The Innslake Place Apartments at Innslake Drive and Dominion Boulevard in Innsbrook. (Jonathan Spiers photos)
Capping off a busy year of apartment deals, a pair of newly built properties on opposite sides of the river traded hands in recent weeks at nearly the same purchase price — with one of them approaching the year’s top per-door price.
The 221-unit Innslake Place Apartments — completed this year as the first of several residential developments that are reshaping Innsbrook Office Park in Henrico — sold Dec. 10 for $63 million, or about $285,000 per door.
The buyer was NorthRock Cos., a Utah-based company that entered the local market last year by paying $67 million for the 296-unit Belvedere Apartments in Midlothian.
The deal follows NorthRock’s purchase this fall of the 312-unit Sterling Beaufont apartments, now branded as The Point at Beaufont, in South Richmond for $44 million.
NorthRock’s other Richmond-area properties include the 300-unit River Forest Apartments in Chester.
Carter Wood
The seller for Innslake Place was an entity tied to PRG Real Estate, a Philadelphia-based firm that worked with developer WAM Associates LLC, led by Joe Marchetti Jr. and Richmond-based WVS Cos. The group was represented in the deal by Carter Wood, Drew White and John Reed with Berkadia.
Wood noted the transaction is the first apartment property deal in Innsbrook among the new developments that have been sprouting in the transitioning business park. He said the listing in August attracted “an abundance of interest” from prospective buyers ranging from institutional investors to private capital.
“Surprisingly, we had a lot of the institutional investors taking a look at it. Innsbrook was at the top of a lot of groups’ radar,” Wood said. “I think they’re seeing it shift west from Scott’s Addition and Richmond, as far as demand goes.”
Wood said occupancy at Innslake Place was above 90 percent at closing. Monthly rents range from about $1,400 to $1,800 for one-bedroom units above 500 square feet in size and two-bedrooms at 840 square feet, according to online rental sites.
Wood said Innslake Place had a fast lease-up, something that prompted next-door neighbor Lingerfelt CommonWealth Partners to pursue apartment infills at five of its office properties in the park.
“PRG took the concept of the smaller units and the (one-bedrooms) and played into the demand, and they’ve been leasing at a very fast pace,” Wood said. “It was a good execution on their side.”
Wood said NorthRock has increased the rental rates at Innslake Place. Attempts to reach a NorthRock representative for comment were unsuccessful.
The Artistry at Winterfield apartments as viewed from Winterfield Road earlier this year.
Another Bristol-Capital Square deal
A week after the Innslake deal, the 200-unit Artistry at Winterfield, at Winterfield Place in the Midlothian area, sold Dec. 17 for $62.2 million. The sale price equates to $311,000 per door, nearly matching the $327,000-per-door record reached in October with the $111 million sale of the Flats at West Broad Village in Henrico.
As was the case in that deal, the buyer for Artistry was Henrico-based Capital Square, marking the local real estate firm’s third deal in as many years with seller Bristol Development Group. The Tennessee-based developer previously sold Capital Square its 373-unit 2000 West Creek apartments for $103 million in 2019, and its 301-unit Canopy at Ginter Park apartments for nearly $84 million last year. Both of those deals closed soon after Bristol completed construction.
Work on Artistry wrapped up this year. The 8.8-acre property is assessed at $24.29 million, according to Powhatan County property records.
David Hanchrow
David Hanchrow, Bristol’s chief investment officer, said the plan all along was to sell Artistry to Capital Square, given their recent track record.
“We have a great working relationship with Capital Square. They always do what they say they’re going to do, and they perform well,” Hanchrow said. “It was just another seamless transaction, just the way we like it, and we look forward to doing more with them.”
While Bristol typically sells about half of the properties it develops, Hanchrow said market conditions were right to go that route with Artistry.
“We had talked to our investors about what to do with this property, and the whole potential increase in taxes weighed into the decision. As it turns out, we may not see the increase in capital gains and in ordinary rates that we thought we were going to see back in August and September. But we still thought that the property was performing so well that it was a good time to sell,” he said.
Hanchrow said the complex was about 78 percent leased when the deal closed. Artistry’s one- and two-bedroom units range from 675 to 1,265 square feet in size and rent from $1,250 to $1,750. Colliers represented Bristol in the deal.
Manchester complex sells to local buyer
Meanwhile, another apartment complex sold around the same time in Richmond’s Manchester neighborhood. The 225-unit Hudson apartments at 700 Stockton St. sold Dec. 16 for $42 million to Richmond-based Genesis Properties. The sale, which was not yet reflected in online property records, amounts to $186,667 per unit.
The seller was New Jersey-based Hudson Capital Lofts LLC, which purchased the then-named Lofts at Commerce apartments in 2017 for about $20 million. The sale was announced by Cushman & Wakefield, with Jorge Rosa, T.J. Liberto and Parker Stevens in the brokerage’s Tysons office working the deal.
The Innslake Place Apartments at Innslake Drive and Dominion Boulevard in Innsbrook. (Jonathan Spiers photos)
Capping off a busy year of apartment deals, a pair of newly built properties on opposite sides of the river traded hands in recent weeks at nearly the same purchase price — with one of them approaching the year’s top per-door price.
The 221-unit Innslake Place Apartments — completed this year as the first of several residential developments that are reshaping Innsbrook Office Park in Henrico — sold Dec. 10 for $63 million, or about $285,000 per door.
The buyer was NorthRock Cos., a Utah-based company that entered the local market last year by paying $67 million for the 296-unit Belvedere Apartments in Midlothian.
The deal follows NorthRock’s purchase this fall of the 312-unit Sterling Beaufont apartments, now branded as The Point at Beaufont, in South Richmond for $44 million.
NorthRock’s other Richmond-area properties include the 300-unit River Forest Apartments in Chester.
Carter Wood
The seller for Innslake Place was an entity tied to PRG Real Estate, a Philadelphia-based firm that worked with developer WAM Associates LLC, led by Joe Marchetti Jr. and Richmond-based WVS Cos. The group was represented in the deal by Carter Wood, Drew White and John Reed with Berkadia.
Wood noted the transaction is the first apartment property deal in Innsbrook among the new developments that have been sprouting in the transitioning business park. He said the listing in August attracted “an abundance of interest” from prospective buyers ranging from institutional investors to private capital.
“Surprisingly, we had a lot of the institutional investors taking a look at it. Innsbrook was at the top of a lot of groups’ radar,” Wood said. “I think they’re seeing it shift west from Scott’s Addition and Richmond, as far as demand goes.”
Wood said occupancy at Innslake Place was above 90 percent at closing. Monthly rents range from about $1,400 to $1,800 for one-bedroom units above 500 square feet in size and two-bedrooms at 840 square feet, according to online rental sites.
Wood said Innslake Place had a fast lease-up, something that prompted next-door neighbor Lingerfelt CommonWealth Partners to pursue apartment infills at five of its office properties in the park.
“PRG took the concept of the smaller units and the (one-bedrooms) and played into the demand, and they’ve been leasing at a very fast pace,” Wood said. “It was a good execution on their side.”
Wood said NorthRock has increased the rental rates at Innslake Place. Attempts to reach a NorthRock representative for comment were unsuccessful.
The Artistry at Winterfield apartments as viewed from Winterfield Road earlier this year.
Another Bristol-Capital Square deal
A week after the Innslake deal, the 200-unit Artistry at Winterfield, at Winterfield Place in the Midlothian area, sold Dec. 17 for $62.2 million. The sale price equates to $311,000 per door, nearly matching the $327,000-per-door record reached in October with the $111 million sale of the Flats at West Broad Village in Henrico.
As was the case in that deal, the buyer for Artistry was Henrico-based Capital Square, marking the local real estate firm’s third deal in as many years with seller Bristol Development Group. The Tennessee-based developer previously sold Capital Square its 373-unit 2000 West Creek apartments for $103 million in 2019, and its 301-unit Canopy at Ginter Park apartments for nearly $84 million last year. Both of those deals closed soon after Bristol completed construction.
Work on Artistry wrapped up this year. The 8.8-acre property is assessed at $24.29 million, according to Powhatan County property records.
David Hanchrow
David Hanchrow, Bristol’s chief investment officer, said the plan all along was to sell Artistry to Capital Square, given their recent track record.
“We have a great working relationship with Capital Square. They always do what they say they’re going to do, and they perform well,” Hanchrow said. “It was just another seamless transaction, just the way we like it, and we look forward to doing more with them.”
While Bristol typically sells about half of the properties it develops, Hanchrow said market conditions were right to go that route with Artistry.
“We had talked to our investors about what to do with this property, and the whole potential increase in taxes weighed into the decision. As it turns out, we may not see the increase in capital gains and in ordinary rates that we thought we were going to see back in August and September. But we still thought that the property was performing so well that it was a good time to sell,” he said.
Hanchrow said the complex was about 78 percent leased when the deal closed. Artistry’s one- and two-bedroom units range from 675 to 1,265 square feet in size and rent from $1,250 to $1,750. Colliers represented Bristol in the deal.
Manchester complex sells to local buyer
Meanwhile, another apartment complex sold around the same time in Richmond’s Manchester neighborhood. The 225-unit Hudson apartments at 700 Stockton St. sold Dec. 16 for $42 million to Richmond-based Genesis Properties. The sale, which was not yet reflected in online property records, amounts to $186,667 per unit.
The seller was New Jersey-based Hudson Capital Lofts LLC, which purchased the then-named Lofts at Commerce apartments in 2017 for about $20 million. The sale was announced by Cushman & Wakefield, with Jorge Rosa, T.J. Liberto and Parker Stevens in the brokerage’s Tysons office working the deal.
I don’t understand how the Richmond area job market can sustain the high rent prices on so many of these newly constructed apartment buildings. The demand must be there, apparently. Bring on the people from Northern Virginia to pontificate about how cheap Richmond is and how everyone here is backwards and ignorant.