Federal Capital Partners (FCP) and Kettler Inc. have acquired a multifamily portfolio in the Hampton Roads area of Tidewater, Va., for $87.9 million. The portfolio, purchased from Great Atlantic Management Co., consists of 1,490 garden apartments in seven communities in Hampton, Newport News and Virginia Beach. The communities include:

* Harbours, a 396-unit community in Newport News
* Pines of Green Run, a 300-unit community in Virginia Beach
* Mansards, a 240-unit community in Virginia Beach
* Spinnaker Cove, a 210-unit community in Hampton
* Tall Pines, a 104-unit community in Newport News
* Lucas Creek, a 140-unit community in Newport News
* Camelot, a 100-unit community in Newport News

FCP and Kettler plan to invest $7.7 million to improve these properties, which will be managed by Kettler Management. The company manages nearly 18,000 apartments in 82 locations from New York to the Carolinas.

“This second investment by FCP in Tidewater area real estate reflects our confidence in the underlying fundamentals for this dynamic area of Virginia,” said Alex Marshall, FCP managing partner, in a press release.

“These seven properties, purchased well below replacement cost, fit perfectly with our strategy of acquiring well-built assets in high-quality locations where we believe we can improve operating performance through aggressive management and targeted capital improvements,” added Marshall.

A privately held real estate investment company based in Washington, D.C., FCP has acquired interests in more than $2 billion in assets since 2003. FCP invests in residential and commercial assets throughout the Mid-Atlantic region.

Over the past two years, FCP has been one of the most active investors in the Washington, D.C. region, amassing more than $1 billion in real estate assets. Through its discretionary commingled private equity funds (FCP Fund I and FCP Realty Fund II), FCP invests directly in core plus, value-add, opportunistic and development properties.

Founded by Robert Kettler in 1977, Kettler is among the largest private real estate and property management companies based in the D.C. metro area and one of the nation’s top 20 multifamily developers.

McLean, Va.-based Kettler has delivered more than 5 million sq. ft. of commercial space, more than 50,000 homes in 25 master-planned communities and several mixed-use communities.

Great Atlantic Management, headquartered in Virginia Beach, Va., was represented in the transaction by Cushman & Wakefield.