Understanding what the numbers aren’t telling you is a skill only a few brokers possess. Knowing that the financials were saying one thing about the property but the market was saying something else meant opportunity.
Developer: Clachan Properties + Great Richmond Rentals
Management: Great Richmond Rentals
Residential Broker: One South Realty
Units: 176 Residential Apartments
Development: Conversion Conversion
Broker of Record: Tom Rosman/Rick Jarvis
The Ashley Terrace apartment complex was a one owner property in central Henrico County just north of the Henrico/Richmond border.
The 176 unit complex was spread out over a series of 16 buildings spaciously arranged in a wooded mature setting.
As property values were rising quickly in all communities surrounding Richmond, especially in Henrico County, the conversion from apartments to condominiums made sense, especially at the affordable price points. Finding a group that could manage the conversion and broker the individual properties was the challenge.
The partners of what would become One South Realty found and assembled a capable development group that had the following skills:
- development finance
- mortgage finance
- construction and renovation
- property management
- condominium association management
The ownership group was able to renovate and sell over 60 of the 176 units prior to the market adjustment of 2008. When the mortgage finance market largely disappeared for affordable housing and condominium properties, the envelopers elected to secure permanent finance and continue to manage the property as apartments.