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Bonaventure Executes Custom UPREIT Strategy at Attain Downtown East

By Mari Nicholson

Bonaventure-Executes-Custom-UPREIT-Strategy-at-Attain-Downtown-East-1

Bonaventure has completed an UPREIT transaction that transfers ownership of Attain Downtown East, a 121-unit multifamily property in Norfolk, Va., to Bonaventure Multifamily Income Trust, or BMIT, a non-traded real estate investment trust sponsored by the firm.

The contribution value was not disclosed, though Bonaventure said the property was valued at fair market value by an independent MAI appraisal.

The UPREIT transaction, facilitated by a call option initiated by BMIT, relied upon Section 721 of the Internal Revenue Code, allowing the property’s previous owners to exchange their real estate interest for ownership units in the REIT’s operating partnership rather than trigger a taxable sale. Section 721 UPREIT structures allow real estate owners to defer capital gains taxes on appreciated assets by exchanging property for partnership units rather than selling outright.

Attain Downtown East was originally acquired by Bonaventure in 2023 for $42 million as a 1031 exchange replacement property for a private investment client. The UPREIT contribution gives BMIT 100% ownership of the asset.

Located in the heart of Norfolk, Va., Attain Downtown East – formerly known as Monticello Station – features 121 residential apartments averaging more than 1,100 square feet, along with 32,866 square feet of ground-floor retail. Tenants include Buffalo Wild Wings, 7-Eleven, and Sushi King. The property carries a 3.11% fixed-rate HUD note that matures in 2061.

“By structuring the initial 1031 investment and ultimately executing the UPREIT contribution into BMIT, we were able to deliver a strong outcome for our partners while bringing a high-quality asset fully into the REIT,” said Jimmy Parker, director of investments at Bonaventure. He noted that the firm is currently working on several similar transactions to meet growing demand for tax-efficient exits.

Bonaventure is an operator-led multifamily real estate firm with approximately $2.8 billion in assets under management and a 26-year operating history. The firm provides development, asset management, and property management services for high-net-worth individuals, registered investment advisers, and family offices with a focus on properties in the Mid-Atlantic and Southeast regions.

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