One of the city’s earlier historic tax credit conversions just changed hands, joining a recent wave of transactions in a section of the city getting a jolt from public and private investments.
The Exchange Alley Lofts, a 27-unit property at 8-10 S. 14th St. on the edge of Shockoe Slip and Shockoe Bottom, sold earlier this month for about $1.5 million, according to city records.
Martin Mooradian, a broker with Marcus & Millichap that represented the seller – PJS Associates, which had owned the property since 1994 and redeveloped it the following year.
The buyer was Midlothian-based CAO Apartments LLC.
Mooradian’s colleagues Christopher Chadwick and Dawson Rinder also worked the deal. The property was most recently assessed for $1.2 million.
It’s the second apartment deal Marcus & Millichap has completed around South 14th St. in recent weeks. It represented Louis Salomonsky and David White’s Main Street Realty in the $6.3 million sale of The Corner Lofts at 1321 ½ E. Main St. late last month. A Northern Virginia investor was the buyer in that deal.
The Exchange Alley Lofts building was first constructed in 1870 and redeveloped in 1995 as one the city’s earliest historic tax credit conversions, Mooradian said. Its 27-units are comprised of nine studio units; 16 one-; and 2 two-bedroom units.
Prior to the close of the property, Mooradian said all but two of the units were occupied.
The apartments rent as low-income units, meaning rental rates for its residents are based on the percentage of the residents’ income versus market rates.
In the Shockoe Bottom and Shockoe Slip area, the average market rent ranges from $1,000 a month for a studio or one-bedroom unit, to around $1,200 and above for a two-bedroom apartment.
Mooradian, who would not disclose the buyer’s identity, said the new owner plans to address several deferred maintenance issues and will maintain it as a low-income tax credit property.
The latest transaction adds to the investment streak in and around Shockoe Bottom.
In all, more than $13.5 million in sale have occurred in the neighborhood since last spring, which includes the sale of 1710 E. Franklin St., the Enders Warehouse at 20 N. 20th St. and the startup incubator backed by Capital One is set to fill 36,000 square feet at 1717 E. Cary St.