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Bonaventure Names Andy Marshall Head of Capital Markets

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CRE Direct
September 27, 2023

Bonaventure has named Andy Marshall as senior vice president and head of capital markets, putting him in charge of the apartment developer’s capital-raising and investor-relations efforts. 

Marshall, a 23-year industry veteran, joined the Alexandria, Va., company from Peachtree PC Investors LLC, an Atlanta broker-dealer where he was president. The company had focused on helping Peachtree Hotel Group raise capital for its investments. 

He previously had been head of capital markets at Peachtree, and before that held a number of capital-raising positions with Strategic Capital Distributors, American Realty Capital, Carey Financial and Inland Securities Corp. 

Marshall’s “comprehensive understanding of the financial markets and the private-capital universe will be instrumental in furthering our efforts to introduce custom real estate investment solutions throughout market cycles,” explained Dwight Dunton, founder and chief executive of Bonaventure, which has more than $2.3 billion of assets under management. 

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Bonaventure Appoints Andy Marshall SVP, Head of Capital Markets

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ConnectCRE
September 27, 2023

Bonaventure, an integrated alternative asset manager specializing in innovative lifestyle multifamily communities in the Mid-Atlantic and Southeastern regions, has appointed Andy Marshall as senior vice president and head of Capital Markets. Based in Atlanta, Georgia, Marshall will play a crucial role in Bonaventure’s capital raising efforts, as well as support marketing, investor relations, and new product development. 

With over 23 years of experience in financial services, Marshall joins Bonaventure from Peachtree PC Investors, LLC, where he served as president and chief compliance officer and collaborated closely with the Bonaventure team as their managing broker-dealer. Prior to this role, he held fundraising positions, including national product manager, national sales director, and external wholesaler at firms like Strategic Capital, Realty Capital, WP Carey, and Inland Securities Group.  

“Andy’s comprehensive understanding of the financial markets and the private capital universe will be instrumental in furthering our efforts to introduce custom real estate investment solutions throughout market cycles,” said Dwight Dunton, founder and CEO of Bonaventure. 

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Bonaventure Appoints Seasoned Financial Executive Andy Marshall as SVP, Head of Capital Markets

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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, is pleased to announce the appointment of veteran financial services executive Andy Marshall as Senior Vice President, Head of Capital Markets. Based in Atlanta, GA, Marshall will help lead Bonaventure’s capital raising efforts in addition to supporting marketing, investor relations and new product development.

“The Bonaventure team is thrilled to welcome Andy, whose decades of experience and proven track record of success in raising capital will bring great value to the team,” said Dwight Dunton, founder and CEO of Bonaventure. “Andy’s comprehensive understanding of the financial markets and the private capital universe will be instrumental in furthering our efforts to introduce custom real estate investment solutions throughout market cycles.”

With more than 23 years of financial services experience, Marshall comes to Bonaventure from Peachtree PC Investors, LLC, where he served as President and Chief Compliance Officer and worked closely with the Bonaventure team as their managing broker-dealer. Prior to Peachtree, he served in fund raising roles including national product manager, national sales director, and external wholesaler for firms including Strategic Capital, Realty Capital, WP Carey, and Inland Securities Group. Marshall holds active Series 7, 24, 63, 66, 79, and 99 FINRA licenses.

“Bonaventure’s best-in-class offerings ranging from perpetual income and growth, preferred equity, and custom 1031s offer solutions to the current needs of family offices, institutions and financial advisors,” said Marshall. “I look forward to joining Bonaventure’s highly talented team and leveraging my deep knowledge of real estate and vast network of relationships to advance the company’s business and capital raising goals.”

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Andy Marshall joins Bonaventure as their new SVP, Head of Capital Markets.  His career announcement was featured in Green Street’s Real Estate Alert.  His announcement is featured on page 13.

 

Despite Market Turbulence, Now May Still Be A Smart Time To Invest In CRE

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Growing economic uncertainty and talks of a recession have many investors hitting the pause button, but there are reasons for those in the commercial real estate investment sector to remain optimistic no matter where the economy may be heading.

An analysis by Origin Investments found that over the course of three economic crises — the recession of the early 1990s, the dot-com bubble burst and the Great Financial Crisis — real estate investments performed better than other investments that are often considered low-risk, including Treasury bills. 

Dwight Dunton, CEO of Bonaventure, a vertically integrated real estate private equity firm, agrees that despite the current economic headwinds, it is still a smart time for investors to look into CRE — as long as they are cautious about their investments and have the right partner by their side. 

Bisnow spoke with Dunton to learn more about where he thinks the market is heading, why he still believes in the strength of the CRE market and what Bonaventure is doing to help support its clients during these challenging times. 

Bisnow: Why do you believe that now is still a smart time to invest in CRE? 

Dunton: Commercial real estate is a broad asset class. It covers the four main groups of office, industrial, retail and multifamily, but it also covers a variety of subclasses. With that in mind, I don’t think it’s a good idea to invest in CRE in the aggregate, but it is a really good time to continue to invest in certain sectors. You have to be selective — it’s an asset picker’s market. If you are very selective there are great opportunities, and if you write off CRE as a whole right now, you will be missing out. 

Bisnow: What advice do you have for investors who are nervous about the current economic climate?

Dunton: There’s always a next recession on the horizon. That’s a fact, so if you are going to be an effective commercial real estate investor, you need to have assets that are enduring, that will go through the next recession to the next expansion, whether a recession starts tomorrow or in three years. This is opposed to simply being an asset trader, where you have to time the market perfectly and get in at the bottom and get out of the top, otherwise, you can get wiped out.

The best advice I can give to investors is to invest long-term and make sure you have a conservative capital structure. So, whenever the next valuation downswing comes, you’re able to continue to hold that asset and ride it out because CRE has largely continued a  long-term upward trend in terms of wealth creation.

Bisnow: How is Bonaventure helping clients navigate the current market?

Dunton: We help investors buy great assets that we’re assuming for low fixed rates that reduce risk tremendously. We have long-term, below-market financing, helping other investors who are hoping to execute a 1031 exchange and needed a unique solution. We’re also assisting investors who may have a transition in their ownership group where some partners want to leave and others want to stay and we help facilitate that transition. 

We’re in the business of solving complex real estate problems and providing solutions through standard products and ones custom-made for a client’s specific needs.

Bisnow: What is your investment forecast for the next six months? How will Bonaventure support clients as the market continues to shift? 

Dunton: There will be continued uncertainty that will manifest itself as market dislocations. We will continue to find long-term, compounding, effective solutions and be active participants in the market, executing transactions when others are unwilling because of a lack of visibility on where the market stands.

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‘Undeniably the biggest challenge’: Richmond developers reckon with rising interest rates

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Richmond’s bustling development scene is facing the most formidable foe it has seen in recent years: rising interest rates. 

The spike in loan rates that began in 2022 has prompted some real estate developers to rethink their math, leading some to delay construction on previously announced projects in the Richmond region or, in some cases, to put project sites back up for sale. 

Interest rates had been historically low for more than a decade until last spring when, in the face of rising inflation, the Fed began raising rates at a breakneck pace, thereby increasing the costs to finance new projects. 

According to data from the Federal Reserve, its baseline interest rate spent the overwhelming majority of the past 15 years below 1 percent, which allowed developers to typically receive financing from lenders at rates between 3 percent and 5 percent. 

As of last month, the Fed had raised the baseline rate for nine months straight, putting it between 4.75 and 5 percent. That means the minimum interest rate many developers are offered by lenders could be nearly 7 percent, in some cases double what they were seeing just a year or two ago. 

Combined with increased construction costs, the broader economic environment is making it increasingly difficult for developers in the region to plan and build projects. That includes apartment buildings, which have fueled much of the ground-up construction locally in recent years. 

Jason Guillot is a principal at Thalhimer Realty Partners, a local firm that has multiple apartment buildings in the queue in Manchester and is actively building in Scott’s Addition. TRP is also part of the RVA Diamond Partners team that’s leading the 67-acre Diamond District redevelopment on Arthur Ashe Boulevard, one of the biggest projects ever planned in the city. 

Guillot said inbound migration of residents and businesses into Richmond give the region good fundamentals, but the area can’t escape the macroeconomic environment of high interest rates.

“The current rate and cost environment is undeniably the biggest challenge Richmond’s development and real estate market has faced in recent years,” Guillot said. 

He said the rate trend affects developments of all sizes – from an infill townhome project to the $2.4 billion Diamond District redevelopment. And though the sight of cranes and ongoing construction projects around the region may give the impression of business as usual, Guillot said what most don’t see is the lag effect from the recent rise in rates. 

“While people may question the real effect of these rate increases as they continue to see cranes hanging over the city, what they don’t realize is that those projects were funded prior to the change in the market,” Guillot said. 

‘Prices are just out of control’

Andy Little, a principal at John B. Levy & Co., a local investment banking firm that helps developers assemble their capital sources for projects, said that because of the change in interest rates, an apartment building that would have cost $50 million to build in 2020 might now cost around $70 million. 

“I think you could get things built in 2020 for probably $200,000 per unit,” Little said. “I’d say today that’s more like $275,000 per unit.”

With that cost factor looming, some developers have looked to unload certain projects by listing for sale both the land and approved plans for new apartment buildings in the city.

Bonaventure, a Northern Virginia-based developer, is trying to sell a 1.7-acre site and approved plans for a 203-unit apartment building in Scott’s Addition after paying $4.45 million for the property in a series of deals from 2020 to 2022. Local development firm SNP Properties put a 1-acre site and corresponding plans for a 12-story apartment tower in Jackson Ward on the market in March. It paid $6.1 million for that site in September, a sale that was the highest per-acre tag the neighborhood’s seen. 

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All Bonaventure Sponsored Private REIT Enters Tampa Bay Market and Acquires Three Multifamily Communities Totaling 601-Units

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ALEXANDRIA, VA – 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, announced that its affiliated private REIT acquired three multifamily properties in separate UPREIT transactions.

Bonaventure furthers its footprint in Virginia and expands into Florida with the strategic off-market purchases of three properties. Within Virginia, Bonaventure’s private REIT acquired Cedar Broad Apartments and East Beach Marina, 204-unit and 137-unit communities in the Richmond and Norfolk markets, respectively. In Florida, Bonaventure’s REIT acquired Shadetree Apartments, a 260-unit community located in Ruskin, a submarket of the Tampa MSA.

“These transactions demonstrate our ability to continually source and close on attractive opportunities that meet our strict investment criteria,” said Dwight Dunton, Bonaventure’s CEO and Founder. “As a well-capitalized, cycle-tested investor, we pride ourselves on serving as a reliable transaction partner and our ability to steadily expand our footprint in our target markets.”

Dunton continued, “UPREIT transactions like these continue to serve an important purpose for property owners who are seeking long-term tax efficient compounding growth and greater after-tax returns. As a company, we will continue to pursue acquisition and development opportunities where we believe we can achieve the best risk-adjusted returns.”

Details on the three multifamily communities, which were sourced through Bonaventure’s extensive network of relationships, can be found below:

Cedar Broad Apartments: Constructed in 2011, the mid-rise apartment community is well located in the Shockoe Bottom district. It features one-, two-, and three-bedroom units as well as a breakfast/coffee concierge, a rooftop terrace with full kitchen, an electric vehicle charging station, covered parking, fully equipped gym and more.

East Beach Marina Apartments: Built in 2015, the Chesapeake Bay waterfront apartment community is located in the East Beach submarket and offers one- and two-bedroom units with modern open floor plans and high-end features and a wealth of outdoor amenities to complement its waterfront positioning.

Shadetree Apartments: Constructed in 2019, the garden-style apartment community offers one, two, and three-bedroom units. Top-of-the-line amenities include expansive windows, private entertaining cabanas, a clubhouse with state-of-the-art fitness equipment, a swimming pool and sauna.

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