NorthMarq brokers $27.25 million sale of The Gallery Midtown in Richmond, Virginia
RICHMOND, VIRGINIA (October 26, 2021) – NorthMarq’s Richmond investment sales team of Wink Ewing, managing director, Mike Marshall, managing director, Matt Straughan, associate, and Jared Alcorn, analyst, collaborated to arrange the $27.25 million sale of The Gallery Midtown. Richmond, Virginia-based Levco Management acquired the property from Utah based Peak Capital Partners.
The 157-unit/three-story class B+ multifamily property, located at 308 North Nansemond Street in Richmond, Virginia, was built in 1938 and was extensively renovated in by the previous seller, Spy Rock Real Estate Group. Peak Capital Partners, for whom NorthMarq arranged the sale, purchased the property in 2018.
“The Gallery Midtown was a compelling opportunity for our company to acquire an incredibly well-located and unique asset right in our own backyard. Over the next two years, we will be executing a property-wide renovation plan that will enhance the finishes and efficiency of the apartment interiors in addition to several other exterior, common area, and amenity upgrades targeted at improving the property’s curb appeal and overall experience for the residents,” said Jared Levin, managing partner of Levco Management.
Levco’s acquisition of The Gallery Midtown comes off the recent closing on its value-add focused multifamily fund, Levco Multifamily Fund I, LP. Levco has plans for $300-400 million of multifamily acquisitions and renovations through its fund and co-investment vehicles over the next two years.
The property benefits from a central downtown location in the Museum District within walking distance to Scotts Addition, Carytown and The Fan. Other conveniently located and walkable attractions include numerous museums, banks, grocery stores, shopping, dining and entertainment options. Along with its unique walkability, the property provides easy access to I-195, U.S. 250 and the Downtown Expressway.
”With such a great location and state-of-the-art redevelopment from 2017, The Gallery is truly a generational asset, as evidenced by the high-number of interested investors who emerged during the marketing period,” said Ewing. “The deal presented a unique challenge in that the buyer had to assume the existing debt due to very high defeasance costs. Levco was able to rise to the occasion after continued interest from when we sold it to Peak Capital Partners in 2018. They proved that they were the best candidate and performed flawlessly during due diligence.”
The sale of The Gallery Midtown is part of a trend of transaction activity accelerating through the first half of 2021. Second quarter properties sold was more than double the pace established in the first quarter, and third quarter will strong as well. NorthMarq’s Q2 Richmond Market Report noted that developers are slated to deliver approximately a dozen new apartment projects totaling more than 1,500 units by year end.
While the pace of construction is on pace to accelerate, renter demand or units is forecast to remain robust. Absorption outpaced supply growth in the first half of the year, and the pace of tenant move-ins is expected to closely track the number of new units that are added to the market in the continue to record healthy rent gains.
