“The Richmond multifamily market continued its strong run through the end of 2021 with effective rents reaching all-time highs. Solid rent growth and strong absorption levels have become mainstays in the local apartment market. The greater MSA features a healthy pipeline of new supply. Significant liquidity targeting the multifamily sector will likely result in high transactional volume in 2022 despite strong indications of rising interest rates.”
Charles Wentworth | Executive Vice President
Richmond’s effective rental rate experienced a 12.1% increase year over year closing the quarter at $1,274 per unit. Goochland’s two class A apartment complexes topped the market with the highest rent per unit at $1,846 per unit. While all of Richmond’s submarkets experienced positive year-over-year rent growth, two-thirds saw positive double-digit changes.
Multifamily capital markets had the best quarter on record. 17 properties were sold totaling $789 million. The Flats at West Broad Village sold for $111 million, or $327,000 per door.
A handful of redevelopment projects were announced. Willow Circle was proposed and would convert 3 Willow Lawn office buildings into 330 apartment units. An industrial property at 953 Meyers St was sold for $7.9 million. The 2-acre Scotts Addition property is also slated for conversion to multifamily.