COLUMBUS, OH - Core Real Estate Capital has acquired multifamily apartment communities in suburban Chicago, Illinois and Virginia Beach, Virginia. Both transactions leverage experienced JV operating partners who have been effective in repositioning properties in their respective markets to reduce expenses while increasing occupancy, rental rate levels and net operating income.
In partnership with the Bainbridge Companies, Core acquired Woodshire Apartments, a 288-unit community in Virginia Beach, Virginia. The Woodshire acquisition presents an opportunity for Core to partner with Bainbridge, whose portfolio includes more than 16,000 units along the East Coast—nearly 6,000 of which are located in Virginia.
Jeff Coopersmith, Founder and Managing Partner of Core Real Estate Capital, states, “We are pleased to be able to add to our growing apartment portfolio along the East Coast. Woodshire’s central location and close proximity to the Virginia Beach Town Center make it an excellent opportunity to upgrade the property. With more than $2 million of renovations planned, we expect to provide a high-quality, yet affordable option to renters in the Hampton Roads area.”
Originally built in 1975, Woodshire Apartments is a well-maintained garden-style complex that is centrally located within one mile of the Virginia Beach Town Center and provides easy access to dining, shopping, entertainment venues and the oceanfront. Core and Bainbridge plan to execute a strategy that will address capital needs as well as provide enhancements to the property. A scarcity of land in the Virginia Beach region, along with a high cost of new construction allows this acquisition to be consistent with Core’s philosophy to acquire—alongside best-in-class operators such as Bainbridge—multifamily housing assets that have unrealized value potential.
Richard Schechter, Chairman & CEO of Bainbridge Companies, comments, “We are happy to add Woodshire to our portfolio in the growing Hampton Roads region of Virginia. The area represents solid growth in rent and occupancy potential and we will be able to leverage our considerable experience to drive operational and managerial efficiencies to enhance the value of this property.”
Alongside APM Management, Core has acquired Mt. Prospect Greens, a 344-unit community in the Chicago suburb of Mount Prospect, IL. Situated in one of the most stable multifamily markets and one of the most diverse economies in the US, Mt. Prospect Greens supports a highly regarded public school system and is located within a low-crime area.
This is the third joint venture partnership between Core and Apollo, who—notably— operate four other properties within walking distance of Mt. Prospect Greens. By institutionalizing the ownership and management of Mt. Prospect Greens, Core and Apollo will create value through unit upgrades, amenity and common area improvements, rental increases and controllable expense reductions that will be in line with the local market.
Ben Horn, Partner and Director of Acquisitions at Core Real Estate Capital, notes “Mt. Prospect is one of several cities on our radar targeted for continued investment as it has shown great resilience during recessionary periods as well as participated in the upside during periods of economic growth. Our partner, APM, has a strong track record of repositioning and stabilizing mismanaged properties in the Mt Prospect submarket and other markets throughout the Midwest. The combination of an experienced partner and a strong market provides us with the confidence that we can continue to achieve strong risk adjusted returns on the acquisitions we make together.”
Conveniently located to many Chicago destinations, Mt. Prospect Greens is situated on a spacious 20+-acre parcel in a densely populated and high barrier to entry area. Strong employment in the market, coupled with scarce new apartment supply, has supported a stable and steady local multifamily housing sector.
APM Management President, Paul E. Kiebler IV adds, “Similar to our other properties in the area, a meaningful repositioning opportunity exists at Mt. Prospect Greens through unit upgrades and other site improvements. We’re glad to again be partnering with Core in a market that we consider to be very strong in long-term fundamentals.”