A Virginia Beach-based real estate investment firm has added two apartment communities in Hampton and Virginia Beach to its properties and expects to invest around $4 million in renovations to one of them.
Croatan Investments acquired Waypoint at Hampton, a 210-unit class B multifamily asset in Hampton, and Ultris Banyan Grove, a 288-unit class A multifamily asset in Virginia Beach. The classes distinguish the properties by quality of the acquisition, location and the year in which it was constructed; class A is considered a better asset.
Waypoint, newly named Luna Pointe Apartments, was built in 1985 and acquired by Croatan in July. Ultris Banyan Grove, which has been shortened to Banyan Grove, was built in 2003 and acquired in a partnership with global institutional investment manager Bentall Kennedy in August.
Croatan managing partner Paul Van said the company was interested in the two communities because of their potential.
“We chose both assets because they have a ton of upside through an improvement on operations and a renovation. At Banyan, it’s located in a rapidly-growing part of town with proximity to Town Center, the new hospital and biomedical corridor,” he said in an email. “At Luna, we were attracted by the stability offered by nearby employers like NASA Langley and Langley AFB (Air Force Base).”
Jim Saven, the director of construction for Croatan, said renovations at Luna will begin Oct. 7 with the installation of low-flow, water-saving devices for plumbing and new appliances, lighting and flooring for all the apartments.
The building exteriors, leasing office, clubhouse and fitness center will undergo renovations as well, such as transforming the existing tennis court into a park area with a fire pit. Saven also said some of the building roofs have been undergoing repairs.
“We’re going to change the colors on a few buildings. We’re going to be doing some kind of feature,” he said. “We’re working with a designer right now.”
Saven said the leasing office and clubhouse are in “horrible” condition and will be combined into a more functional space with a bigger gym and fitness center.
Banyan is in better condition and will only be receiving a landscaping cleanup, gutter work, roof repairs and asphalt repairs, Saven said.
Croatan declined to disclose the financial terms of the acquisitions.
The Franklin Johnston Group in Virginia Beach will manage both properties.