Capital Square, a local real estate investor and developer, is the first to enter the hospitality business while continuing to trade expensive apartments.
Last week, the company bought a 350-unit condominium, The Trails at Short Pump, for $ 89.2 million. Meanwhile, in South Carolina, an Insbrook-based company has embarked on its first hotel project.
Twenty-three short pump trails are located in 3900 Acadia Lane. The complex is just east of West Broad Village, where Capital Square is located. Planning to build a new headquarters.. The company also owns a flat in West Broad Village, an apartment complex purchased last year. Record $ 111 million..
Trails transactions are worth $ 255,000 per door. This is not far from the price paid by Capital Square last month. I bought a Hunter’s Chase apartment $ 79 million in Chesterfield.
The short pump trail was recently valued at $ 58.1 million by Henrico County. It is over 98% occupied.
The seller of the contract was Angelo Gordon, a New York-based company. Picked up an apartment in 2019 For $ 63 million.
Angelo Gordon too Recently offloaded 664 units of The Acclaim at Carriage Hill Henrico’s Senior Living Apartment to another New York company for $ 138 million.
Will Mathews and Tommy Leachman of Colliers International represented Angelo Gordon in the Trails deal.
The 33-year-old Trails Complex is a bit older than Capital Square. Capital Square is known for acquiring new complexes and building their own from scratch. Scotts Addition..
The company’s chief investment officer, Whit Huffman, said the company and its investors want the opportunity to invest in both new and so-called value-added apartments.
“By leveraging our in-house development and acquisition teams to devise strategies to refurbish the unit’s interior and enhance amenities, we can charge more rent and increase asset value,” Huffman said. Mr. says. “Our investors generally prefer exposure to both (class A and value-added properties).
Huffman said he plans to refurbish everything from the trails’ unit floors and appliances to countertops and bathrooms. The unit is currently rented for about $ 1,400 a month, or $ 1.60 per square foot, according to Huffman, and it’s too early to estimate what the final result will be.
Capital Square currently has 51 properties and a portfolio of 13,110 units, of which 3,333 units are located in the Richmond region.
A few days after closing the apartment, Capital Square began construction on a five-story luxury long-stay roost hotel at 529 King St. in downtown Charleston, South Carolina.
The project is undertaken in collaboration with Method Residential, a company specializing in the development and operation of “apartment hotels”, and units can be rented for several nights, weeks or months. The Charleston Hotel joins the spot in Philadelphia, home of Detroit, Cleveland, Tampa and Method, making it the sixth Roost brand.
Each of the hotel’s 50 guest rooms has a kitchen and a cabinet with cutlery and tableware. Other amenities include a coworking room, a gym, a rooftop restaurant and a bar.
Huffman said the project is a good gateway to the hospitality industry at Capital Square.
“We weren’t hospitality investors. We were always apartment investors. This really bridges the gap between hotels and apartments,” he said.
According to Huffman, the concept is aimed at temporary employees who come to work within a year but don’t want to live in a traditional hotel room all the time.
He added that this concept probably has a future for Richmond.
“I could definitely see this working in Richmond. We have focused on what else we can bring to Richmond,” Huffman said. “I think platforms like Roost are incredibly useful, especially in cities where Richmond has meaningful medical employment.”