Bonaventure Multifamily Income Trust (BMIT®) Completes 1031 Exchange and Acquires Property in Charlottesville, Va.
22 May 2024 - 4:41PM
Business Wire
Bonaventure, an integrated alternative asset manager focused on
the investment, development, construction and management of
innovative lifestyle multifamily communities in the Mid-Atlantic
and Southeastern regions, today announced the sale of a roughly $18
million interest in Attain Downtown, a 156-unit Class-A multifamily
community in downtown Norfolk, Va. and the acquisition of Cavalier
Crossing, a 144-unit apartment community in Charlottesville, Va.
The transactions were completed on behalf of Bonaventure
Multifamily Income Trust, Inc. (BMIT®) – its perpetual life
multifamily investment fund.
As part of the transaction, BMIT® will retain a majority stake
in Attain Downtown and continue to oversee its operations. The
company used the proceeds from the sale to acquire Cavalier
Crossing, a 144-unit garden-style apartment community in
Charlottesville, Va., through a tax efficient 1031 exchange. The
combined transaction is representative of one of Bonaventure’s
current investment tactics of extracting capital from stable core
assets and redeploying it into undervalued or mismanaged value add
opportunities with the potential for higher returns on a
risk-adjusted basis.
Specifically, Bonaventure sold fractional ownership of Attain
Downtown as a custom solution for an investor seeking to utilize
the 1031 exchange. The sale was structured as a Tenancy-in-Common
(TIC) transaction, which allows multiple investors to own undivided
interests in a single property and defer capital gains taxes
through a 1031 exchange.
“This transaction represents one of the many customized
solutions we can offer our clients to solve their 1031 exchange
needs, while also helping us grow strategic new partnerships,” said
Bonaventure CEO and Founder Dwight Dunton. “The 1031 transaction
type allows for all involved parties to benefit. BMIT® retained an
ownership stake in Attain Downtown and continues to manage the
property, and the new co-owner enjoys the potential for
risk-adjusted returns without having to actively manage the
property.”
Bonaventure’s private transaction partner added: “The
Bonaventure team was most helpful and professional in getting our
1031 with multiple Tenants in Common over the finish line as new
co-owners in a great apartment community. This was a complex and
tedious transaction and we could not have completed it without
their help and experience. We are looking forward to much
prosperity and profit in our growing business relationship.”
Attain Downtown, ideally located in the heart of Downtown
Norfolk, offers studio, one-, two-, and three-bedroom units with
luxury finishes, walk-in closets, stainless steel appliances and
energy-efficient designs. Amenities include a saltwater pool,
24-hour fitness center, gas grills, fire pits, and EV charging
stations. Its prime location provides residents with easy access to
dining and convenience options along Granby Street and proximity to
the Historic Freemason District.
Bonaventure used the proceeds from the fractional sale of Attain
Downtown to acquire Cavalier Crossing. Constructed in 2003 and
strategically located near the University of Virginia and a
Wegmans-anchored retail center, Cavalier Crossing will undergo a
comprehensive renovation to upgrade unit interiors, amenities, and
curb appeal. Bonaventure will enhance the existing amenity package
which already includes a swimming pool, fitness center, basketball
court, and volleyball court, to deliver an upscale community in a
market where demand significantly outpaces supply.
Dunton continued, “The acquisition of Cavalier Crossing aligns
perfectly with our current acquisition strategy of identifying
undervalued assets in growth markets that offer significant
potential for value creation. By leveraging our nearly 25 years of
success in multifamily development, we plan to reposition this
well-located property into a thriving multifamily community.”
The Charlottesville rental housing market is marked by high
occupancy rates and limited new supply in the development pipeline.
Charlottesville's vibrant economy, driven by its status as a hub
for education, healthcare, and technology, makes it an ideal
location for multifamily investment. The University of Virginia not
only contributes to a stable demand for housing but also anchors
the community with its medical center, the largest employer in the
area. This dual influence of UVA’s educational and healthcare
institutions further drives the demand for quality housing.
Cavalier Crossing is the latest addition to BMIT®’s 20-property
portfolio, which consists of high-quality multifamily properties in
strong markets across the Mid-Atlantic and Southeast regions. Since
its inception in 2021, BMIT® has acquired properties, many of which
have used custom-built 1031 or 721 exchange programs under the
Internal Revenue Code. Many of these solutions cater to investors
seeking stable cash flow from multifamily properties without direct
ownership and active management.
About BMIT®
BMIT® is a Bonaventure sponsored and managed perpetual life
multifamily fund designed to capitalize on the systematic housing
shortage and population migration to the Southeast. As a perpetual
fund, its investment tactics are constantly evolving to efficiently
deploy capital at any time within the real estate economic cycles.
BMIT® allows high net worth investors to participate in
institutional grade real estate by offering individuals the
opportunity to invest in a diversified pool of assets with
attractive risk-adjusted returns, stable cash flow, and tax
advantages. To date, the fund has 3,790 units and over $1B of gross
assets under management in its portfolio which has a weighted
average loan maturity of over 20 years. BMIT® also leverages
Bonaventure's expertise in design, development, construction, and
management to create value and enhance the resident experience.
About Bonaventure
Headquartered in Alexandria, Virginia, Bonaventure is an
integrated alternative asset management firm specializing in
multifamily design, development, construction, investment and
property management. Since its founding in 1999 by Dwight Dunton,
with the intent to create best-in-class capabilities connecting
capital to assets, the focus of the firm has been to generate
excess returns on a risk adjusted basis while building enduring
value through ingenuity. To learn more, visit
www.bonaventure.com.
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