ALEXANDRIA, Va.--(BUSINESS WIRE)--Bonaventure, an integrated alternative asset manager focused on the investment, development, construction and management of innovative lifestyle multifamily communities in the Mid-Atlantic and Southeastern regions, today provided an update on Bonaventure Multifamily Income Trust’s (BMIT®) investment activity and operating performance. BMIT® is Bonaventure’s perpetual life multifamily investment fund and, since its formation in 2021, has focused on acquiring income-producing multifamily assets with long-term, fixed-rate debt using custom, tax-advantaged capital solutions.
Strategic Acquisitions in Key Markets Through Creative Deal Structures and Tax-Efficient Solutions
Over the trailing 12 months, BMIT® acquired three multifamily communities comprising a total of 369 units and a combined capitalization of $96.5 million. The acquisitions included Monticello Station in Norfolk, Va. (121 units and 33,000 square feet of retail), Commons on Potomac Square in Sterling, Va. (104 units) and Cavalier Crossing in Charlottesville, Va. (144 units). These transactions expanded BMIT®’s presence in its targeted Virginia markets and marked its entry into Charlottesville, which exhibits favorable long-term fundamentals. These acquisitions are particularly notable as they showcase Bonaventure’s creative solution and deal structuring capabilities as each transaction was capitalized entirely through an UPREIT/721 Exchange or as part of a 1031 Exchange funded by the fractional sale of another BMIT® asset.
“Our ability to offer flexible deal structures and tax-efficient solutions, such as 721 exchanges and 1031 exchanges, has been a key differentiator for BMIT® in this market,” commented Dwight Dunton, CEO and Founder of Bonaventure. “This flexibility has allowed us to unlock transactions, provide compelling options for sellers, and ultimately drive value for our investors.”
Strong Operating Performance
For the year-to-date period ending May 31, 2024, BMIT®’s same-store net operating income (NOI) increased by 3.1% as compared to the same period in 2023. Excluding its properties in new supply-challenged markets, BMIT®’s same-store NOI has increased by 4.5%. This robust performance highlights Bonaventure’s effective property and asset management strategies, alongside its strategic focus on markets characterized by limited new supply and strong demand for premium rental housing. With favorable market dynamics expected to persist in its targeted regions, BMIT® is well-positioned for continued NOI growth moving forward.
Dunton added: “Acquiring approximately $100 million in core multifamily properties and maintaining strong rent growth in today’s market conditions speaks to the resilience of our platform and the depth of our relationships. Importantly, we have also executed select value-add investments and are seeking more opportunities that meet our strict investment criteria, opening up another avenue of growth. BMIT®’s performance and ability to transact at a time when deal activity is low reflects our team’s skill in sourcing, structuring and executing high-value investment opportunities. With a strong and growing investment pipeline, we look forward to advancing BMIT®’s investment mandate.”
Well-Positioned Portfolio with Long Term Debt
BMIT®’s 20-property portfolio, consisting of 3,790 units and over $1 billion of gross assets under management, continues to perform with high occupancy and steady cash flows. The portfolio is well-insulated from interest rate risk with over 97% of property-level fixed-rate debt and an average loan maturity of over 20 years – a significant advantage in today’s high-rate environment where floating-rate loans are causing distress, and once cash-out refinances are increasingly cash-in. Notably, 51% and 8% of BMIT®’s portfolio debt comprises HUD and VHDA loans, with average maturity dates of May 2057 and November 2050, respectively. BMIT® will not face its next loan maturity until May 2027, with the latest currently scheduled for December 2061.
Looking ahead, Bonaventure is confident in BMIT®’s continued ability to capitalize on emerging value-add investment opportunities that present outsized risk-adjusted return potential. BMIT® remains focused on high-growth markets in the Mid-Atlantic and Southeast, such as Northern Virginia and Hampton Roads, which have been among the top-performing markets in the country for rent growth. Virginia Beach was recently ranked #8 in U.S. News & World Report's 150 Best Places to Live in the U.S.
About Bonaventure
Headquartered in Alexandria, Virginia, Bonaventure is an integrated alternative asset management firm specializing in multifamily design, development, construction, investment and property management. Dwight Dunton founded Bonaventure in 1999 with the intent of connecting capital with assets through the creation of best-in-class capabilities. The firm focuses on ingenuity as a means to build enduring value and generate excess returns on a risk-adjusted basis. To learn more, visit www.bonaventure.com.
