How Bonaventure Is Striking A Balance In Housing Affordability, Creating New Investment Capabilities

With the multifamily market showing signs of softening, more firms are holding tight and waiting to see where the market goes. Others, however, are ready to get their hands dirty and seize opportunities as they arise.

The ability to be nimble and think quickly are essential components to make deals work — especially as interest rates continue to rise, construction costs remain elevated and lending requirements become more stringent. 

Being flexible and agile in a competitive market is something that Bonaventure, a vertically integrated commercial real estate company, is no stranger to. 

“More than 60 years ago, my family owned a significant portion of land in Northern Virginia,” said Dwight Dunton III, founder and CEO of Bonaventure. “They had the choice to either sell the land or find the right partners to build a multifamily asset. They chose the latter and partnered with a local developer to build this asset that would end up being the foundation for Bonaventure.” 

Dunton said that after the property was no longer managed with the values and stewardship his family had  envisioned, he raised capital and purchased the multifamily asset through his new CRE firm, Bonaventure, in 1999.  

“We knew there were great opportunities ahead if we thought creatively,” he said. “Since 1999, we have grown and evolved into one of the region’s top multifamily developers, in addition to being recognized as one of the leading HUD developers in the nation.”

Headquartered in Alexandria, Virginia, Bonaventure has more than $2.3B of assets under management and $500M in HUD loans — making it one of the nation’s top HUD borrowers. With an emphasis on multifamily design, development, management, construction and investment, the firm also manages more than 6,100 apartment units across the mid-Atlantic and Southeast.

Dunton said that thinking creatively in the multifamily space is where Bonaventure excels. The team conducts operations and strategizes according to its core values of accountability, growth, impact, reputation, collaboration and attitude. These “driving factors” motivate the team to deliver quality results, Dunton said.

“We became an integrated alternative asset management firm out of the need to provide real estate solutions,” he said. “We knew that abiding by these core principles was a sure way to deliver the best results for all of our shareholders and stakeholders.” 

He said that thanks to decades of following these values, Bonaventure is experiencing growth. The firm is looking at acquisition deals, third-party property management opportunities and joint venture/land acquisitions, as well as new investment opportunities. 

“We have 10 new communities scheduled to open in the next three years,” Dunton said. “One project we’re working on is in Spotsylvania, Virginia, where we decided to partner with a local mall developer and owner to bring a brand-new multifamily complex to the community. We developed, designed and are currently constructing the complex.” 

He added that this new development will cater to the modern demands of renters and bring a renewed sense of live-work-play to the Spotsylvania area. Bonaventure will also manage the asset as well as pre-leasing efforts.

In addition, expanding its portfolio into the Southeast is a long-term goal for the firm. Bonaventure is evaluating opportunities in this region by closely following key trends such as migration patterns and examining what locations may be experiencing housing shortages. 

“We’re fortunate to be in a business that provides a basic need,” he said. “Everyone needs food, clothing and shelter, and it’s an honor when someone calls a Bonaventure property their home. We’re focused on providing great housing with great value.”

The idea of great value is something that Bonaventure instills in each one of its multifamily projects, he said. The industry must strike a balance between providing housing that’s affordable to prospective residents as well as providing great returns. This is not an easy feat, as more than 40% of U.S. renters are considered cost-burdened, meaning they spend more than 30% of their paycheck on monthly rent.

“We hear a lot about housing affordability in the news,” Dunton said. “There’s affordable housing with a capital ‘A’ that are government-funded programs. But there’s also the idea of affordable housing with a lowercase ‘a’ that can potentially fill the gap between government-funded programs and the high rent costs that many renters are experiencing. We are working to provide housing that’s accessible and affordable to residents across the nation.”

This article was produced in collaboration between Bonaventure and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.