Arlington-based real estate investors set sight on Hampton Roads’ market
Despite the crazy market conditions, one northern Virginia real estate investment company continues to find interesting opportunities in the Hampton Roads market.
Blackfin Real Estate Investors, based in Arlington, has been expanding its portfolio with the acquisition of several apartment communities in the area.
Founded five years ago by Doug Root and Andrew Buchanan, the company is set to have close to 7,000 units from Boston into the Carolinas, as several more acquisitions are in the works.
“We are super busy and have been expanding the team quite a bit,” said Root of the 42 employees currently onboard. “If all goes well we will be on track to close seven more deals by early Q2.”
In March 2019, Blackfin acquired Baker Crossing Apartments, with 600 units, in Virginia Beach and renamed it Coastline.
In November 2019, Blackfin acquired The Myrtles at Old Towne Apartments I & II, with 394 units, in Portsmouth.
A year later, in November 2020, Blackfin acquired Westover Station Apartments, with 108 units, in Newport News.
And in February, the company, along with GMF Capital LLC closed on Pepperwood Townhomes, with 155 units, and Towne Point Landing Apartments, with 193 units. Those acquisitions, both in Portsmouth, totaled $35.5 million.
Root said they will do interior renovations and cosmetic upgrades to the communities’ amenities and exteriors.
Buchanan said in a news release that the cities of Portsmouth and Suffolk continue to grow and produce steady results despite COVID-19.
“The limited supply of quality affordable housing options has driven regional occupancies to record highs,” Buchanan stated.
Amazon’s growth in the area, with its logistical hubs in Suffolk and Chesapeake, is a factor for the improving market conditions Buchanan said.
Root said it’s a combination of the growth, a stable job market and the lack of new supply that has led them to invest in the Hampton Roads’ market.
“They’ve held up fairly well through COVID relative to other markets,” Root said. “We’ve seen good consistent growth and stability from it.”
In March 2021, Blackfin and GMF Capital embarked on another joint venture with the purchase of three low-income housing tax credit communities in the state.
The acquisition totaled $48 million and encompassed 452 units.
The communities are: Crescent Place (156 units) and Independence Square (152 units) in Portsmouth and Oaks of Dunlop Farms in Richmond (144 units).
“We have found that LIHTC communities have generally held up better than other multifamily product types during the global pandemic,” Root said. “This acquisition will help us diversify our portfolio and it will give us a chance to take advantage of the strong growth that we anticipate for these regions.”
Sandra J. Pennecke, 757-652-5836, sandra.pennecke@insidebiz.com
