Croatan Investments has purchased Springhouse Apartment Homes, a 432-unit class B apartment community located off Interstate 64 near the bustling Oyster Point business district.
At Springhouse, residents have convenient access to brand name stores such as Whole Foods, Trader Joes, Costco, Target and Fresh Market. The property is also close to major employment drivers such as Jefferson Lab, Canon, Ferguson Enterprises and City Center at Oyster Point. “This is a beautiful community with both an incredibly stable operating history and enormous profit potential,” says Paul Van, Managing Partner of Croatan Investments. “We intend to maintain the property to its existing high standard and beyond.”
Croatan plans to implement a full-scale renovation at Springhouse. The common areas, including the clubhouse, will be upgraded. There will also be improvements to the resort pool area plus new lush outdoor patio furniture, an expanded fitness center, a community fire pit and sitting area, landscape improvements and addition of stacked stone and accent colors to the buildings. Each unit interior will receive premium silver or black appliances, granite kitchen and bathroom countertops, custom kitchen and bathroom cabinetry with brushed nickel hardware, modern lighting packages and new plush carpeting and wood-grain plank flooring.
Established in 2016, the core team at Croatan Investments previously worked together at investment firm FortCap Partners. In early 2016 Croatan purchased four apartment assets in Atlanta, Georgia in partnership with institutional fund managers. Including legacy FortCap assets managed by its team, the Croatan portfolio boasts almost a dozen apartment complexes across the Southeast from Virginia to Florida.
“We’ve always kept a close eye on Hampton Roads but have historically preferred to focus on large markets in the Southeast,” says Van. “While we do not have a set allocation goal for the geography of our portfolio, we do believe that we still need to add more weight to Virginia to complement our other holdings. We see a window of opportunity to make good buys in an area that has historically proven to be recession-proof, currently has less expensive asset pricing than other markets and is in our own backyard. We also believe the local economy may pick up if the new administration achieves his goal of increasing the military budget. Our firm is currently evaluating making multiple investments in Hampton Roads.“