FAWN LAKE APARTMENTS -...

FAWN LAKE APARTMENTS44 Fawn Lake Lane • Palmyra, VA 22963

SMGM U L T I F A M I L Y

FAWN LAKE APARTMENTS

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Dominion 1,453

Thomasville Furniture 270

Fork Union Military Academy 180

Giant Food Inc 142

County of Fluvanna 100

National Filter Service Inc 85

Comprehensive Home Care Inc 70

Tenaska Virginia Partners LP 58

Buckingham Slate Company LLC 48

Hi-Test Laboratories Inc 48

JLW Exterior Trim Inc 44

Tapscott Brothers Logging 40

DEMOGRAPHICS

3-Miles 6-Miles 9-Miles

2016 Estimate Pop 1,394 4,672 10,959

2016 Census Pop 1,298 4,402 10,485

2016 Estimate HH 516 1,828 4,221

2016 Census HH 483 1,727 4,044

Median HH Income $50,215 $49,644 $49,166

Per Capita Income $25,270 $26,496 $26,096

Average HH Income $67,585 $67,258 $67,531

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

8 2BR 1.5BA 893

8 Total 7,144

VITAL DATA

Price $800,000 CURRENT YEAR 1

Down Payment 20% / $160,000 CAP Rate 6.59% 7.47%

Loan Amount $640,000 GRM 9.75 9.00

Loan Type Proposed NewNet Operating Income

$52,681 $59,746

Interest Rate / Amortization 5.00% / 30 YearsNet Cash Flow After Debt Service

7.16% / $11,453 11.57% / $18,519

Price/Unit $100,000 Total Return 13.06% / $20,895 17.78% / $28,444

Price/SF $111.98

Number of Units 8

Rentable Square Feet 7,144

Year Built 1978

Lot Size 7.3 acre(s)

2


#

OFFERING SUMMARY

▪ Renovated in 2010

▪ Hardwood floors and large backyard

▪ Room for rent increases

▪ Strong tenant history

▪ Low competition

▪ Surrounded by over 4 acres of land

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present this Offering Memorandum for Fawn Lake Apartments located at 44Fawn Lake Lane in Palmyra, Virginia. The property consists of 8 two-bedroom, two-bathroom units at 800 SFeach. Built in 1978, the apartments are just outside of the town of Fork Union on 7.28 acres. Renovation of theapartments was completed in 2010 bringing updated features to each unit. The property is situated halfwaybetween Charlottesville and Richmond and is just minutes south of Lake Monticello.

The town of Fork Union, VA is best known for the Fork Union Military Academy with approximately 400 studentsand 180 faculty & staff. Fork Union is considered one of the top all male college preparatory high schools in thestate and focuses on leadership development along with academics. Fawn Lake Apartments were originally builtby the school to house employees of the Academy. After the sale to private ownership, the tenants base iscomposed of working families, retirees, and teachers. A short 20 minute drive north towards Interstate 64 is LakeMonticello - a very popular destination on weekends and in the summer. To the south is the north James Riverand an hour north is Lake Anna.

According to the Bureau of Labor Statistics, Palmyra has a 3.3% unemployment rate which is below the VirginiaAverage of 3.9%. The largest employers are Fluvanna County School Board, Fluvanna Correctional Center,Fluvanna County, and Fork Union Military Academy.

INVESTMENT OVERVIEW

3


#

OFFERING SUMMARYPROPERTY OVERVIEW

The rear yard backs up to Fawn Lake and is surrounded

by woods on either side.

The 8 unit townhomes of Fawn Lake are situated outside the rural town ofFork Union, VA in Palmyra. Fork Union is located halfway betweenRichmond and Charlottesville and roughly 20 minutes off Interstate 64 onstate route 15. This exit off Interstate 64 has been the center of recentconstruction with new retail and industrial sites under development,including a Walmart Distribution Center, timber services, andtransportation companies.

Built in 1978 and completely renovated in 2010, all 8 units have been wellmaintained and have a strong occupancy record. Renovations werethorough and touched every room. Hardwood floors were refinished,kitchens and bathrooms were completely replaced, heat pumps wereinstalled, doors and windows were replaced, the parking lot was repaved,and a laundry room with two washers and driers was added. Theapartments are surrounded by 7.28 acres in two parcels. The parcel theapartments sit on is 4 acres zoned B-1 while the adjoining parcel is 3.28acres zoned A-1. The A1 zoning allows agricultural uses. This parcel isunimproved and is included in the asking price.

4


#

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Amount $640,000

Loan Type Proposed New

Interest Rate 5.00%

Amortization 30 Years

Loan Term 10 Years

Loan to Value 80%

Debt Coverage Ratio 1.28

EXISTING FINANCING

Interest Rate 5.00%

Amortization 30

Original Term 10

Due Date 8/1/2027

Current Monthly Payment ($3,436)

Prepayment Penalty $0

Lender Name 44044

THE OFFERING

Property Fawn Lake Apartments

Price $800,000

Property Address 44 Fawn Lake Ln,Palmyra,VA

SITE DESCRIPTION

Year Built/Renovated 1978

Rentable Square Feet 7144

5

REGIONAL MAP


6

LOCAL MAP


7

AERIAL PHOTO


8

PROPERTY PHOTOS


9

PROPERTY PHOTOS


10

PROPERTY PHOTOS


11

PROPERTY PHOTOS


12

FINANCIAL ANALYSIS


RENT ROLL SUMMARY

13

FINANCIAL ANALYSIS


OPERATING STATEMENT

14

FINANCIAL ANALYSIS


PRICING DETAIL

15

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage offices

$5.1 billion total

national

volume in 2016

Access to more

capital sources

than any other

firm in the

industry

Optimum financing solutions to

enhance value

Our ability to enhance buyer

pool by expanding finance

options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender progress,

insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,651

debt and equity

financings

in 2016

ACQUISITION FINANCING


16

FINANCIAL ANALYSIS


GROWTH RATE PROJECTIONS

17

FINANCIAL ANALYSIS


CASH FLOW

18

8


SALES COMPARABLES MAP

19


(SUBJECT)

Wilson Blvd Apartments

Randolph Macon

Apartments

1664 Graves Mill Rd

445 Cherry Ave

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

PROPERTY NAMEFAWN LAKE APARTMENTS

SALES COMPARABLES

20

Avg. $72.70Avg. $75.68

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

$160.00

$180.00

$200.00

44 FawnLake Ln

Wilson BlvdApartments

RandolphMacon

Apartments

1664 GravesMill Rd

445 CherryAve

Average Price Per Square Foot

Avg. $67,750

Avg. $90,625

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

44 FawnLake Ln


RandolphMacon

Apartments

1664 GravesMill Rd

445 CherryAve

Average Price Per Unit

Avg. .00Avg. .00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

44 FawnLake Ln


RandolphMacon

Apartments

1664 GravesMill Rd

445 CherryAve

Average GRM

Avg. 8.00%Avg. 7.77%

0.0

0.8

1.6

2.4

3.2

4.0

4.8

5.6

6.4

7.2

8.0

44 FawnLake Ln


RandolphMacon

Apartments

1664 GravesMill Rd

445 CherryAve

Average Cap Rate

SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


21

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type

Offering Price: $800,000 8 2BR 1.5BA

Price/Unit: $100,000

Price/SF: $111.98

CAP Rate: 6.59%

GRM: 9.75

Total No. of Units: 8

Year Built: 1978

Underwriting Criteria

Income $77,976 Expenses $25,295

NOI $52,681 Vacancy ($4,104)

44 FAWN LAKE LN44 Fawn Lake Ln, Palmyra, VA, 22963

1

Close Of Escrow: 8/31/2016

Sales Price: $838,487

Price/Unit: $69,874

Price/SF: $76.17


Year Built: 1983

WILSON BLVD APARTMENTS2265 Wilson Blvd, Winchester, VA, 22601

Close Of Escrow: 12/14/2016

Sales Price: $1,050,000

Price/Unit: $65,625

Price/SF: $69.22

CAP Rate: 8.00%


Year Built: 1979

2

RANDOLPH MACON APARTMENTS210 Virginia Ave, Front Royal, VA, 22630

PROPERTY NAME

MARKETING TEAM


SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


22

SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type

On Market 80 2 Bdr 1 Bath

List Price: $775,000

Price/Unit: $96,875

Price/SF: $77.50


Year Built: 1970


Income $26,000

3

1664 GRAVES MILL RD1664 Graves Mill Rd, Lynchburg, VA, 24502

4

Units Unit Type

On Market 8 2 Bdr 1.5 Bath

List Price: $675,000

Price/Unit: $84,375

Price/SF: $73.85

CAP Rate: 7.77%


Year Built: 1967


Income $77,544 Expenses $25,995

NOI $52,509

445 CHERRY AVE445 Cherry Ave, Waynesboro, VA, 22980

8


RENT COMPARABLES MAP


(SUBJECT)

16 Hatchechubee Rd

310 Gold Mine Rd

4

7

8

9

11

20

12

14

15

16

17

13

18

10

1

2

23

PROPERTY NAME

MARKETING TEAM


RENT COMPARABLES

rentpropertyname1

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

24

YEAR BUILT: 1978

rentpropertyname1rentpropertyaddress1

Unit Type Units SF Rent Rent/SF

2BR 1.5BA 8 893 $855 $0.96

Total/Avg. 8 893 $855 $0.96

44 FAWN LAKE LN44 Fawn Lake Ln, Palmyra, VA, 22963

YEAR BUILT: 1990

1


3 Bdr 2 Bath 1 1,350 $1,300 $0.96

Total/Avg. 1 1,350 $1,300 $0.96

16 HATCHECHUBEE RD16 Hatchechubee Rd, Palmyra, VA, 22963

2

YEAR BUILT: 2007


3 Bdr 2 Bath 1 1,144 $1,150 $1.01

Total/Avg. 1 1,144 $1,150 $1.01

310 GOLD MINE RD310 Gold Mine Rd, Palmyra, VA, 22963

PROPERTY NAME

MARKETING TEAM


DEMOGRAPHICS

Source: © 2016 Experian

Created on July 2017

POPULATION 3 Miles 6 Miles 9 Miles

▪ 2021 Projection

Total Population 1,398 4,772 11,457

▪ 2016 Estimate


▪ 2010 Census


▪ 2000 Census


▪ Daytime Population

2016 Estimate 1,378 4,371 7,765

HOUSEHOLDS 3 Miles 6 Miles 9 Miles

▪ 2021 Projection

Total Households 523 1,881 4,434

▪ 2016 Estimate


Average (Mean) Household Size 2.56 2.59 2.59

▪ 2010 Census


▪ 2000 Census


Growth 2015-2020 1.36% 2.90% 5.05%

HOUSING UNITS 3 Miles 6 Miles 9 Miles

▪ Occupied Units

2021 Projection 523 1,881 4,434

2016 Estimate 595 2,097 4,864

Owner Occupied 389 1,410 3,344

Renter Occupied 127 418 877

Vacant 78 269 642

▪ Persons In Units

2016 Estimate Total Occupied Units 516 1,828 4,221

1 Person Units 23.06% 22.48% 22.15%

2 Person Units 37.02% 36.93% 37.15%

3 Person Units 16.09% 16.47% 16.99%

4 Person Units 13.37% 13.51% 13.36%

5 Person Units 6.78% 6.95% 6.54%

6+ Person Units 3.49% 3.67% 3.81%

HOUSEHOLDS BY INCOME 3 Miles 6 Miles 9 Miles

▪ 2016 Estimate

$200,000 or More 3.96% 3.87% 3.61%

$150,000 - $199,000 2.20% 1.79% 1.97%

$100,000 - $149,000 10.43% 10.94% 11.91%

$75,000 - $99,999 15.06% 14.27% 13.60%

$50,000 - $74,999 18.56% 18.78% 18.09%

$35,000 - $49,999 15.29% 15.29% 15.75%

$25,000 - $34,999 8.22% 9.30% 10.51%

$15,000 - $24,999 9.96% 9.60% 9.07%

Under $15,000 16.32% 16.16% 15.49%

Average Household Income $67,585 $67,258 $67,531

Median Household Income $50,215 $49,644 $49,166

Per Capita Income $25,270 $26,496 $26,096

POPULATION PROFILE 3 Miles 6 Miles 9 Miles

▪ Population By Age

2016 Estimate Total Population 1,394 4,672 10,959

Under 20 23.45% 23.78% 23.84%

20 to 34 Years 15.98% 15.76% 15.76%

35 to 39 Years 4.90% 5.19% 5.29%

40 to 49 Years 12.72% 13.24% 13.64%

50 to 64 Years 23.87% 23.75% 23.58%

Age 65+ 19.06% 18.28% 17.89%

Median Age 44.97 44.39 44.13

▪ Population 25+ by Education Level

2016 Estimate Population Age 25+ 989 3,302 7,745

Elementary (0-8) 5.42% 6.86% 7.96%

Some High School (9-11) 7.99% 9.29% 10.83%

High School Graduate (12) 35.03% 34.48% 34.25%

Some College (13-15) 16.88% 17.57% 18.62%

Associate Degree Only 10.61% 8.79% 7.45%

Bachelors Degree Only 13.21% 13.03% 12.52%

Graduate Degree 10.25% 9.23% 7.43%

▪ Population by Gender

2016 Estimate Total Population 1,394 4,672 10,959

Male Population 49.69% 49.61% 48.77%

Female Population 50.31% 50.39% 51.23%

25

Income

In 2016, the median household income for your selected geography is

$48,920, compare this to the US average which is currently $54,505.

The median household income for your area has changed by 27.63%

since 2000. It is estimated that the median household income in your

area will be $54,711 five years from now, which represents a change

of 11.84% from the current year.

The current year per capita income in your area is $26,390, compare

this to the US average, which is $29,962. The current year average

household income in your area is $67,208, compare this to the US

average which is $78,425.

Population

In 2016, the population in your selected geography is 801. The

population has changed by 14.43% since 2000. It is estimated that the

population in your area will be 803.00 five years from now, which

represents a change of 0.25% from the current year. The current

population is 49.61% male and 50.39% female. The median age of the

population in your area is 44.13, compare this to the US average

which is 37.68. The population density in your area is 63.69 people per

square mile.

Households

There are currently 313 households in your selected geography. The

number of households has changed by 20.38% since 2000. It is

estimated that the number of households in your area will be 316 five

years from now, which represents a change of 0.96% from the current

year. The average household size in your area is 2.58 persons.

Employment

In 2016, there are 91 employees in your selected area, this is also

known as the daytime population. The 2000 Census revealed that

51.01% of employees are employed in white-collar occupations in this

geography, and 53.31% are employed in blue-collar occupations. In

2016, unemployment in this area is 4.51%. In 2000, the average time

traveled to work was 33.00 minutes.

Race and Ethnicity

The current year racial makeup of your selected area is as follows:

66.01% White, 28.98% Black, 0.14% Native American and 0.36%

Asian/Pacific Islander. Compare these to US averages which are:

70.77% White, 12.80% Black, 0.19% Native American and 5.36%

Asian/Pacific Islander. People of Hispanic origin are counted

independently of race.

People of Hispanic origin make up 3.70% of the current year

population in your selected area. Compare this to the US average of

17.65%.

PROPERTY NAME

MARKETING TEAM


Housing

The median housing value in your area was $211,487 in 2016,

compare this to the US average of $187,181. In 2000, there were 205

owner occupied housing units in your area and there were 54 renter

occupied housing units in your area. The median rent at the time was

$423.

Source: © 2016 Experian

DEMOGRAPHICS

26

8


DEMOGRAPHICS

27

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to

be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other

person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to

provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest

in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.

Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the

income or expenses for the subject property, the future projected financial performance of the property, the size and

square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or

asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or

the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its

occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from

sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the

information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and

makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.

All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap

is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â© 2017 Marcus & Millichap. All rights

reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in

this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation

with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any

agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing

tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.


Palmyra, VA

ACT ID Y1000003

P R E S E N T E D B Y

Nick BalogAssociate – Richmond Virginia OfficeNational Multi-Housing Group804-205-5008 office804-512-2641 mobileVA license number [email protected]://www.marcusmillichap.com/NicholasBalog

David Andrew Smith MBA RASenior Associate – Southern Virginia OfficeNational Multi -Housing Group757-359-8834 mobileVA license number [email protected]://www.marcusmillichap.com/DavidSmith

mailto:[email protected]

mailto:[email protected]

Date post:	08-Apr-2019
Category:	Documents
Upload:	doankien
View:	215 times
Download:	0 times

FAWN LAKE APARTMENTS -...

Documents