A local real estate investment firm closed its largest transaction to date with the addition of a nearly 30-home portfolio.
Cava Capital, led by principal Frank Cava, purchased 29 rental houses in Richmond and Henrico County in a portfolio sale for just under $3 million. The transaction, which Cava said is his firm’s first portfolio deal, closed Feb. 22.
The seller was Kings Crest LLC, an entity owned by developer and businessman David Dagenhart Jr., who’s been lightening his real estate portfolio of late. In December, his 23-unit Glenwood Hill Townhomes in Church Hill was sold to a local investor group for $1.3 million.
Cava described the purchase as a different approach for his firm, which he said primarily has focused on individual property sales since starting in Charlottesville 10 years ago. It moved to Richmond in 2014.
“We saw it as a dual-play position,” Cava said. “Some of them we’re going to immediately put back on the market through fix and flip, and then some of them we’re going to hold as long-term rentals.”
Cava described the purchase as significant for his firm, equating in value to about 10 percent of the 213 transactions it closed last year. He said it brought in just over $18 million in revenue from purchases and sales in 2017.
“We’re now pretty well-balanced,” he said. “We have a po rtfolio of rentals that’s north of 200 units, we do fix and flips, and we buy parcels.”
The purchase brings the firm’s property count to 160, Cava said. Recent purchases have included the former Good Shepherd Baptist Church building at 1200 N. 28th St. in Church Hill. The building is planned to become a multifamily property.