Bonaventure, a multifaceted asset manager specializing in multifamily communities in the Mid-Atlantic and Southeastern regions, has announced significant portfolio movements. The company sold an $18 million interest in Attain Downtown, a 156-unit Class-A multifamily property in downtown Norfolk, Virginia, while acquiring Cavalier Crossing, a 144-unit apartment community in Charlottesville, Virginia. These transactions were executed under the Bonaventure Multifamily Income Trust (BMIT), a perpetual life multifamily investment fund.
BMIT retains a majority stake in Attain Downtown and continues to manage its operations. The sale proceeds facilitated the acquisition of Cavalier Crossing through a tax-efficient 1031 exchange. This strategy exemplifies Bonaventure’s approach of reallocating capital from stable assets to undervalued opportunities with higher return potential.
Bonaventure sold fractional ownership of Attain Downtown via a Tenancy-in-Common (TIC) structure, enabling multiple investors to own undivided interests in a single property and defer capital gains taxes. This custom solution addressed an investor’s specific 1031 exchange needs while fostering new strategic partnerships.
“This transaction represents one of the many customized solutions we can offer our clients to solve their 1031 exchange needs, while also helping us grow strategic new partnerships,” said Bonaventure CEO and Founder Dwight Dunton. “The 1031 transaction type allows for all involved parties to benefit. BMIT retained an ownership stake in Attain Downtown and continues to manage the property, and the new co-owner enjoys the potential for risk-adjusted returns without having to actively manage the property.”
The proceeds from Attain Downtown’s sale were used to acquire Cavalier Crossing. Built in 2003, and located near the University of Virginia and a Wegmans-anchored retail center, Cavalier Crossing is set for comprehensive renovations. Bonaventure plans to upgrade unit interiors, amenities, and overall curb appeal, enhancing its existing facilities which include a swimming pool, fitness center, basketball court, and volleyball court.
“The acquisition of Cavalier Crossing aligns perfectly with our current acquisition strategy of identifying undervalued assets in growth markets that offer significant potential for value creation. By leveraging our nearly 25 years of success in multifamily development, we plan to reposition this well-located property into a thriving multifamily community,” said Dunton.
Cavalier Crossing joins BMIT’s 20-property portfolio of high-quality multifamily properties in strong markets across the Mid-Atlantic and Southeast regions. Since its inception in 2021, BMIT has utilized custom-built 1031 or 721 exchange programs to cater to investors seeking stable cash flow from multifamily properties without direct ownership and active management.
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By Proptechbuzz
By Ravi Kumar
