J
ohn B. Levy & Co., a Henrico-based real estate firm, has acquired the Villas at Southern Ridge, a 240-unit "fractured" condo complex near UVA, for $11 million. The property, which sits about two miles southwest of the university, was sold by Frye Properties out of Norfolk and marks the first acquisition made by Levy & Co. since it secured $50 million in investor capital earlier this year.
The firm partnered with an unidentified insurance company to form a joint venture, with Levy & Co. taking the controlling stake and managing member role. This is the fifth deal the two sides have done together in recent years and the first using the allocated funds.
Bram Levy, head of acquisitions at John B. Levy & Co., said the firm has been searching for deals since securing the capital in the spring but found it challenging to find attractive opportunities. He noted that the Villas at Southern Ridge stood out due to its price and potential for future upside through renovations and conversions.
The property was built as apartments in the 1970s and converted into for-sale condos in the mid-2000s, but only some units sold, leaving a mix of rentals and condo ownership. This "fractured" structure can be difficult to manage, with lenders often hesitant to provide financing due to the dual property management and condo association operations.
Levy & Co. has experience handling such properties, having acquired a similar complex in Richmond's East End in 2022. The firm plans to invest $1 million in renovations at Southern Ridge and may look to convert more units into for-sale condos in the future.
The acquisition marks a shift for John B. Levy & Co., which traditionally focused on commercial real estate investment banking, helping line up debt and equity for deals while occasionally making its own acquisitions. This deal represents the first time the firm has used an insurance company's equity allocation to make a purchase.
Levy said the firm is eager but not in a rush to deploy the remaining $39 million in allocated funds, with several potential deals in the works. The focus will remain on Central Virginia, with an emphasis on workforce housing, small-bay industrial and retail properties.
