RICHMOND, VA-Onyx Partners LLC, a New York and New Jersey based real estate investment group, has acquired a $16.2-million multifamily property here from local firm, Medalist Properties. The class B complex is comprised of a mix of one-, two- and three-unit garden apartments and is 94% occupied. Morgan Stanley provided the financing.
Located at 705 Pool Rd., the 229-unit community, called Sunrise Apartments, is located in northern Chesterfield County, off Midlothian Turnpike.
The transaction is Onyx's first acquisition in the Richmond area, and its first acquisition as part of a larger strategy to expand in the Mid-Atlantic and to a certain extent, in the Northeast as well, Michael Baumann, vice president of acquisitions tells GlobeSt.com. Most of the firm's holdings are centered in the tri-state area.
The company has formed a $100-million equity fund that will be leveraged to acquire between $700 million and $800 million in the area, Baumann says. It is focusing specifically on class A and class B multifamily properties and portfolios of these assets.
While Onyx has a strong office portfolio, he says, the timing is good for the multifamily asset class right now. "With the slowdown in the housing boom there will be a lot more renters," he explains. Also, the fundamentals are strong in the region.
The focus on the Mid-Atlantic is part of a bigger picture for the firm, Baumann says. "We are looking to expand throughout the United States." This particular fund, though, is to be invested in the region.
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