PXV Multifamily Acquires 196-Unit Virginia Beach Apartment Community

VIRGINIA BEACH, Va. - EntSun -- PXV Multifamily in joint venture with funds managed by Intercontinental Real Estate Corporation ("Intercontinental") has acquired Indigo 19, a 196-unit apartment community in Virginia Beach, VA, marking its second investment in the past 60 days.

Located at 1940 Pavilion Drive, Indigo 19 is a newer vintage mid-rise apartment community situated in Virginia Beach's Oceanfront submarket. Built in 2013, the four-story property features a mix of one-, two- and three-bedroom apartment homes averaging 931 square feet and offers residents a full amenity package including a resort-style swimming pool, two-story clubhouse, fitness center, business center and landscaped courtyards.

"Virginia Beach is not only Coastal Virginia's strongest multifamily submarket but also has been one of the country's more resilient submarkets over the past several years," said PXV Founder and Managing Partner Matt Ferrari.  "Demand is driven by a highly diversified and growing employment base anchored by military and defense operations, healthcare, logistics, maritime commerce, tourism and higher education.  Yet, barriers to future development have resulted in virtually no new supply planned for the near term."

With the broader forward pipeline remaining constrained, the Hampton Roads/Virginia Beach submarket is positioned to sustain positive fundamentals as one of the few markets where supply and demand are clearly moving in the right direction simultaneously, according to a report by Colliers which marketed the property on behalf of the seller.

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Amid a highly competitive bidding process that included private and institutional investors and local operators, newly formed PXV prevailed based on its collective experience, strong market reputation and ability to close on an accelerated timeline.

"This investment underscores our ability to source highly sought-after opportunities, whether it's off-market or in a competitive bid environment," added George Nausha, PXV Managing Director, Acquisitions.

PXV plans to change the entire look of the property with a new exterior paint scheme, and improvements to the clubhouse, common areas corridors, pool and courtyard areas.   PXV also will undertake a light cost-efficient renovation of all apartment interiors, which are either in their original condition or have received modest updates since the property's completion. Improvements, which will be made as apartments turn, will include new cabinet fronts, new lighting and plumbing fixtures and flooring as needed.

"However, we see the real value creation in the improvement of the operations to better position the asset within its competitive set," added Ferrari.  "We believe that by applying PXV's hands-on asset management approach we can enhance the resident experience while capturing the property's full potential."

To complement PXV's in-house construction and asset management platforms, the firm has engaged Greystar for on-site property management.

The acquisition was leveraged with PXV assuming an existing Freddie Mac loan at a fixed interest rate below four percent with 41 months remaining on the term.

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Indigo 19 was 99 percent leased at closing.

The property was marketed on behalf of the seller by the Colliers team of Will Mathews, Tommy Leachman, William Dickinson and Mike Kidd. PXV was represented by Ferrari and Nausha.

In August, PXV in joint venture with Pamera North America made its first investment with the acquisition of Village on the Green, a 216-unit apartment community in Atlanta, Georgia for $29.5 million.

"Acquiring Indigo 19 represents a high-conviction entry into Virginia Beach, which has demonstrated strong economic fundamentals and sustained renter demand," said Chris LaFrance, Associate Director of Acquisitions for Intercontinental Real Estate Corporation. "We see immediate upside in repositioning this asset to deliver premium housing to the local workforce while driving risk-adjusted returns for our investors."

About PXV Multifamily
PXV Multifamily (http://www.pxvmultifamily.com)  is a Miami-based real estate investment firm focused on acquiring and operating multifamily properties across the United States. Backed by Houston-based BroadVail Capital Partners, PXV aims to acquire $2 billion in multifamily assets over the next three years through a disciplined, operations-driven investment strategy.