Hamilton Zanze Acquires 414-Unit Rental Townhome Community in Virginia Beach Market

VIRGINIA BEACH, VA - San Francisco-based real estate investment firm Hamilton Zanze (HZ) has acquired the 414-unit Maple Bay Townhomes in Virginia Beach, VA. The purchase closed on January 25th and property management responsibilities have been transferred to Mission Rock Residential.

The community was built in 1971 and is located in close proximity to Interstate 264 and the Virginia Beach Expressway, providing immediate access to retail, entertainment, and employment opportunities. The community offers a mix of large one, two, and three-bedroom units, ranging from 1,000 to 1,400 square feet. Each unit is two-stories and includes garage space and private a backyard or patio area. 

"We are actively looking to grow our presence in the Virginia Beach metro, and Maple Bay presented an opportunity to buy a well-located asset with 1,200 square foot average units," said David Nelson, Hamilton Zanze's senior director of acquisitions. "Due to high home prices in the area, we believe large townhome rental units will serve an underserved demographic." 

Units feature air conditioning, new lighting fixtures, black appliances, and updated kitchen cabinets. HZ plans to update units with the new granite countertops, faux wood flooring, and tile backsplashes, and add washers and dryers to select units. 

Community amenities include a clubhouse, fitness center, swimming pool, dog park, playground, carwash station, and digital package concierge service. Plans for upgraded community amenities include fresh landscaping and pool grounds, and interior clubhouse updates.

The market's high median home value of $260,840 creates a tailwind for strong apartment demand in the Virginia Beach East submarket. The submarket recorded zero new supply in Q1 2019, with no new supply forecasted for 2019. Metro-wide occupancy is solid at 95.4%. 

The region's median income is 6% higher than the U.S. average. The market is bolstered by diverse employment opportunities in nearby Norfolk, which is home to thriving shipping, military, data, and financial management industries.