Bonaventure, a multifamily investment company, has successfully closed two financing transactions, generating a total of US$54.2 million for two Class A residential properties in the US state of Virginia. The financing was realised through two Delaware Statutory Trust (DST) offerings, with a total of 86 investors committing equity. DSTs represent an investment structure that allows multiple investors to own fractional interests via a trust, rather than acquiring a property directly.
The first property, Messenger Place in the heart of Downtown Manassas, Virginia, was acquired by Bonaventure in 2021 for US$25.5 million, two years after its completion. This residential complex, comprising 94 units, has an occupancy rate of 95.7 per cent and raised US$34.1 million from 41 investors.
The second property, Promenade Pointe, was developed by Bonaventure in 2013 approximately four miles north of Downtown Norfolk. This waterfront community includes 183 units, is 94 per cent occupied, and received US$20.1 million in equity from 45 investors.
Investment Strategy and Market Positioning
Casey MacMaster, Senior Vice President at Bonaventure, explained that different investors require different avenues, and the appropriate structure depends on where someone is in their life and portfolio. Some investors might complete a 1031 exchange, while others seek diversification or a step towards long-term ownership.
Bonaventure, based in Alexandria, Virginia, currently manages assets worth over US$2.9 billion. Earlier this year, CEO and Founder Dwight Dunton had a discussion with the Commercial Observer to outline his company's business strategies and its unique selling propositions compared to other multifamily owners and operators.
Features of the Successful Projects
- —Messenger Place: 94 units, 95.7% occupancy, US$34.1 million equity from 41 investors.
- —Promenade Pointe: 183 units, 94% occupancy, US$20.1 million equity from 45 investors.
