Meridian takes part in two Virginia deals

Real Estate Weekly, August 24, 2005

Bonaventure Realty Group has acquired Ivystone and Oak Lake Apartments in Chesapeake, Va. at a total purchase price of $49.32 million, with the help of Meridian Capital Group, which secured total debt of $39.456 million for the transaction.

"Bonaventure is excited to expand our presence into the Chesapeake-Virginia Beach market," said Dwight Dunton, president of Bonaventure. "We believe the positive economic growth in the area will continue and we plan to actively pursue more acquisitions in this area in the near future."

Matthew Texler and Jacob Katz, from Meridian's Maryland office, negotiated the loan terms and achieved an outstanding rate in the low 5% range, with a 10-year, interest-only term. This is the second major credit facility Meridian has negotiated this year for Bonaventure. The company's total debt financings in 2005 now stands at $105 million.

Both properties were purchased under a Tenants-in-Common structure, which has been gaining popularity over the last three years as property values have increased. Oak Lake was offered as a securitized TIC deal with a total of 13 tenants in common, contributing equity of $5.3 million. Ivystone was also financed as a Tenants-in-Common investment placed through a private transaction. This transaction further establishes Bonaventure as a sponsor of TIC multi-family replacement property investments for investors completing tax-deferred 1031 exchanges.

Ivy Stone, with 368 units, and Oak Lake, with 172 units, are located on Volvo Parkway and Oak Lake Way respectively, in Chesapeake. Occupancy at both properties is above 99%. Bonaventure plans to complete deferred maintenance immediately at each complex. Future plans for the properties include upgraded floor plans and finishes and new amenities.