Four Mile Capital Closes Their 13th Acquisition, Grows their Richmond Portfolio

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Four Mile Capital, a privately-held real estate investment firm based in Louisville, CO, has acquired the River’s Edge at Manchester Apartments, a 212-unit multifamily community in Richmond, VA.

River's Edge at Manchester

The success of this transaction speaks to the strength of our relationships and track record of closing, two cornerstones of the business we are building.

Four Mile Capital (“FMC”), a privately-held real estate investment firm based in Louisville, CO, has acquired the River’s Edge at Manchester Apartments (“River’s Edge”, “the “Property”), a 212-unit multifamily community in Richmond, VA. River’s Edge, built in 2018 and currently 94% occupied, sits on almost 2 acres of land in one of Richmond’s fastest growing submarkets. The distinctive luxury community consists of 131 one-bedroom units, 80 two-bedroom units, and one three-bedroom penthouse, each with its own private terrace. Greystar (“Greystar”), has been awarded the property management contract.

The transaction closed on April 16, 2021, for $47,500,000, which equates to $224,000 per unit or $252 per square foot. As part of their acquisition, FMC raised over $15M in equity from their network of high-net worth investors and assumed the seller’s $34M Fannie Mae loan with 8 years remaining on the term. This is FMC’s second asset in the Richmond market.

“The success of this transaction speaks to the strength of our relationships and track record of closing, two cornerstones of the business we are building. We were awarded this off-market opportunity due to our history with the local Berkadia investment sales office, who was selling another deal of ours in Virginia, and quickly established a productive relationship with the seller, a local development group. We offered the seller certainty of execution and a quicker path to closing than if they waited until 2021 to market their deal, while freeing up their resources sooner to go work on their next project. We measure success in a transaction when all parties feel like they’ve achieved a beneficial outcome, and this is a great example of that collaboration at work,” says Eric Mallon, one of FMC’s founding partners.

River’s Edge is located in the Manchester submarket of Richmond, just across the James River from downtown. This is a high-density, rapidly transitioning urban neighborhood, with a multitude of bars and restaurants within immediate walking distance of the Property, and also within minutes to two major universities (University of Richmond and Virginia Commonwealth University) and to the highest concentration of jobs in the metro area. The Property is only 5 minutes to downtown, 15 minutes to FMC’s other Richmond property (Laurel Pines), and 20 minutes to the Richmond International Airport.

The acquisition, FMC’s sixth in the state of Virginia, aligns with their initiative to expand throughout the south-central U.S. in markets that demonstrate a balanced outlook for stability and growth. “Richmond, for us, represents the quintessential post-pandemic market, with vibrant and diverse business, tech, and cultural institutions, a built-in, highly educated workforce, very affordable cost of living, and central east coast location. Richmond offers its residents most, if not all, of the amenities typically found in larger cities along with all of the benefits of a small city, and is positioned to thrive coming out of the current recession,” continued Mallon.

The newer construction River’s Edge apartments were constructed to LEED standards with poured concrete walls and floors and a brick masonry and stucco accent panel exterior. The unit interiors feature top-of-the-market unit finishes including quartz countertops, tile backsplashes, chef islands and stainless appliances, and were delivered with no deferred maintenance or expected capital needs. The best-in-class amenity package features an expansive 3rd floor plaza deck with a resort-style, heated saltwater pool, fire pit, pet park, a state-of-the-art fitness center with cardio theater and a Peloton fitness on demand system, and a Sky Lounge on the 10th floor that is highly appealing to Manchester’s residents.

FMC’s business plan will focus on improving operations through the implementation of cutting-edge management and marketing strategies, utilizing their institutional-quality asset management platform to control operational expenses, push other income opportunities, and make strategic decisions for the asset. “River’s Edge is representative of the risk-adjusted return investment profile that excites us right now, and this is our fourth straight acquisition built since 2018. By purchasing these newer assets below market and replacement cost, we eliminate virtually all of the capital and execution risk that comes with buying an older, value-add property, but we aren’t just relying on submarket appreciation to drive value for our investors. With our teams’ background and expertise in operations, we are able to identify creative ways to actively increase income and better manage expenses to push NOI over the hold period,” said Chris Geer, another Four Mile founding partner. “It’s become an increasingly central part of our investment strategy, and it’s one that seems to resonate with investors in this time of relative uncertainty.”

Four Mile Capital continues to pursue stabilized and select value-add investment opportunities in secondary and tertiary markets throughout the U.S, with a specific focus in the Mountain West, Midwest and Southeast. FMC employs an opportunistic strategy in acquiring off-market, limited-market and select fully marketed properties that fall below the radar of its institutional peers, targeting investments with a total capitalization between $10MM and $100MM, and between $5MM and $35MM of equity.

Four Mile Capital was formed in 2016 by three veteran real estate principals: Chris Geer, Eric Mallon and Terry Simone. Their current portfolio consists of nearly 1,500 units valued at $225M, but collectively, they have been involved in the ownership, acquisition, asset management and property management of approximately 20,000 multifamily units representing over $1B in value and have proven their ability to identify and unlock asset value by instituting capital improvement programs and best management practices. Learn more about Four Mile Capital at http://www.fourmilecapital.com or on LinkedIn.

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Eric Mallon, Principal
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