Colonial Towne, a 148-unit apartment community in Williamsburg, Virginia. Photo: Bonaventure / GlobeNewswire; resized.
Bonaventure Multifamily Income Trust has acquired an interest in Colonial Towne, a 148-unit apartment community in Williamsburg, Virginia, completing a property exchange and adding a neighboring asset to its local portfolio.
The acquisition puts Colonial Towne directly across the street from the trust’s Parkway Apartments. Together, the two properties have 296 units, allowing the owner to share on-site staff, maintenance and vendor contracts, Bonaventure said in its November 11 announcement.
The company did not disclose a purchase price or financing terms in the announcement.
Exchange proceeds return to Virginia apartments
The trust acquired its Colonial Towne interest through a 1031 exchange using remaining proceeds from the sale of Promenade Pointe. It had already purchased Royal Pointe Apartments in Virginia Beach as the first replacement property in that exchange, according to the company.
Rather than adding a property in a new market, the purchase increases the trust’s holdings in an area where Bonaventure already operates. Colonial Towne is also about three miles from Attain at Quarterpath, a 228-unit community Bonaventure completed in 2015 that is now owned by the trust.
With the acquisition, Bonaventure’s Williamsburg portfolio totals 524 apartments across three communities.
Neighboring properties offer operating scale
Colonial Towne, at 327 Merrimac Trail, has one-, two- and three-bedroom homes in two-story buildings. The property includes direct-entry townhomes as well as garden-style apartments.
Its amenities include a pool, playground, laundry facilities and additional storage. The location has access to Interstate 64 and is near employers including Colonial Williamsburg and William & Mary.
For the owner, the immediate operational link is Parkway Apartments across the street. Sharing personnel and service contracts gives the acquisition an operating rationale beyond simply increasing the portfolio’s unit count. The announcement did not quantify any expected cost savings, rent changes or capital spending at Colonial Towne.
Bonaventure sponsors and manages the trust. The Alexandria-based firm invests in multifamily properties across the Mid-Atlantic, Southeast and selected Midwest markets. The Colonial Towne announcement is a completed acquisition, not a proposal for new construction.
Source: Bonaventure Multifamily Income Trust
JBizNews Desk | New York
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