ATLANTA, GA – Middleburg, a Virginia-based investment, development and management firm, has closed Middleburg Workforce Housing Fund with the $91 million acquisition of three apartment communities in Atlanta, GA. 

The properties include: The Grove (Vesta Red Oak) a 220-unit community, currently vacant, at 5100 Welcome All Road; Park at Bouldercrest (Vesta Bouldercrest), a 438-unit community, currently vacant, at 26 Bouldercrest Lane, SE; Majestic Park (Vesta Adams Park), a 298-unit community, approximately 15% occupied, at 1991 Delowe Drive, SW. 

Middleburg will do a strategy at each property that includes a substantial renovation of the physical assets to greatly improve housing quality with an emphasis on maximizing energy efficiency to preserve affordability and lower total housing cost for our residents. In addition, Middleburg will provide responsive community programs to its residents and engage the local community through job fairs, after school programs, and continuing education for adults.

“Vacant properties in disrepair are magnets for crime and unsafe for the few residents really living there,” said Middleburg Managing Partner, Chris Finlay. “Our holistic approach will transform these properties and also the surrounding communities. Middleburg is uniquely capable, with fully integrated development, construction and management operations, to bring these communities to life as fundamentally new assets; not just preserving but adding to the inventory of workforce housing available to the many people desperately seeking homes they can afford.” 

The Fund, announced in January 2019, was launched with the contribution of a previously bought property, Vesta Derby Oaks, in Louisville, KY. Including debt, the Fund deployed approximately $120.0 million in the four properties, and will now focus on executing the respective strategies including full renovations. Middleburg has partnered with KeyBank Real Estate Capital Community Development Lending and Investment (CDLI) and Capital Bank for construction financing of the Atlanta portfolio.

“CDLI and Capital Bank mirror our interest in investments that provide safe, secure and affordable rental housing and provides cost effective capital to promote this initiative,” stated Kory Geans, Chief Investment Officer for Middleburg. 

“KeyBank is proud of our continued partnership with Middleburg to deliver quality, innovative and affordable rental housing to communities,” said Tiffany Durr, a senior relationship manager with CDLI. “KeyBank’s full service financing platform and collaboration with Middleburg and Capital Bank allowed us to make a customized financing solution for the acquisition and renovation of these properties.”

“One of our key priorities is to foster economic development and strengthen the communities we serve,” said Rick Manley, Mid-Atlantic market president of Capital Bank. “Last year, our company announced our Community Benefits Plot that commits nearly $4 billion to broaden access to financial resources across our footprint. This strategic partnership with Middleburg aligns with our efforts to strengthen our underserved communities by providing access to affordable housing.” 

Middleburg, utilizing internal research and asset management teams, will carefully track and measure the success of the redeveloped properties, looking at data before and after renovation to continuously adjust its programs and report back to its investors. The four critical areas of focus from a reporting standpoint are: Affordability, Housing Quality, Environment, and Community Engagement.  

Given the tremendous demand that exists for workforce housing, Middleburg has initiated conversations with social impact focused institutions and accredited investors to participate in the company’s next community impact fund, Middleburg Community Impact Fund II, in order to continue restoring, transforming and preserving critical workforce housing and their surrounding communities throughout the Southeast U.S.

“Middleburg is thrilled with the strong interest in our initial Workforce Housing Fund from family offices and social impact-minded investors,” said Alonso Garza,Head of Funds Management. “Our reputation as a meticulous asset manager with top notch operational teams has supported the launch of this new direction that takes our longtime interest in the transformation of workforce housing and their respective communities to a higher level.”

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ALAMENDA, CA – Calvera Partners, a real estate investment firm, has bought 430 & 450 Buena Vista Avenue, a 52-unit apartment building in Alameda, CA, for $15.95 million. The final acquisition for their current discretionary investment fund, the buy is part of the firm’s ongoing commitment to the repositioning of vintage multifamily properties in the Bay Area. 

The three-tale building, constructed in 1964, will be rebranded with new signage, refreshed landscaping and common areas, and will include comprehensive upgrades to individual units. The property renovation will also address deferred maintenance issues and structural improvements.

“This property represents an brilliant fit with our investment strategy,” said Calvera Managing Principal Brian Chuck. “Our goal is to identify well-located properties with untapped value that can be realized via our creative repositioning and disciplined management.”

Alameda is a family-friendly community known for its recreational beaches and proximity to major employment centers. The property is close to downtown Oakland (2.5 miles) and San Francisco (20-minute ferry ride) and offers convenient access to other East Bay cities via Interstate 880 and BART, both of which are within a few miles of the property. Moreover, the property is within walking distance of one of Alameda’s main thoroughfares with neighborhood restaurants and retail. In addition, the immediate neighborhood has seen significant institutional apartment investment in the last 18 months. It is also near the 1,500-acre Alameda Point Development, one of the largest development projects in the Bay Area, which includes 673 housing units, funding for a new ferry terminal, and 93,000 square feet of retail. 

Chuck added, “Physically the building is in excellent condition for its age, and will allow the Calvera team to focus on their signature approach to a boutique hotel design aesthetic and branding.” 

Past projects for the real estate investment company have included The Stacks, located near San Jose State and FIT Apartments in Minneapolis, MN.

“As with all of our acquisitions, we feel like we can place our creative stamp on the building and renovate units as they turn over to realize the right value of the property,” said Chuck. The Alameda property is the real estate investment firm’s 12th acquisition in CA. 

With the current fund now fully invested, a new fund, The Multifamily Transformation Fund, is scheduled to launch later this year.

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COLTON, CA – San Diego-based Tower 16 Capital Partners has bought The District at Grand Terrace, a 352-unit multifamily project in Colton, California, for $63,050,000. The project was bought on an off-market basis from FPA Multifamily. 

Tower 16 will be overseeing $4 million in renovations and upgrades to the project including new outdoor amenities, an upgraded leasing office and interior renovations.

“The District at Grand Terrace fits very well with our investment strategy of purchasing assets below replacement cost in excellent locations with strong demand drivers,” said Tower 16 Tyler Pruett, principal.

This is the firm’s sixth acquisition in the last 12 months having bought over 2,000 units in that timeframe and its second buy in Southern California’s Inland Empire region.  

Mike Farley, principal, continued, “We are firm believers in the Inland Empire market given the strong job growth, limited new supply and overall occupancy projections for workforce housing.”

The District at Grand Terrace is located at 1315 S Meadow Lane Colton, within five miles of downtown Riverside and Loma Linda/Redlands. Colton is a strong submarket with average incomes of $66,000. The apartment complex is located near the I-215 freeway and is four miles from the Loma Linda University Medical Center.

The District at Grand Terrace features one-, two- and three-bedroom apartments with covered parking and private balconies or patios, four pools, a fitness center, two laundry facilities, two playgrounds and a leasing office.

Alliance Residential, a national multifamily real estate management firm, will take over as property manager. Tyler Martin, Alex Garcia and Chris Zorbas of Institutional Property Advisors represented both the buyer and seller in the transaction. Scott Peterson and Bill Chiles with CBRE’s Capital Markets team in San Diego handled placement of the financing on behalf of Tower 16.

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