Bonaventure Multifamily Income Trust (BMIT®) Portfolio Activity and Performance Update

ALEXANDRIA, Virginia, August 1, 2024–(BUSINESS WIRE)–Bonaventure, an integrated alternative asset manager focused on investing, developing, constructing and managing innovative multifamily communities in the Mid-Atlantic and Southeast regions, today provided an update on the Bonaventure Multifamily Income Trust (BMIT)^®) investment activities and operating results. BMIT^® is a perpetual life investment fund owned by Bonaventure that, since its inception in 2021, has focused on acquiring income-producing multifamily assets through long-term, fixed-rate debt using non-standard, tax-advantaged capital solutions.

Strategic acquisitions in key markets By Creative transaction structures and tax-friendly solutions

In the last 12 months, BMIT^® acquired three multifamily developments totaling 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 space), Commons on Potomac Square in Sterling, Va. (104 units) and Cavalier Crossing in Charlottesville, Va. (144 units). These transactions expanded BMIT^®presence in the Virginia target markets and marked the entry into Charlottesville, which demonstrates favorable long-term fundamentals. These acquisitions are particularly noteworthy because they demonstrate Bonaventure’s creative solutions and transaction structuring capabilities, as each transaction was capitalized in its entirety through a UPREIT/721 exchange or as part of a 1031 exchange financed by a fractional sale of another BMIT^® advantage.

“Our ability to offer flexible transaction structures and tax-advantaged solutions, such as 721 and 1031 exchanges, has been a key differentiator for BMIT^® in this market,” commented Dwight Dunton, CEO and founder of Bonaventure. “This flexibility allowed us to unlock transactions, provide compelling options for sellers and ultimately increase value for our investors.”

Strong operational performance

In the period from the beginning of the year to May 31, 2024, BMIT^®Same-store net operating income (NOI) increased 3.1% compared to the same period in 2023. Excluding properties in undersupplied new markets, BMIT^®Same-store NOI increased 4.5%. This solid performance underscores Bonaventure’s strong property and asset management strategies, as well as its strategic focus on markets characterized by limited new supply and strong demand for premium rental housing. With favorable market dynamics expected to continue in target regions, BMIT^® is well-positioned for further NOI growth in the future.

Dunton added: “Raising approximately $100 million in core multifamily properties and maintaining strong rental growth in the current market environment is a testament to the resilience of our platform and the depth of our relationships. Importantly, we have also made select value-add investments and are pursuing more opportunities that meet our stringent investment criteria, opening up another path for growth. BMIT^®The efficiency and ability to execute transactions during times of low trading activity reflects our team’s ability to source, structure and execute valuable investment opportunities. With a strong and growing investment pipeline, we look forward to growing BMIT^®“investment mandate”.

Well positioned portfolio with long-term debt

BMI^®The 20-property portfolio, consisting of 3,790 units and over $1 billion in gross assets under management, continues to achieve high occupancy rates and consistent cash flows. The portfolio is well protected from interest rate risk with over 97% fixed debt at the property level and an average loan maturity of over 20 years – a significant advantage in today’s high-interest-rate environment, where variable-rate loans are causing problems and, after cash is paid, refinancings are increasingly cash. Notably, 51% and 8% of BMIT^®BMIT’s debt portfolio includes HUD and VHDA loans with average maturities of May 2057 and November 2050, respectively.^® The next loan instalment will not be due before May 2027, and the latest repayment date is currently scheduled for December 2061.

Looking to the future, Bonaventure is confident about BMIT^®BMIT’s continued ability to capitalize on emerging value-added investment opportunities that present above-average risk-adjusted return potential.^® continues to focus on high-growth markets in the Mid-Atlantic and Southeast, such as Northern Virginia and Hampton Roads, which are among the best-performing markets in the country in terms of rent growth. Virginia Beach was recently ranked No. 8 in U.S. News & World Report’s 150 Best Places to Live

About Bonaventure

Based in Alexandria, Virginia, Bonaventure is an integrated alternative asset management firm specializing in the design, development, construction, investment and management of multifamily real estate. Dwight Dunton founded Bonaventure in 1999 with the goal of aligning capital with assets by creating best-in-class opportunities. The firm focuses on ingenuity as a means to build lasting value and generate excess risk-adjusted returns. To learn more, visit www.bonaventure.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801265735/en/

Communication

Media
[email protected]