jefferson Davis Highway. Gregory said the company plans to close in September on the sale a 1.3-acre parcel at 321 S. 10th St. to Dominion Realty Partners to make way for new SunTrust-anchored tower.
Gregory described the sale of CoreRVA as a seamless transfer with Dodson taking on CoreRVA’s 23 employees. Dodson was a 40-person company prior to the deal and is based out of 409 E. Main St. according to a news release sent Friday.
CoreRVA isn’t the first property management company that Dodson has acquired. In 2014, it added 71 homes and six commercial properties with the purchase of Fredericksburg-based Park Hill Properties. Before that, Dodson added 93 single-family homes to its portfolio with the acquisition of Property Managers of Virginia in Mechanicsville.
Dodson Property Management isn’t Duke Dodson’s only venture in town. He is a co-owner of Gather, a coworking brand with two locations in Richmond. He also represented Capital Square 1031 in its $8 million purchase of the 70-unit Perry Place apartment building in Manchester in January.