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Bidders lured by big chunk of Richmond real estate for sale (again)

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Posted at 12:11 PM, Mar 20, 2015
and last updated 2015-03-20 12:16:03-04

RICHMOND, Va. — Almost three months after an auction was supposed to decide the fate of a chunk of Richmond real estate, new bidders are continuing to come out of the woodwork.

Yet another buyer has stepped forward as the high bidder for imprisoned former developer Billy G. Jefferson’s two real estate portfolios, River City Renaissance and River City Renaissance III, consisting of 29 apartment buildings with 440 units throughout the Fan and Museum District.

The Davis Cos., operating as DIV River City Renaissance LLC, has placed a $37.35 million bid on the two portfolios, knocking out another potential buyer, Bellona Arsenal Farm Associates, which had previously held the highest bid for RCR III.

A Boston-based real estate investment firm, Davis is prepared to pay $30.825 million for RCR and $6.525 million for RCR III, which alone consists of six buildings.

That total offer is more than $500,000 higher than the original credit bid by U.S. Bank, the noteholder on the properties, at a highly anticipated December auction.

The bid offered for RCR III is about $100,000 more than what Bellona Arsenal placed last month.

And Davis just barely beat out yet another high bidder right before a federal bankruptcy hearing Thursday. Neighborhood Properties, a Charlottesville real estate investment firm, had made an offer of $37.15 million, $200,000 shy of Davis’ bid.

Continue reading on RichmondBizSense.com.