ROANOKE, VA - Four Mile Capital, a privately-held real estate investment firm based in Louisville, CO, has acquired a 234-unit multifamily portfolio consisting of the Northridge Village and Salem View Apartments in Roanoke, VA. Northridge Village, built in 1972, has 174 units and 192,786sf and Salem View, built in 1974, has 60 units and 48,400sf. Greenbrier Management, based in Newport News, VA, has been awarded the management contract.
The transaction closed for a price of $13,850,000, or $59,188 per unit, and FMC intends to spend about $1,400,000, or $6,000/unit, on additional cosmetic improvements to the units, clubhouse and pool area. The new owner took out two (2) separate 73% LTV Fannie Mae fixed-rate mortgages at 4.51% as part of their acquisition.
“We are excited to build on our existing Virginia portfolio,” said Eric Mallon, one of FMC’s principals. “Roanoke is a stable market with strong fundamentals, and these properties fit perfectly within our growth strategy of acquiring value-add workforce housing in select secondary and tertiary markets. What’s more, our going-in basis allows us to generate attractive yields for our investors that we can’t find many other places.” FMC now owns about 550 units in Virginia and is actively pursuing other opportunities there.
Northridge Village and Salem View are located 2 miles from one another, 6 miles to downtown Roanoke, and 5 miles from another Roanoke property that FMC owns locally, the Frontier Apartments. “Working with Greenbrier in Virginia over the past 18 months has allowed us to refine our systems and staffing, and we have the utmost confidence in our on-site team’s ability to execute on our business plan. We feel fortunate to have aligned with such a strong operating partner in Greenbrier,” said Chris Geer, another FMC principal.
Four Mile Capital continues to pursue additional investment opportunities throughout the U.S, with a specific focus on Colorado, Virginia, Atlanta, Iowa, Wisconsin and Salt Lake City. They employ an opportunistic strategy in acquiring off-market properties that fall below the radar of its institutional peers, targeting investments with a total capitalization between $20MM and $100MM, and between $5MM and $35MM of equity.