Berkadia Arranges Sale and Financing of 396-unit Multifamily Asset in Newport News, Virginia
Newport News, Virginia – January 20, 2026 – Berkadia, a distinguished leader in the commercial real estate sector, announced today that it has arranged the sale and financing of Compass at City Center, a 396-unit, garden-style multifamily community located in Newport News, Virginia.
Senior Managing Director Drew White, Managing Director Carter Wood, and Director Cole Carns of Berkadia’s Richmond office represented the seller, C-III Capital Partners, along with Drucker & Falk. A joint venture between Penzance – a fully integrated real estate owner, operator, developer, and fund manager – and Kettler acquired the property on December 16, 2025.
Senior Managing Director Patrick McGlohn, Managing Director Brian Gould, Senior Director Hunter Wood, Vice President Patrick Cunningham and Associate Director Natalie Hershey of Berkadia’s DC Metro secured an acquisition loan on behalf of Penzance and Kettler.
“Compass at City Center offered investors the opportunity to acquire a well-located, institutional-quality asset in the heart of the Newport News/Hampton Roads market,” commented White. “With high barriers to entry, a limited pipeline of new supply and a deep, stable renter base supported by major employers, the property is well positioned for sustained rent growth and long-term value creation. Its strong operating performance and additional upside through targeted enhancements made it a compelling investment.”
“The financing reflected the durability of the asset and the strength of its location within one of the Peninsula’s most established live-work-play environments,” added Patrick McGlohn, Senior Managing Director at Berkadia. “Lenders responded favorably to the property’s condition, location, and quality of sponsorship, allowing us to structure a solution that aligned with the buyer’s long-term business plan.”
“Demand for well-located, institutional-quality rental housing remains strong across the Mid-Atlantic, particularly in markets with diverse employment bases and limited new supply,” said Jacob Rosenberg, Senior Vice President of Investments, at Penzance. “Compass at City Center fits well within that profile, offering a walkable, mixed-use setting in the heart of Newport News. We look forward to driving long-term value alongside Kettler.”
Located at 501-A Waters Edge Drive, Compass at City Center was built in 1985 and comprises 33 three-story buildings situated on a 25-acre site. The community offers a mix of one-, two-, and three-bedroom floor plans averaging 995 square feet.
Compass at City Center is situated within one of the Peninsula’s most desirable urban-suburban environments – a walkable, master-planned setting surrounded by approximately one million square feet of Class A office space and more than 230,000 square feet of high-end retail and dining. The property is within walking distance of City Center at Oyster Point, the region’s premier live-work-play destination, and minutes from major employment anchors including Jefferson Lab, Huntington Ingalls Industries, Riverside Health System, and Canon America. The property is 15 minutes from Newport News/Williamsburg International Airport, 45 minutes from Virginia Beach, and one hour from Richmond.
Berkadia Arranges Sale & Financing of Compass at City Center Apartments in Newport News | Yieldpro
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