Home News Sale price for Chesterfield apartment complex nearly doubled in five years

Sale price for Chesterfield apartment complex nearly doubled in five years

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The apartment has been on the corner of Hull Street Road and Commonwealth Center Parkway since 1986. ((Mike Platania Photo).

Recent housing deals in Chesterfield County depict how hot the region’s housing market has been in just a few years.

In 2017, the 320-unit Hunters Chase Complex sold for $ 42 million. At the end of last month, it sold again, this time for $ 79.2 million.

The new owner is Capital Square, a Henrico-based company that is particularly busy in the Richmond condominium market. The company has spent more than $ 391 million on apartments over the last two years. Record $ 111 million purchase Of an apartment in West Broad Village.

The purchase price per door for Hunter’s Chase is 320 units for $ 247,500. The 13-building complex is located on 25 acres just southwest of Hull Street Road and the Route 288 interchange.

Whit Huffman

Whit Huffman, Chief Investment Officer at Capital Square, said the sharp rise in apartment prices was caused by, among other factors, the compression of cap rates.

“I think the cap rate is roughly compressed in the South Central and Southeast. It will increase the value of assets, and the profitability of this equation has grown dramatically over the last few years. I think it’s driven by rising rents, “Huffman said. “Also, if the property is refurbished and the refurbished unit is charged a premium, you will get a big lift.”

The latter was involved in the Hunter’s Chase deal, as seller Hamilton Zanze of San Francisco invested about $ 7 million in the renovation of an apartment 36 years ago, Huffman said. Since purchasing in 2017..

Hamilton Zanze is feeling like a hot seller in Richmond this spring. Just a week before the Hunter’s Chase deal was signed, Hamilton Zanze sold a 192-unit Copper Mill Apartment in the 3400 Copper Mill Trace in western Henrico to Utah-based North Rockkos for $ 50.2 million. .. Hamilton Zanze has acquired Coppermill Apartments. $ 33 million in 2018..

According to Huffman, Hunter’s Chase accounted for 95% when the deal closed on May 27. Newmark’s Robert Galish represented Hamilton Zanze in the deal.

A combination of 1, 2, and 3 bedroom units ranging from 650 to 1,100 square feet constitutes the Hunter’s Chase. Huffman said he plans to rent for $ 1.33 per square foot, or $ 864 to $ 1,463 per month.

Apartment facilities include a pool, fitness center and clubhouse. ((((Courtesy of Capital Square).

According to Huffman, Capital Square tracks tenants’ hometowns, especially for new apartments. In addition to new entrants in the country such as Virginia Beach, Washington DC, Boston, California and New York, Richmond has also caught the eye of overseas lessors, Huffman said.

“A very significant percentage of our development contract applications come from out-of-town lessors,” Huffman said. “We were also interested in foreigners. People have moved from London to France.”

Hunter’s Chase is the latest acquisition of Capital Square, which also plans and builds several multipurpose buildings. Scotts Addition..There was also a proposal during the implementation of the city’s Diamond District redevelopment project, but the team Missed the latest cut last month.

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