jeffdashley

July 12, 2022

ALEXANDRIA, Va.–(BUSINESS WIRE)–Bonaventure, an integrated alternative asset manager focused on the development, construction, and property management of innovative lifestyle multifamily communities in the Mid-Atlantic and Southeastern regions, today announced the commencement of construction on Phase II of Palmer’s Creek, an attainable garden-style multifamily community located in Fredericksburg, Virginia.

This project will deliver two additional residential buildings, located at 9000 and 9014 Spring Valley Lane, adding 200 new units to the soon-to-be-delivered Phase I of Palmer’s Creek Apartments. In total, Palmer’s Creek will offer local residents 400 high-quality housing units across four 4-story buildings. Phase II construction is expected to be completed in the fourth quarter of 2023.

“Bonaventure is pleased to move forward with our plan to add scale to this market-leading property, ideally situated just outside of the Fredericksburg town center,” said Dwight Dunton, founder and CEO of Bonaventure. “With the addition of these two well-amenitized buildings, we will be able to welcome hundreds of additional residents, helping to address the shortage of attainable housing options in the market.”

Residents of Palmer’s Creek will have the option of choosing from one, two and three-bedroom units, ranging in size from 707 to 1,326 square feet, and featuring modern designs and finishes. The lifestyle-oriented community’s high-end amenities include a fitness center and gym, a pool and pool deck, a social events and activities calendar, a playground, a clubroom, a media room, and more.

“Bonaventure is known for providing best-in-class amenities, quality service and a solutions-first mindset to housing needs,” continued Dunton. “We look forward to delivering an exceptional community that adds meaningful value to the lives of our residents and expanding our footprint across our target markets.”

Since its inception in 1999, Bonaventure has established itself as one of the most prolific multifamily developers and operators in the Mid-Atlantic region, and is currently expanding throughout the Southeast. Its portfolio includes a mix of affordable, luxury and senior living communities.

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June 30, 2022

Adopting the right marketing strategies can be critical to the success of your business—and no industry understands this more than hospitality, which has evolved rapidly to meet the demands of changing demographics, our increased reliance on technology and perhaps the most challenging two years in the industry’s history.

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Due to the synergies between multifamily and hospitality, apartment owners and operators can benefit by borrowing on these successful marketing strategies.

Here are five marketing strategies used by the hospitality industry that you can adopt to better market your rental properties.

 

Leveraging Technology

Remember calling a travel agent to book a hotel stay? That’s no longer necessary, of course, because hotel guests today can not only get information and reserve a room online, they can also check in and access that room via technology. You can offer prospective renters the same seamless experience today by having a well-designed website with plenty of high-quality photos of apartments and amenities, as well as leasing information, virtual tours and the ability to submit a rental application online.

“As a prospective renter, I want immediate answers,” said Tom Sloan, president of Windsor Property Management in Boston. “AI and chatbot technology allow that person to make progress in their transaction even if the leasing office isn’t open. That’s the spirit of a hotel reservation department that we’ve adopted.”

 

Branding Your Properties

Branding is a powerful marketing tool. If done correctly, it creates an expectation in the mind of the prospective customer of quality or service. You can stay in a generic hotel or you can stay at a Ritz-Carlton. Which would you prefer?

More and more apartment owners are branding their communities so prospects understand the level of service and quality they will get even before they take their first step onto a property.

“The power of brands is undeniable,” said Diego Bufquin, Ph.D., an associate professor at Rosen College of Hospitality Management in Orlando. “When you’re trying to sell rooms as an independent hotelier whose brand is unknown, it’s hard. However, if you’re selling rooms under a strong brand like Hilton, it’s easier.”

Bonaventure, a development and management firm based in Alexandria, Va., recently rolled out a “flag” for the firm’s luxury communities. “We’re trying to build brand equity in the consumer’s mind, like Hilton and Marriott with their various flags,” said Dwight Dunton III, Bonaventure’s founder & CEO. Bonaventure’s brand name Attain is now used at the company’s Class A communities.

Windsor Communities is also branding its properties, using names such as “The Victor by Windsor” in Boston or “Allure by Windsor” in Boca Raton, Fla. “We’re a national company, and we want our customers’ expectations to be the same,” Sloan said. “We have a high expectation of quality, similar to the curb-appeal expectations of a hotel.”

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June 29, 2022

Cost of capital for multifamily projects continues to increase and will likely get higher. But an offsetting reality is that demand for rental housing remains robust. Upshot: Smart developers taking appropriate levels of risk should continue to come out ahead.

Borrowing costs are 2 percent to 2.5 percent higher than a year ago, according to Kip Sowden, chairman & CEO of RREAF, which develops multifamily, hospitality and large-scale residential developments. The result is a situation not seen in years, in which cap rates have fallen below cost of debt. This impact should force some liquidity out of the market, putting pressure on cap rates to rise. But in fast-growing Sun Belt hot spots, huge population growth has created demand for multifamily housing far outstripping supply, propelling rental rates and leaving many long-time multifamily experts slack-jawed. This situation should keep cap rates low.

The current inflationary environment may create even greater migration to Texas and other Sun Belt areas. “Capital continues to be deployed in all things residential throughout Texas and most markets (in) the Southeast, so I believe these areas will be far more recession (resistant) than other parts of the country,” said Sowden.

Predictions differ on how much the Fed will raise interest rates. The rate of return on all assets is increasing, as is the risk premium for risk assets, due to uncertainties resulting from inflation, supply chain disruptions and future Fed direction. Of greater concern may be whether the Fed will aggressively shrink its balance sheet, yanking liquidity out of the system. Less cash will be available at any price. Available capital will be insufficient to fund all development projects.

“That will drive the deflation the Fed is trying to achieve,” said Dwight Dunton, founder & CEO of Bonaventure, a national company with a development focus on the Southeast.

On the equity side, cost of capital is not expected to rise until funds are raised with new expectations. But equity investors will likely grow more risk adverse immediately. Over the last two years, they’ve had to take on more risk to achieve the same returns. Now, an opposite approach—taking less risk for the same return— will likely be preferred.

Since most of the loans are floating rate, hikes in cost of capital are already ongoing. This will cause the entire capital stack or weighted average cost of capital to increase, and continue to increase throughout development periods as rate hikes continue.

While new starts have slowed, reasons may hinge less on capital costs than on different views of future stabilized asset values and what it will cost to reach those values.

The capital markets landscape has been substantially altered. Most capital providers are taking time to recalibrate.

“We are expecting partners to scrutinize the fundamentals of each investment opportunity more than they have recently,” said Kory Geans, managing partner & chief investment officer at Middleburg Communities, active throughout the Southeast. “They may be waiting to see the most recent sales of stabilized properties to confirm exit values in this current environment.”

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June 27, 2022

Alexandria-based real estate company Bonaventure has sold The Bend Arbordale apartments in Williamsburg for $100 million.

Bonaventure sold the 289-unit apartment complex to Illinois-based The Inland Real Estate Group, Bonventure announced Friday. Located at 401 Bulifants Blvd., the community has two- and three-bedroom apartments with private balconies or patios. It has a swimming pool, fitness center, business center, clubhouse and dog park. The community is near Sentara Williamsburg Regional Medical Center.

Drew White and Carter Wood, both of Berkadia, facilitated the sale for Bonaventure.

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June 27, 2022

WILLIAMSBURG, VA. — Bonaventure, a multifamily owner-operator based in Alexandria, Va., has sold The Bend Arbordale, a 289-unit apartment community located at 401 Bulifants Blvd. in Williamsburg. The Inland Real Estate Group purchased the asset for $100 million. Drew White and Carter Wood of Berkadia represented Bonaventure in the sale. Situated near Sentara Williamsburg Regional Medical Center and I-64, The Bend Arbordale offers two- and three-bedroom floor plans with in-unit washers and dryers and private balconies or patios. Amenities include a swimming pool, fitness center, business center, clubhouse and a dog park.

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