With two acquisitions, including the property management arm of a prolific Petersburg developer, Richmond-based Dodson Cos., Is expanding its business in the Tri-Cities while expanding its reach into Northern Virginia.
The real estate company said on Tuesday it had acquired Plum Street Partners, the property management division of developer Dave McCormack Waukeshaw Development, as well as Patriot Properties, a management company based near Leesburg.
The transactions closed on November 15 and November 1, respectively. The conditions were not disclosed.
The Patriot acquisition includes the management of 175 single-family properties and 3,300 multi-family units in 35 communities that Patriot managed through its Homeowners Association (HOA) management division.
Plum Street operated 398 multi-family units which are now part of Dodson’s portfolio.
Owner Duke Dodson said the deals take his business to new territory while also returning it to its roots in Petersburg.
“One of my first clients when I started the company in 2007 was in Petersburg, so we know the market well,” said Dodson, adding that the company currently manages around 1,000 units there.
Dodson said the Patriot deal was made thanks to the ties the two companies have established at industry events over the years.
“When the Patriot sellers decided they wanted to sell, they contacted us, we discussed it and came to an agreement,” he said. “We wanted to expand north of Fredericksburg, N. Virginia, and this was a great opportunity for that. “
The acquisitions are the latest on the property management side of Dodson, which previously took over Polaris Property Management in Sarasota, Florida in mid-2020.
“Our growth plan is basically from Virginia to Florida,” Dodson said. “We would like to continue to connect the dots between here and Florida.”
With Plum Street, Dodson said he heard that McCormack was interested in selling this part of his business so he could focus more on real estate development.
A few weeks before the deal, McCormack’s Waukeshaw Development increased its workload in Petersburg with the $ 3 million purchase of the old Virginia Trunk & Bag Co. factory buildings on Wythe Street.
“I’m a huge Dave McCormack fan. I think he’s a creative genius, who’s done a lot of really cool projects, so we can’t wait to partner with him in the future as he continues to develop more things, ”said Dodson. “We would love to manage it.
McCormack said Dodson was selected over other potential buyers when his team decided it was time to offload Plum Street.
“We started our own property management business in Petersburg about 15 years ago due to the lack of quality options downtown. So much has changed here over the past few years and we felt it was time to put that aside and focus on our core real estate business, ”he said. “We looked at several management companies, but found Dodson to be the best solution both professionally and personally. “
The Waukeshaw-owned properties involved in the deal include the 73 Bosco Apartments in Petersburg and the 50 Hopewell Lofts in Hopewell.
The management of one of Waukeshaw’s previous projects, the 223 units of Mayton Transfer Lofts, is also part of the acquisition. Now owned by Capital Square, which bought it three years ago for $ 21 million, the property also provides a link to that company, Dodson said.
“Thanks to these acquisitions, great relationships are formed, like Dave McCormacks around the world. Choosing a great client like Capital Square is a big deal for us, ”he said.
Dodson said the latest agreements bring the number of employees at the company from 127 to about 150. According to a statement, the company operates more than 5,220 single-family homes and apartments in Central and Northern Virginia, and more than 8 000 units under its association management division, which has more than doubled its number of owner doors in the past year.
The company said just over a quarter of its management portfolio consists of low-income rental housing.
The company’s commercial division manages 2.3 million square feet, up from 1.7 million square feet at the end of 2020.
In Richmond, Dodson recently landed a contract with the Bookbindery Building at 2201 W. Broad St., adding its nearly 63,000 square feet to its business management portfolio. The division also added 64,000 square feet of flexible industrial space in Virginia Beach.
Earlier this year, the company added to its real estate holdings in Richmond with its $ 3.22 million purchase of 23 downtown Morton’s Apartments. The company also bought the neighboring Atrium on Broad building for $ 4.8 million in February.
Meanwhile, the company is moving forward with its ongoing $ 25 million mixed-use development at Colonial Beach. Construction has started to be vertical on the first phase of the project, which will include 11 townhouses, 12 single-family homes, a swimming pool and a putting green. The multi-phased development is also expected to include a hotel, office and commercial space adjacent to Colonial Beach Town Hall.