After a few recent near misses, Tack is under contract on a new acquisition. It is an Opportunity Zone acquisition of three properties in Danville, VA, which gives investors the potential to owe no capital gains taxes on the investment. Opportunity Zones were created to encourage real estate investments that substantially improve existing properties or build new ones, in exchange for tax benefits.

This investment will significantly improve the properties by updating key systems, including electrical, plumbing, roofs, and HVAC, and modernizing the units. Danville is experiencing economic tailwinds, with a planned battery factory expected to add about 2,000 jobs and a rocket motor factory expected to add about 1,000, alongside 1.2 percent year-over-year population growth in 2025 according to the University of Virginia Weldon Cooper Center.

New deals added to the pipeline ticked up in February, but the number screened fell as Tack secured the Danville portfolio. Tack is still pursuing one or two deals but has paused underwriting new opportunities to focus on diligence.

January’s strong leasing velocity at the Gardens at Manchester continued into February, and the property is close to starting a waitlist. This includes newly renovated units, many with large open floor plans and high ceilings. 1710 Lofts ended February at 100 percent occupancy, though some vacancies are expected in March.