PXV and Intercontinental buy 196-unit Virginia Beach apartments

PXV Multifamily and funds managed by Intercontinental Real Estate Corporation have bought Indigo 19, a 196-unit apartment property in Virginia Beach, Virginia — the second PXV purchase in 60 days and the second to run through a different joint-venture partner. The four-story building at 1940 Pavilion Drive, completed in 2013 in the Oceanfront submarket, holds one-, two- and three-bedroom homes averaging 931 square feet and closed 99 percent leased. No price was reported.

The seller was represented by a Colliers team of Will Mathews, Tommy Leachman, William Dickinson and Mike Kidd, PXV by Ferrari and Nausha, and Greystar has been engaged to run the property. The purchase was leveraged by PXV assuming an existing Freddie Mac loan at a fixed interest rate, which carries the in-place obligation and its terms into the buyer's capital stack. PWD's tracking shows both names are routine on this beat: 19 stories involving Freddie Mac, 12 involving Greystar.

The one yardstick already on the books is the Georgia trade: in August, with Pamera North America as partner, PXV bought Village on the Green, 216 units, for $29.5 million, roughly $136,600 a unit. Indigo 19's price is not in the reports, so whether the Virginia Beach asset cleared above or below that basis cannot be checked against anything public, and the Georgia figure remains the only basis for judging whether PXV is buying at a consistent entry point. Two acquisitions, two capital partners, no described fund behind either — structure is the more comparable item.

Assumption of the existing loan carries the in-place terms along with the obligation, sparing PXV a fresh execution while committing it to terms it did not negotiate. The reports date neither the loan nor its coupon, so what the transfer was worth to the buyer cannot be measured from the outside.

For an income buyer, the appeal is straightforward: a 2013-vintage asset that was 99 percent leased at closing leaves little lease-up risk to price, putting the return on the operator and the rent roll rather than on the lease-up. Greystar takes the day-to-day; PXV holds the debt and the equity, raised deal by deal rather than from a single committed vehicle, as apartment capital consolidates into fewer and larger hands.

The seller's identity and the price are the next items to watch. If Indigo 19 cleared near $136,600 a unit, the two purchases are the same trade run twice; anything above that marks the price of the Oceanfront address.