Levco expands Hampton Roads holdings
A Richmond real estate investment firm has expanded further into the Hampton Roads market with its latest acquisition.
Levco Management this month completed the $18.275 million acquisition of the Heritage at Settlers Landing apartment community at 553 Settlers Landing Road in Hampton. Built in 2007, the property comprises three four-story buildings. The sellers in the deal were Collins Enterprises LLC and Drucker & Falk.
Levco also owns St. Croix Apartments in Virginia Beach, which recently underwent a $2.5 million renovation. The firm owns eight multifamily properties in Richmond. Levco also has an affiliated construction company called Levco Construction.
Jared Levin, Levco’s managing partner, says his firm financed the deal through a combination of equity and debt. Levco was drawn to Heritage at Settlers Landing by its curb appeal and floor plans, he says. The property is in downtown Hampton, which has a vibrant waterfront with a mix of restaurants and shops.
Levco’s core strategy is acquiring existing apartment communities when the firm sees an opportunity to make upgrades and reposition the properties to better compete in the local market, Levin says.
“We see a tremendous amount of demand for apartments which have rents that are lower than the brand-new luxury properties but are still well-operated, -maintained and have modern finishes and amenities,” he says. “Our goal is to acquire three to four multifamily communities per year with similar business plans as Heritage.”
Levco plans interior upgrades to help Heritage at Settler’s Landing. Planned renovations include new stainless-steel appliances, washers/dryers, flooring, light fixtures, cabinet hardware, faucets and granite countertops in select units.
The 140-unit development has one-, two- and three-bedroom units with monthly rents ranging from $925 to $1,750. Levin says the property is 95% leased.
Levin says the Hampton Roads market has lagged in recovering from the recession when compared with other markets.
“Around three years ago we noticed a positive shift in apartment market fundamentals in this region and began targeting acquisitions in the Hampton Roads area,” Levin says. “The apartment market in Hampton Roads seems to respond quite favorably to pro-active management and upgrading properties.”
Representing the sellers in the deal were Colliers International brokers George “Hank” Hankins, senior vice president; Will Mathews, managing director; Charles Wentworth, senior vice president; Rawles Wilcox, senior vice president; Victoria Pickett, vice president; and Clay Ellis, associate, with the Colliers Mid-Atlantic Team.
The Heritage at Settlers Landing had been on the market for about five or six weeks before it sold, says Hankins.
The Hampton Roads multifamily market has seen rising rents from year to year and solid occupancy. A lack of new construction has helped stabilize existing inventory and Hankins expects more multifamily deals to close in the months to come.