After a red hot 2021, the local apartment market’s first big deal of 2022 comes with a whopper of a price tag.
The 11 North at White Oak apartments in Eastern Henrico sold last week for $154.4 million, county records show.
Located at 11 N. Laburnum Ave., the apartment complex includes 1,184 units and spans 109 buildings on 84 acres. The overall price tag is the largest ever paid for a multifamily property in Henrico County and the largest such deal in the region as a whole in recent memory. The cost per-door clocked in at just shy of $130,500.
The new owner is New York-based real estate investment firm AION Partners, which did not respond to a request seeking comment.
Per its website, AION was founded in 2011 and focuses on investing in what it describes as under-capitalized and workforce housing assets to provide returns to its “exclusive investor group.”
11 North joins 33 other properties in AION’s portfolio, most of which are in the Mid-Atlantic region. The deal looks to be its first in the Richmond region.
The seller was an entity tied to Texas-based C-III Capital Partners, which bought the apartments at auction in 2013 for $35.5 million after they fell into foreclosure. They were known as the Seven Gables Apartments at the time.
Cushman & Wakefield’s Jorge Rosa and Anthony Liberto worked the deal.
The 48-year-old apartment complex was most recently assessed by Henrico at $76 million.
Wink Ewing, a broker with Northmarq who’s handled many sizable local apartment deals, said a complex like 11 North with more affordable units fetching a price tag of $154 million is a sign that Richmond is firmly on the radar of institutional investors.
“It’s great to see that kind of pricing and that aggressive bidding is alive and well in that class of property, which is somewhat more affordable,” Ewing said.
He added that it’s also a big deal for that eastern Henrico submarket and the entire Richmond region.
“Eastern Henrico kind of gets overlooked compared to Short Pump and areas in Chesterfield and the city. When it comes to bigger deals, there hasn’t been a ton of deals out there that really point to it being a hotspot for investors to put really big outside capital into it,” Ewing said. “It’s great momentum for Richmond as a whole.”
The 11 North transaction marks the third local apartment sale in the last five months to eclipse a nine-figure price tag. In late December, local firm Levco Management bought the 716-unit Crystal Lakes Apartments in Chesterfield for $106 million. The highest per-door mark the region’s ever seen was set in October by Capital Square, which bought the Flats at West Broad Village apartments for $111 million, or $327,000 per door.