Newport News apartments sell for $51M

The Cottage Grove Apartments complex in Newport News has been sold for $51 million.

New York-based real estate company Beachwold Residential LLC sold the 112 building complex with 552 units to Virginia Beach-based real estate firm Featherstone Partners. The complex was originally built in 1948 and renovated in 2009. Featherstone plans to add amenities and operational improvements through new management. Featherstone selected Newport News-based Drucker & Falk LLC for property management.

Located at 614 Peninsula Drive, the apartments are 6.3 miles from Christopher Newport University, 6.5 miles from Thomas Nelson Community College and 7.4 miles from Hampton University.

Hunter Wood, of Northmarq’s Richmond debt and equity team, secured acquisition financing of $42.72 million for the property through a bridge loan.  Wink Ewing, Mike Marshall, Matt Straughan and Jared Alcorn on Northmarq’s Richmond investment sales team arranged the sale. Northmarq represented both the buyer and the seller.

“This opportunity presented a blank canvas with tremendous upside for the buyer as the property was built with great bones and has a neighborhood feel that nearby competitors lack,” said Ewing, with Northmarq, in a statement. “At the time of closing, new leases were seeing 20%+ trade-outs and occupancy was at an all-time high.”

Beachwold controls over 15,000 multifamily units in Connecticut, New Jersey, Virginia, Georgia, Florida, Texas and Tennessee. The primary focus of Featherstone Partners is on multifamily assets in the Southeast and mid-Atlantic.