With a pair of acquisitions, including the property management arm of a prolific Petersburg developer, Richmond-based Dodson Cos. is increasing its activity in the Tri-Cities while also extending its reach to Northern Virginia.
The real estate firm announced Tuesday that it has acquired Plum Street Partners, the property management division of developer Dave McCormack’s Waukeshaw Development, as well as Patriot Properties, a management company based near Leesburg.
The deals closed Nov. 15 and Nov. 1, respectively. Terms were not disclosed.
The Patriot acquisition includes management of 175 single-family properties and 3,300 multifamily units in 35 communities that Patriot managed through its homeowner association (HOA) management division.
Plum Street managed 398 multifamily units that are now part of Dodson’s portfolio.
Owner Duke Dodson said the deals bring his company into new territory while also circling it back to its roots in Petersburg.
“One of my first clients back in the day when I started the company in 2007 was down in Petersburg, so we’re familiar with the market,” Dodson said, adding that the company currently manages about 1,000 units there.
Dodson said the Patriot deal came about through connections made between the two companies at industry events over the years.
“When the sellers of Patriot decided they wanted to sell, they reached out to us, and we discussed it and worked out a deal,” he said. “We’d been wanting to expand north of Fredericksburg into Northern Virginia, and this was a great opportunity for that.”
The acquisitions are the latest on the property management side for Dodson, which previously picked up Polaris Property Management in Sarasota, Florida, in mid-2020.
“Our growth plan is basically Virginia to Florida,” Dodson said. “We’d like to continue to connect the dots between here and Florida.”
With Plum Street, Dodson said he’d heard that McCormack was interested in selling that part of his company so he could focus more on real estate development.
Weeks before the deal, McCormack’s Waukeshaw Development added to its workload in Petersburg with its $3 million purchase of the former Virginia Trunk & Bag Co. factory buildings on Wythe Street.
“I’m a big fan of Dave McCormack. I think he’s a creative genius, done a lot of really cool projects, so we look forward to partnering with him in the future as he continues to develop more stuff,” Dodson said. “We’d love to manage it.”
McCormack said Dodson was selected over other prospective buyers when his team decided the time was right to unload 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 in the last few years, and we felt it was time to hand that off and focus on our core real estate business,” he said. “We vetted several management companies but felt that Dodson was the best fit professionally and personally.”
Waukeshaw-owned properties involved in the deal include the 73-unit Bosco apartments in Petersburg, and the 50-unit Hopewell Lofts in Hopewell.
Management of one of Waukeshaw’s earlier projects, the 223-unit Mayton Transfer Lofts, is also part of the acquisition. Now owned by Capital Square, which purchased it three years ago for $21 million, the property also provides a connection to that company, Dodson said.
“Through these acquisitions come great relationships, like the Dave McCormacks of the world. Picking up a great client like Capital Square is a big deal for us,” he said.
Dodson said these latest deals increase the company’s staff count from 127 to about 150. According to a release, the company manages over 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 homeowner door count over the past year.
The company said just over a quarter of its management portfolio consists of lower-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 picked up a contract with the Bookbindery Building at 2201 W. Broad St., adding its nearly 63,000 square feet to its commercial management portfolio. The division also has added 64,000 square feet of flex industrial space in Virginia Beach.
Earlier this year, the company added to its Richmond real estate holdings with its $3.22 million purchase of the 23-unit Morton’s Apartments downtown. The company also purchased the nearby Atrium on Broad building for $4.8 million in February.
Meanwhile, the company is progressing on its $25 million mixed-use development underway in Colonial Beach. Construction has started going vertical on the project’s first phase, which will include 11 townhomes, 12 single-family homes, a pool and a putting green. The multi-phase development is planned to also include a hotel, office and retail space adjacent to Colonial Beach’s Town Hall.