Located at 2018 Cunningham Drive and formerly known as Liberty Estates, Peninsula Grove includes one-, two- and three-bedroom apartments in 19 two-story buildings. Tryko Partners immediately will launch an $8.5 million capital improvement campaign there. The initial work includes utility improvements, window and sliding door replacements in all units, and general upgrades to the leasing center, clubhouse and grounds. Over the next few years, individual unit renovations will focus on kitchens, baths and fixtures.
The community currently is 90 percent occupied. "Peninsula Grove has outstanding upside potential, and we will leverage our property-turnaround expertise and hands-on operational approach to bring it to the next level," noted Uri Kahanow, Tryko Partners' director of acquisitions. "The property has ‘good bones' and sits in a great location. It is not easy to find true value-add opportunities at attractive prices in today's market, and we are excited about adding a project that falls so perfectly in line with our target niche."
Peninsula Grove residents enjoy onsite amenities including a clubhouse with community rooms, an indoor spa, fitness center and business center; outdoor pool, playgrounds, tennis courts and gazebo; and extra storage and central laundry facilities. The property is located in Hampton's desirable Coliseum Central district, a vibrant retail, dining and entertainment destination. Easily accessible from I-64, it is within walking distance of the new, 991,000-square-
"The Hampton market is strong and getting better," Kahanow said. "We are a relative newcomer to Virginia multifamily, and the opportunity to add nearly 600 units here was a great way to solidify our presence. We look forward to further growing our regional holdings in the coming months and years." Kahanow added that Virginia is a natural target market for his firm, which over the past several years has expanded its holdings down the Eastern Seaboard through southern Maryland. Last spring, it acquired Midlothian Village, a 216-unit rental property in Richmond.
CBRE brokered the Peninsula Grove sale, and the firm's Capital Markets group assisted in securing the financing for Tryko Partners, through Prudential Mortgage Capital Corp. "CBRE has financed us a handful of times already, and they know our ability to successfully execute on a wide range of business plans - including the value-add strategy we will employ in this investment,"
"The financing garnered interest from a wide range of groups, including balance sheet lenders, CMBS shops and agency groups," he added. "We see this as a testament to the quality of the asset, our attractive going-in basis, and Tryko's reputation as a reliable multifamily borrower and operator. Prudential really worked hard on this one to give us great execution, from origination to underwriting, processing and closing."
Headquartered in Brick, N.J., Tryko Partners maintains a growing residential portfolio with more than 6,000 market-rate and affordable-housing rental units in New Jersey, New York, Maryland, Massachusetts, Ohio, Pennsylvania and Virginia. Established in 1989, the firm also invests in healthcare facilities and tax liens.