The apartment complex in southeastern Chesterfield sold for nearly $18 million more than it did in 2020. (Mike Platania photo)
A Chesterfield apartment complex’s streak of changing hands every three years continues, with one of the larger real estate deals recorded in the county this year.
The Courthouse Green Townhomes at 6417 Statute St. near the county government center sold late last month for $50.9 million.
Jones Street Investment Partners, a Boston-based firm, was the buyer, making it the fourth company to own the 266-unit, market-rate complex since 2014.
Jones Street bought the property on Sept. 29 from a joint venture between local firm McCann Realty Partners and Philadelphia-based LEM Capital. That group bought Courthouse Green in 2020 for $33 million from Maryland firm RailField Realty partners, which had paid $25 million for it in 2017.
Three years before RailField’s deal, the apartments were sold in 2014 to a division of Canadian conglomerate Brookfield Corp. for $23 million.
Sitting on 21 acres southeast of the Chesterfield County Airport, Courthouse Green spans 34 buildings that were built 50 years ago. The complex was most recently assessed by the county at $31.6 million, and the latest per-door sales price clocked in at $191,000.
Founded in 2014, Jones Street is privately held and exclusively invests in, develops and manages multifamily properties. The firm counts about 6,000 units in its portfolio, and Jones Street co-founder Matt Ranalli said the group primarily does deals in its home turf of New England. Courthouse Green was Jones Street’s first acquisition in Virginia.
“We like the growth story of Richmond,” Ranalli said. “We like the population growth, and the employment growth is a key factor to our interest in the market.”
Ranalli said Courthouse Green is about 94 percent occupied and that the typical unit rents at around $1,500 per month. He said Jones Street is planning to renovate some units and common areas over time.
Prior to the era of rising interest rates, investors had been regularly trading multifamily complexes throughout the Richmond region, with deals in Chesterfield breaking and nearing the nine-figure mark. The challenges brought on by higher interest rates have softened the market – Jones Street’s is the largest multifamily deal in Chesterfield this year, according to county records.
Ranalli said the firm finances its deals with traditional Freddie Mac and Fannie Mae loans, and that while transactions are trickier these days, if a property meets its criteria, the firm is comfortable moving forward with it.
“We want to buy communities where there’s growth and that are desirable places to live, and so (Courthouse Green) is that. We feel that there’s a level of comfort in investing in such communities,” Ranalli said.
The apartment complex in southeastern Chesterfield sold for nearly $18 million more than it did in 2020. (Mike Platania photo)
A Chesterfield apartment complex’s streak of changing hands every three years continues, with one of the larger real estate deals recorded in the county this year.
The Courthouse Green Townhomes at 6417 Statute St. near the county government center sold late last month for $50.9 million.
Jones Street Investment Partners, a Boston-based firm, was the buyer, making it the fourth company to own the 266-unit, market-rate complex since 2014.
Jones Street bought the property on Sept. 29 from a joint venture between local firm McCann Realty Partners and Philadelphia-based LEM Capital. That group bought Courthouse Green in 2020 for $33 million from Maryland firm RailField Realty partners, which had paid $25 million for it in 2017.
Three years before RailField’s deal, the apartments were sold in 2014 to a division of Canadian conglomerate Brookfield Corp. for $23 million.
Sitting on 21 acres southeast of the Chesterfield County Airport, Courthouse Green spans 34 buildings that were built 50 years ago. The complex was most recently assessed by the county at $31.6 million, and the latest per-door sales price clocked in at $191,000.
Founded in 2014, Jones Street is privately held and exclusively invests in, develops and manages multifamily properties. The firm counts about 6,000 units in its portfolio, and Jones Street co-founder Matt Ranalli said the group primarily does deals in its home turf of New England. Courthouse Green was Jones Street’s first acquisition in Virginia.
“We like the growth story of Richmond,” Ranalli said. “We like the population growth, and the employment growth is a key factor to our interest in the market.”
Ranalli said Courthouse Green is about 94 percent occupied and that the typical unit rents at around $1,500 per month. He said Jones Street is planning to renovate some units and common areas over time.
Prior to the era of rising interest rates, investors had been regularly trading multifamily complexes throughout the Richmond region, with deals in Chesterfield breaking and nearing the nine-figure mark. The challenges brought on by higher interest rates have softened the market – Jones Street’s is the largest multifamily deal in Chesterfield this year, according to county records.
Ranalli said the firm finances its deals with traditional Freddie Mac and Fannie Mae loans, and that while transactions are trickier these days, if a property meets its criteria, the firm is comfortable moving forward with it.
“We want to buy communities where there’s growth and that are desirable places to live, and so (Courthouse Green) is that. We feel that there’s a level of comfort in investing in such communities,” Ranalli said.
Congrats to Wink Ewing of NorthMarq for brokering the deal, as I suspect he’s been involved in all four trades. Rent growth has supplanted suppressed cap rates as the driving force in sales of these types this year. The scarcity of affordable housing and high demand for good investments is still intact.
Congrats to McCann Realty Partners, and its partner for reaping the rewards of the sale!