A New York firm already well acquainted with the Richmond region has dropped another eight figures in town, this time on an apartment building that sits between Shockoe Bottom and Church Hill.
Last month, Mercer Street Partners bought the 2001 East Apartments at 2001 E. Broad St. for $11.4 million.
The deal is at least the seventh in the Richmond area for Mercer Street since the firm entered the market in 2017. In total, it’s done $77 million in apartment deals in Richmond.
The 75-unit 2001 East building was built in 2011 by local developer Chris Harrison, before it was acquired in 2017 by Thalhimer Realty Partners for $9.6 million. TRP was the seller in the Mercer Street deal, which closed April 20.
In addition to the apartments, 2001 East also has a roughly 2,700-square-foot commercial space that’s occupied by the Central Montessori School. The city most recently assessed the building at $11 million.
Mercer Street Managing Partner Joe LeVine said the company is planning some upgrades to the building, including increasing its internet speed, redesigning common areas and adding package lockers to the lobby.
“As with every investment we make, we look for ways to make the resident experience a little better,” Levine said.
He added that they anticipate rents will increase over time and that the building is regularly over 95 percent occupied.
Mercer Street’s largest deal in the Richmond area was its 2019 acquisition of the 150-unit South Bank apartments in Manchester for $23 million.
2021 was a particularly busy year for the firm as it bought the Star Lofts in Petersburg for $7.3 million, then closed out the year partnering with Spy Rock Real Estate Group to buy 2031 Westwood Ave. for $7.5 million. The Westwood building is currently leased to three office and industrial tenants, and Levine said they have no plans for it at this time.
Meanwhile, across Broad Street from 2001 East, local developer Zac Frederick is preparing to break ground on a condo and townhome project at the former Duke’s Auto site at 2018 E. Broad St.