Bonaventure’s Perpetual Life Fund Leads Investment Activity in 2023

Vehicle acquires five value-add multifamily communities totaling ~$240 million

Transaction volume driven by Bonaventure’s custom tax-efficient solutions for sellers seeking liquidity and optionality

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 announced its investment activity exceeded $240 million in 2023. Transaction volume was driven by Bonaventure’s perpetual life multifamily fund, which saw consistent deal flow through the strategic execution of tax-deferred investment solutions custom-built for sellers seeking optionality and coveted liquidity.

Successful Acquisition Strategy

In a year marked by rising interest rates and economic uncertainty, creating constrained transaction volume across real estate asset classes, Bonaventure successfully weathered the conditions nearly matching its acquisition activity in 2022. In 2023, the company’s perpetual life multifamily fund purchased five multifamily communities in off-market transactions, comprising 1,032 units with a total capitalization of approximately $240 million. Four of the properties are in Virginia, further expanding and diversifying Bonaventure’s footprint in its home state. Bonaventure also entered the state of Florida by acquiring a multifamily community in the Tampa Bay submarket of Ruskin. Bonaventure plans to maximize the value of these assets for residents and investors through strategic capital and operating improvements.

Utilization of Section 1031 and 721 Exchange Programs

These strategic acquisitions demonstrate Bonaventure’s effective utilization of its perpetual life multifamily fund, a fundamental differentiator and key competent of its investment platform. This vehicle affords Bonaventure the flexibility to transact efficiently, demonstrating resilience and adaptability amidst fluctuating market conditions. Integral to these transactions are the use of 1031 and 721 exchange programs. Over the last 12 months, these programs have played a pivotal role in shaping the company's investment activity by enabling tax-deferred acquisitions within its private capital network. Bonaventure leveraged this exclusive network in conjunction with these tax-deferred strategies to identify and capitalize on opportunities that may otherwise be inaccessible through traditional channels.

Tailored Decision-Making within a Proprietary Investor Network

One such opportunity was Bonaventure’s November acquisition of Monticello Station, a 121-unit Class-A multifamily community in Norfolk, Va. where the company sponsored a 1031 exchange on behalf of its investment partner. Such exchange programs allow motivated sellers to defer capital gains taxes that would typically be incurred upon the sale of a property. By mitigating the immediate tax impact, investors can maintain a more robust financial position for future investments. Leveraging real estate exchange programs enabled Bonaventure’s transaction flexibility in a year marked by uncertainty. These types of deal structures will continue to play a key role in Bonaventure’s investment activity in 2024.

Creativity and Flexibility

With a focus on acquisitions, Bonaventure judiciously limited development activity in 2023, commencing one 195-unit development in Virginia Beach, Va. The company also delivered a mix of five market rate and luxury multifamily communities and one senior living community in 2023, adding 1,032 units to its growing portfolio. In a notable demonstration of adaptability, Bonaventure opportunistically delivered 568 purpose-built self-storage units on land adjacent to four of its existing communities, enabling the company to diversify its income streams and capitalize on the market need for this type of real estate product.

Looking Ahead: A Strong Foundation for Future Growth

Commenting on the year’s activity, Bonaventure CEO and Founder Dwight Dunton said, “In reflecting on this year’s accomplishments, I take immense pride in our team’s unwavering positivity and focus, which continue to propel Bonaventure to new heights. Our deliberate focus on targeted transactions, coupled with the utilization of real estate exchange programs, not only allowed us to preserve capital and fortify our future purchasing power, but also strengthened our position as an industry leader in residential housing. By offering our investors exclusive opportunities for diversified, tax-efficient wealth building solutions, we reinforced our commitment to responsible capital stewardship. We continue to take a cautious approach toward advancing new construction projects. This strategic foresight ensures that we will be prepared to intensify our activities when the timing is optimal. Bonaventure is not merely navigating the currents, we are actively shaping the trajectory of our success for the benefit of our various stakeholders.”

About Bonaventure

Headquartered in Alexandria, Virginia, Bonaventure is an integrated alternative asset management firm focused on the investment, development, construction and management of innovative lifestyle multifamily communities in the Mid-Atlantic and Southeastern regions. Bonaventure has over $2.3 billion of assets under management, is an expert at utilizing low-cost financing and manages over 6,500 apartment units across 35 communities primarily in the Mid-Atlantic and Southeastern regions. Since its founding in 1999 by Dwight Dunton, with the intent to create best-in-class capabilities connecting capital to assets, the focus of the firm has been to generate excess returns on a risk-adjusted basis while building enduring value through ingenuity. To learn more, visit www.bonaventure.com.

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