West Broad Village apartments fetch $76M; $224,000 per unit

The 339-unit The Flats at West Broad Village were purchased by Atlanta-based Pollock Shores for about $76 million. (Courtesy Pollack Shores)

In one of the highest-priced multifamily deals in recent memory in metro Richmond, a Short Pump-area apartment complex is now in the hands of a new owner.

The 339-unit Flats at West Broad Village sold last month for nearly $76 million, according to a deed of trust filed with Henrico County. That amounts to about $224,000 per unit.

Atlanta-based Pollack Shores Real Estate Group was the buyer, while the seller was an entity tied to Chicago-based ShopCore Properties, which put the bulk of West Broad Village up for sale last year. The development’s commercial components remain on the market.

The bulk of West Broad Village was put up for sale a second time last year. (BizSense file photo)

The three-building apartment complex, completed about 10 years ago, is situated in the center of the mixed-use development and includes a mix of 28 one-, two- and three-bedroom units scattered across four levels. The apartments sit atop more than 100,000 square feet of ground-floor commercial space that was not part of the sale.

Pollack Shores secured about $51.2 million to finance the purchase of The Flats from Chicago-based BMO Harris Bank, according to the deed of trust. The properties most recently were assessed by the county for about $77 million.

Year to date, it’s the largest sales price for an apartment complex in metro Richmond – eclipsing the $62 million sale of the 280-unit James River at Stony Point apartments near Stony Point Fashion Park in Richmond.

Pollack Shores is a multifamily real estate firm that acquires, develops and manages apartment communities across the Southeast. Its subsidiary Matrix Residential will manage The Flats.

It’s the firm’s first acquisition in Virginia, according to its website. It remains engaged in acquisitions and development projects in several major southern cities, such as Atlanta, Orlando, Raleigh, Charlotte, Dallas and Nashville.

Upon closing the deal Feb. 28, Pollack Shores said it will pump $4.5 million in capital improvements into the Flats, including overhauling 8,300 square feet of vacant commercial space it acquired at the entry of the development into a new leasing office, fitness center and internet cafe.

Other renovations include the addition of new stainless-steel appliances, modern cabinetry and doors, plumbing and lighting fixtures, granite countertops and flooring to the apartment units.

The commercial space still up for grabs throughout West Broad Village includes the big retail boxes that house Whole Foods, REI, HomeGoods and Dave & Buster’s, and the inline space with tenants such as Gather, Burger Bach and the Wine Loft. The row of freestanding restaurants that houses Bonefish Grill, Carolina Ale House, Chuy’s, Kona Grill and Carrabba’s are also part of the listing.

Not included in the sale are the ACAC Fitness & Wellness, Golf Galaxy and Aloft Hotel buildings, which all have separate owners.

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3 Comments on "West Broad Village apartments fetch $76M; $224,000 per unit"

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Bruce Milam
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it’s not often that an investor can buy a genuine Class A value-add opportunity in this area. These apartments were built as the economy slid into a recession so many of the standard up grades we see today were not part of their buildout. Pollack Shores has an opportunity to improve them, and flip them again if they so desire. The location is difficult to beat. The price per unit is a record breaker but it won’t stand long. Theres a new record coming on its heels in West Creek.

Brad Turner
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No way. Buying a 5% cap deal at the top of the market can never be a good thing. Value-add? By adding a fitness center they will raise rents beyond what the market can pay. Not to mention the 1,000+ doors going up all around that area. $225k/unit in Richmond, VA won’t work

Bruce Milam
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Brad, I’m not familiar with you but glad to see the market has a new authority on rents and cap rates. The value-add component is the remodeling and updating of the kitchens and baths.

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