Bonaventure Expands Williamsburg Footprint With 148-Unit Acquisition
Bonaventure Multifamily Income Trust has completed the $27 million purchase of Colonial Towne in Williamsburg, Virginia. As Multi-Housing News reports, the acquisition of the 148-unit garden-style community was financed through a $17.6 million Fannie Mae loan and serves as the final replacement property in a three-asset 1031 exchange process.
Context from Industry Pulse
The acquisition of Colonial Towne highlights a strategic consolidation within the Hampton Roads market. By utilizing a 1031 exchange, Bonaventure transitioned capital from a single Norfolk asset into two distinct properties in Virginia Beach and Williamsburg. This move increased their localized unit count and diversified their holdings across the Virginia Peninsula. The firm now controls over 500 units in Williamsburg alone, creating significant scale in a submarket anchored by institutional employers like William and Mary. The use of Fannie Mae financing with a 2031 maturity suggests a long-term hold strategy for these aging but well-located garden-style assets.
"Colonial Towne marked the second replacement property in a 1031 exchange that began with the sale of Promenade Pointe, an 183-unit community in Norfolk, Va."
Bonaventure has increased its presence in the Hampton Roads region with the purchase of a 1970-vintage apartment complex from a private seller. The transaction for Colonial Towne was supported by a 5.45 percent interest rate note from Bellwether Enterprise Real Estate Capital, which is scheduled to mature in 2031. According to Multi-Housing News, the deal concludes a 1031 exchange that began when the firm divested the 183-unit Promenade Pointe community in Norfolk.
The acquired property features a mix of townhomes and apartments across several two-story buildings. Units at the site average 949 square feet and include configurations ranging from one to three bedrooms. Residents have access to a swimming pool, laundry facilities, and a playground. Located at 327 Merrimac Trail, the community is situated within three miles of major regional employment hubs including the College of William and Mary, Busch Gardens, and the historic downtown area.
This purchase brings the firm's total inventory in Williamsburg to 524 units. The company already manages the 228-unit Attain at Quarterpath and the 68-unit Parkway Apartments in the same submarket. Multi-Housing News notes that the firm’s broader regional strategy focuses on the Mid-Atlantic and Southeast, where it currently maintains a portfolio of 9,192 apartments across 46 distinct properties.
In addition to Colonial Towne, the recent 1031 exchange involved the acquisition of the 208-unit Royal Pointe Apartments in Virginia Beach earlier this year. The firm continues to target established garden-style assets near major transit routes like Interstate 64 and the Colonial Parkway, positioning its holdings near high-density employment centers in the Virginia Peninsula.
The Industry Pulse Bottom Line
Bonaventure is leveraging tax-deferred exchanges to deepen its market share in Virginia, focusing on vintage garden-style assets that offer proximity to major regional employers and stable long-term financing.