15
Branders Bridge Townhomes 1400 BRANDERS BRIDGE ROAD COLONIAL HEIGHTS, VIRGINIA 23834
Branders BridgeTownhomes
1400 BRANDERS BRIDGE ROADCOLONIAL HEIGHTS, VIRGINIA 23834
Table of Contents
03 PROPERTY OVERVIEW
05 FINANCIAL OVERVIEW
07 SALE COMPS
08 LEASE COMPS
10 AREA AMENITIES
11 DEMOGRAPHICS
13 ONE SOUTH COMMERCIAL + TEAM
PRESENTED BY ONE SOUTH COMMERCIAL
RYAN [email protected]
TOM ROSMAN 804.539.3017 [email protected]
3
Property Overview
BRANDERS BRIDGE APARTMENTS
HIGHLIGHTSAddress1400 Branders Bridge RoadColonial Heights, VA 23834
$2,775,000Asking Price
2100-04-0B-003Parcel ID
R-4Zoning
1992Year Built
41Units
2Floors
8Number of Buildings
70,312Total Square Feet
A/C, Cable Ready, Ceiling Fans, Hardwood Floors, Heating, Microwave, Oven, Range, Refrigerator, Washer/Dryer, Washer/Dryer HookupUnits Amenities
Trash Pickup - CurbsideSite Amenities
BUILDING SYSTEMSRefigerator, Dishwasher, Washer/DryerAppliances
Separately MeteredElectrical
Central Air via Heat PumpHeating / Cooling
4
Property Overview (continued)
BRANDERS BRIDGE APARTMENTS
The Branders Bridge townhome-style condominium portfolio consists of 41 two bedroom units, located in the Colonial Heights suburb of Richmond, VA. The sellers have a majority interest in the condo association. All of the units have been extensively renovated in the last two years. The sellers have replaced all of the HVAC units and have renovated the kitchens and baths. Additionally, considerable resources have been invested in upgrading the parking lots, exterior landscaping, and roofs.
Built in a classic colonial style, the units were originally marketed for sale individually and have since evolved into a rental community. Each unit is two stories with a living room, dining area, and kitchen with a half bathroom on the first floor and two bedrooms and a bathroom on the second floor. Each unit includes a rear patio, washer and dryer, dishwasher, and microwave. The appliances are new, as are the heating and air conditioning units (heat pumps with cooling).
The units are all approximately 1,050 square feet which makes Branders Bridge one of the most spacious options in the submarket. The average rents are in the $700 to $725 range, approximately $0.66 to $0.69 per square foot, which offers buyers good rental upside. Tenants pay electricity which also heats and cools the units, and the owner pays for water, sewer, and trash.
With the large units and close proximity to shopping, employment centers and Downtown Richmond, this portfolio offers a stable operating history and an opportunity to significantly improve cash flow.
Current Occupancy 80%8 vacant units recently placed back in service after renovation
Average In Place Base Rent $0.72
High Base Rent $0.78 1/23/17 move in
Low Base Rent $0.65 3/15/17 move in
Monthly water/sewer/trash recovery $25.00 / unit
5 BRANDERS BRIDGE APARTMENTS
Financial OverviewACQUISITION METRICSPurchase Price $2,775,000
$ / Square Foot $65.46
$ / Unit $67,683
Capitalization Rate 8.87%
FINANCING PROJECTIONSLTV 80.00%
Amortization 35 Years
Rate 5.00%
Points & Fees 5%
SELECTED FINANCIAL PERFORMANCE PROJECTIONSLeveraged IRR 24.02%
Cumulative Cash-on-Cash 16.12%
Debt Coverage Ratio 1.83
Debt Yield 11.09%
KEY OPERATING ASSUMPTIONSEconomic Occupancy 89%
Year 1 Effective Rent $0.73
Annual Rent Growth 2%
Vacancy / Delinquency 10%Reduces by 2% annually until 95% stabilization
Loss to Lease 1%
Concessions 1%
Other Income (unit per year) $1,282
Application & Pet Fees, Collections Recoveries, Late Charges, MTM Fees
Annual Contract Expense Growth 2%
Management Fee 4% plus payroll
Cost to turn $500
Utilties $12,198
RE Taxes $1.20/$100 assessed value
CapEx Reserves (unit per year) $250
6 BRANDERS BRIDGE APARTMENTS
Financial OverviewANNUAL OPERATIONS SUMMARYIncome Year 1 % GPIGross Potential Income $369,000
Vacancy ($36,900) -10%
Concessions ($3,690) -1%
Management Fee ($14,760) -4%
Effective Gross Income $313,650
Other Income $52,548 14%
Gross Operating Income $366,198
Expenses Year 1 % GOI
Administration - General $9,000 2%
Advertising $4,200 1%
Insurance $15,336 4%
Property Taxes $26,657 7%
Repairs & Maintenance $12,257 3%
Payroll & Benefits $40,380 11%
Water/Sewer $7,398 2%
Electricity $3,000 1%
Other Utilities $1,800 0%
Total Operating Expenses $120,028 32%
NET OPERATING INCOME $246,170 67%
Debt Service $134,449
Before Tax Cash Flow $111,721
7 BRANDERS BRIDGE APARTMENTS
COLONIAL HEIGHTS201 NEWCASTLE DRIVECOLONIAL HEIGHTS, VA SOLD DATE | AUGUST 2017
SOLD PRICE | $6,150,000
CAP RATE | 6.84%
PRICE PER UNIT | $56,422
UNITS | 109
SALE COMPSSUBJECT PROPERTYBRANDERS BRIDGE APARTMENTS1400 BRANDERS BRIDGE ROAD COLONIAL HEIGHTS, VA PURCHASE PRICE | $2,775,000
CAP RATE | 8%
PRICE PER UNIT | $67,682
UNITS | 41
TERRACE VIEW APARTMENTS202 LAKEVIEW PARK ROADCOLONIAL HEIGHTS, VA SOLD DATE | SEPTEMBER 2015
SOLD PRICE | $4,550,000
CAP RATE | 6.5%
PRICE PER UNIT | $73,387
UNITS | 62
COURTHOUSE GREEN APARTMENTS6417 STATUTE STREETCHESTERFIELD, VA SOLD DATE | AUGUST 2017
SOLD PRICE | $25,300,000
CAP RATE | 6.5%
PRICE PER UNIT | $95,113
UNITS | 266
8 BRANDERS BRIDGE APARTMENTS
COLONY WOODS TOWNHOMES919 LAKEVIEW AVENUECOLONIAL HEIGHTS, VA UNITS | 29
STORIES | 2RENT PER SF | $0.85
VACANCY | 0%
LEASE COMPS
THE OAKS OF DUNLOP FARMS101 OLD OAK LANECOLONIAL HEIGHTS, VA UNITS | 144
STORIES | 2RENT PER SF | $1.05
VACANCY | 2.1%
SUBJECT PROPERTYBRANDERS BRIDGE APARTMENTS1400 BRANDERS BRIDGE ROAD COLONIAL HEIGHTS, VA UNITS | 41
STORIES | 2RENT PER SF | $0.69
VACANCY | 0%
COLONIAL RIDGE2609 MANGOWOOD DRIVECOLONIAL HEIGHTS, VA UNITS | 100
STORIES | 3RENT PER SF | $1.05
VACANCY | 25.0%
COLONIAL HEIGHTS201 NEW CASTLE DRIVECOLONIAL HEIGHTS, VA UNITS | 109
STORIES | 2RENT PER SF | $0.84
VACANCY | 11.0%
9 BRANDERS BRIDGE APARTMENTS
LEASE COMPSLAKEVIEW TERRACE & LAKEVIEW VILLAGE100-141 LAKEVIEW PARK ROADCOLONIAL HEIGHTS, VA UNITS | 131
STORIES | 2RENT PER SF | $0.97
VACANCY | 2.3%
CLEARFIELD APARTMENTS100 CLEARFIELD CIRCLECOLONIAL HEIGHTS, VA UNITS | 144
STORIES | 2RENT PER SF | $0.88
VACANCY | 6.3%
10
Area Amenities
BRANDERS BRIDGE APARTMENTS
Branders Bridge is just minutes from Fort Lee, one of the largest employers in the Tri-Cities area and close to South Park Mall and the shopping it affords. There are numerous employment centers in the immediate area the property is close to I-95.
VIRGINIA STATE UNIVERSITY
SAM’S CLUB
FORT LEE
SOUTHPARK MALL
SOUTHPARK CROSSING
THE CROAKER’S SPOT
WALMART
WAWA
EMPLOYMENT CENTERS DISTANCE TIME
Meadowville Tech Park 11.4 mi 21 mins
Rolls Royce Crosspointe 11.8 mi 17 mins
Amazon Fulfillment Center (Petersburg)
11.1 mi 15 mins
11 BRANDERS BRIDGE APARTMENTS
DemographicsTHE RICHMOND-PETERSBURG METROPOLITAN STATISTICAL AREAThe Richmond MSA is comprised of four cities, 16 counties and one incorporated town. It’s population of more than 1.2 million makes it the 43rd largest MSA in the country and third in Virginia.
*Source: Richmond Economic Development Authority
POSITIVE POPULATION GROWTH
*Source: CoStar
AN ARRAY OF BUSINESSES
12 BRANDERS BRIDGE APARTMENTS
Demographics
*Source: CoStar
SOLID HOME VALUES
DAYTIME EMPLOYMENT
INCREASING HOUSEHOLD INCOME
13
One South CommercialThe neighborhoods of Richmond’s urban core, neglected for decades,
began to show new signs of life. Warehouses became industrially-styled condos, manufacturing plants became artist studios, furniture
stores became hotels and vacant lots became new housing. The people came back as did the festivals and the businesses, both
large and small, and somewhere along the line, old Richmond gave way to RVA.
The development community quickly recognized the public’s desire for walkable communities and began to
blend both commercial uses and residential under the same roof. Property owners who had been
holding on to architecturally significant but blighted properties for decades, now began
to seek advice and advocacy about what was next. It was from these needs that One
South was born.
Blending valuation, modeling and marketing from both the commercial and residential arenas, One South quickly became known for being client-centric, information driven and development savvy. And having access to all of the relevant databases meant not only being able to provide our clients with the most accurate underlying data, but it gave us the ability to push our listings further into the web than our competition.
One South represents a new breed of brokerage that focuses on intelligent leverage to create a better client experience.
13BRANDERS BRIDGE APARTMENTS
14 BRANDERS BRIDGE APARTMENTS
RYAN RILEE
Ryan brings a detailed, solutions-oriented approach to each commercial real estate transaction and has successfully represented a wide range of owners and users from nearly every sector of the business. A Richmond native with a background in institutional real estate management, Ryan advises One South Commercial’s clients on everything from local sub-markets to national capital markets, and is ready and able to tackle anything in between. His wise network of industry contacts and his experience “under the hood” make Ryan a valuable part of the One South Commercial investment sales team.
One South CommercialAgent Team
TOM ROSMAN
Tom Rosman has been brokering investment real estate since the early 1990’s in the Richmond, VA, metro area. He has brought hundreds of transactions to a successful conclusion, including large apartment complexes, apartment buildings in historic neighborhoods, office buildings, retail properties, mixed use buildings, and numerous historic adaptive reuse properties.Tom was one of the first brokers to recognize the transformative changes occurring in many of Richmond’s most architecturally significant but ignored neighborhoods. Having helped place many of the warehouses and other commercial structures in the hands of Richmond’s development community, Tom’s belief in what a property should be was never compromised by the condition it was in. As one of the Founding Partners at One South, Tom heads up the commercial and investment sales for One South Commercial.
Contact One South Commercial
RYAN RILEE 804.690.1482 [email protected]
TOM ROSMAN 804.539.3017 [email protected]
2314 WEST MAIN STREETRICHMOND, VA 23220 ONESOUTHCOMMERCIAL.COM 804.353.0009 [O] | 804.353.0991 [FAX]
DISCLOSUREThe information contained herein is obtained from sources deemed reliable. One South Commercial makes no representations or warranties as to the accuracy of the information herein. The information contained herein is strictly confidential and is intended for the use of the party receiving it from One South Commercial. Recipient acknowledges that it will not reproduce or make any portion of this document available to a third party without the express permission of One South Commercial.
