Connect Money
By: Joe Palmisano

May 23, 2024

Bonaventure, an alternative asset manager based in Alexandria, VA, has announced the sale of an approximately $18 million investment in Attain Downtown, a 156-unit Class-A multifamily community in downtown Norfolk, as well as the acquisition of Cavalier Crossing, a 144-unit apartment community in Charlottesville.

The transactions were carried out on behalf of Bonaventure Multifamily Income Trust, Inc., a perpetual life multifamily investment fund.

BMIT will retain controlling ownership in Attain Downtown and continue to manage its operations. The company used the proceeds from the sale to acquire Cavalier Crossing through a tax-efficient 1031 exchange.

The combined transaction represents one of Bonaventure’s current investing strategies, which is to extract capital from stable core assets and reinvest it in undervalued or mismanaged value-add opportunities with the potential for higher risk-adjusted returns.

Bonaventure sold fractional ownership of Attain Downtown as a customized solution for an investor looking to use the 1031 exchange. The sale was structured as a tenancy-in-common deal, which permits numerous investors to own undivided interests in a single property while deferring capital gains taxes using a 1031 exchange.

“The 1031 transaction type allows for all involved parties to benefit. BMIT retained an ownership stake in Attain Downtown and continues to manage the property, and the new co-owner enjoys the potential for risk-adjusted returns without having to actively manage the property,” Bonaventure CEO and founder Dwight Dunton said.

Cavalier Crossing is part of BMIT’s 20-property portfolio, which includes high-quality multifamily properties throughout the Mid-Atlantic and Southeast.

Since its founding in 2021, BMIT has acquired properties, many of which have utilized custom-built 1031 or 721 exchange programs under the Internal Revenue Code.

BMIT enables high-net-worth investors to invest in institutional-grade real estate by providing access to a diverse pool of assets with attractive risk-adjusted returns, consistent cash flow, and tax benefits. To date, the fund has 3,790 units and over $1 billion in total assets under management.

Pictured: Attain Downtown