Bonaventure Multifamily Income Trust (BMIT®) Investment Activity and Portfolio Performance Update
2024年8月1日 - 10:26PM
ビジネスワイヤ(英語)
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.
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