Kushner Cos. has acquired a three-property multifamily portfolio in the thriving Richmond and Newport News, Virginia, markets from Drucker + Falk and LEM Capital for $113 million. Colliers International facilitated the purchase, which includes 710 units.
Built in the late 1980s, the portfolio includes the 190-unit Wilde Lake Apartments in Henrico, the 200-unit Chesapeake Bay Apartments in Newport News, and the 220-unit Hanover Crossing in Mechanicsville.
In a recent ranking by Mynd Management, Richmond topped the list of the 20 healthiest rental housing markets in the U.S., based on the firm’s analysis of occupancy rate growth nationwide over the course of one year—from the second quarter of 2019 to the second quarter of 2020
“This was a great opportunity to leverage DF Multifamily’s management and renovation expertise. We are very proud to have delivered extraordinary returns to our investors,” said J. Guy Buck, CFO of Drucker + Falk. “[Drucker + Falk business unit] DF Ventures, along with a partner, acquired the properties in May of 2016 for $68.5 million and implemented a $10.5 million renovation plan across the three properties, which combined with stellar property management, resulted in an average return on investment exceeding 30% annually.”
Erick Skow, director of DF Ventures, added that the firm is pleased with its value-add plan for the communities. “Renovating each community’s clubhouse and upgrading amenities has resulted in higher leasing traffic, and renovating unit interiors, curing deferred maintenance, and enhancing exteriors has vastly improved curb appeal.”
Senior vice president Charles Wentworth, senior vice president G.S. (Hank) Hankins, managing director Will Mathews, first vice president Victoria Pickett, and associates Garrison Gore and Clay Ellis with the Colliers National Multifamily Advisory Group represented the seller.
