Magnolia Green apartments fetch $72 million

Glenmoor Oaks apartments sold for $72 million. (Photos courtesy of Glenmoor Oaks website)

Two months after completing its latest local acquisition, a Utah real estate company has added to its holdings in the Richmond area with the purchase of a newly built apartment complex in the Moseley area of ​​Chesterfield.

North Rock Cos. bought the 248 Glenmoor Oaks apartments in Magnolia Green in a deal struck late last month.

The 2-year-old complex was sold on July 28 for $72 million, according to Shane Burnette, who was part of the development group behind the apartments. The transaction, which is worth about $290,000 per unit, was not reflected in the county’s online property records as of Tuesday.

Apartments include one, two and three bedroom units.

The selling entity was an LLC run by Burnette and Nick Wexler, a managing partner of homebuilder Schell Brothers. Burnette is a former president of the Richmond division for the Delaware-based builder, whose corporate office is listed as the LLC’s address.

Burnette said the group planned to keep the property after completing it in mid-2020, but changed its mind in light of market developments which have doubled the property’s valuation this year.

Developed at a cost of $40 million, the eight-building, 21-acre property is currently valued by the county at $57.1 million. Last year, it was valued at about half that amount, or $28.4 million. The previous year, when the complex was completed in July 2020, it was valued at $14.7 million.

Shane Burnett

“As we were designing, building and setting direction to make a long-term hold, we believed the market was likely going through a semi-temporary dislocation,” Burnette said in an email. “Given the market was in this state of fluctuation – and fortunately we had an asset that benefited from this change in valuation – we felt the most prudent financial decision was to monetize it.”

Burnette added: “If Nick and I were sole owners of this we wouldn’t have sold, but as custodians of other people’s capital we thought it was the right move.”

The group enlisted Carter Wood and Drew White with Berkadia, who listed the property and brokered the deal. The pair also worked on the seller’s side in NorthRock’s purchase of the 221-unit Innslake Place Apartments, a newer complex in Innsbrook that it bought in December for $63 million.

NorthRock entered the local market in 2019 with its $67 million purchase of the 296 Belvedere apartments in Midlothian. His other Richmond-area holdings include Copper Mill, a 192-unit complex in west Henrico that he bought in May for $50.2 million.

Glenmoor Oaks, at 18101 Golden Bear Trace, consists of eight four-story buildings with apartments ranging from one to three bedrooms and approximately 600 to 1,200 square feet. Burnette said the apartments were rented out within a year and were 95% occupied when the transaction closed.

Pegasus Residential manages the property for NorthRock. Burnette said he recently raised apartment rents, which, according to availability Tuesday on the Glenmoor Oaks website, range from around $1,500 for a one-bedroom unit to $2,300 for a three-bedroom unit. bedrooms.

The eight-building complex occupies 21 acres in Magnolia Green.

The complex includes a clubhouse, rental office, swimming pool, grilling area, fitness center, yoga studio and internet cafe. Construction began in the spring of 2019. Branch Builds was the builder and Poole & Poole was the architect.

Meanwhile, Burnette and Wexler’s development group is completing work on The Station at Chester Village, a near-complete 201-unit complex off Chester Road, just north of Route 10. The property is currently in pre-lease, and Burnette said the first of five buildings will be open to residents before Labor Day.

About Gene Schafer

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