INVESTMENT HIGHLIGHTS
1.
2.
Proven Value-Add Opportunity: Proven value-add play where 64 renovated units are achieving exceptional in-place premiums ranging from $86 to $283/unit depending on floorplan type, with 64 classic units remaining with potential submarket upside premium of $200 to $300/unit
3.
Accelerating Recent Lease Rate Trends: Strong organic rent growth trends where recent two and five rents are averaging 9.1% (+$110) greater than the Property’s average in-place rent, respectively.
Below Market In-Place Debt, Recently Sized for a Supplemental: Property features an in-place agency loan with accretive below-market fixed rate of 5.13% and full-term I/O maturing in March 2033. Also recently sized for a co-terminus supplemental loan with full-term I/O that would increase proceeds by $925,000, resulting in an overall blended rate of 5.25%
EXECUTIVE SUMMARY
The Berkadia Real Estate Advisors team is pleased to present for sale District at Williamsburg (the “Property”). District at Williamsburg comprises 128 Class B multifamily units located in historic Williamsburg, VA, offering the best of small-town life with the vibrancy of a cultural center. The Property immensely benefits from being immediately surrounded by the region’s most critical economic drivers including the College of William & Mary (9,500+ students in 2022, 5K jobs supported) and Colonial Williamsburg, the largest outdoor educational living museum in the country that draws an estimated 6 to 8 million visitors annually.
The region as a whole is anchored by strong healthcare, tech, government and tourism industry presences, and the sheer magnitude of the various military installations throughout the region provides a floor in the form of a constant supply of renters. The Hampton Roads region has been booming over the past several years as military spending continues to increase, eclipsing $27.1B in 2023 alone, and poised for further growth in 2024.
The Property’s story is best characterized by ownership’s proven renovation strategy across 68 units that are achieving in-place premiums ranging from $86 to $283 per unit, depending on floorplan type. The Property comprises 60 remaining classic units that can be renovated, allowing investors to capitalize on the exceptionally wide rent spreads where Class A comps average $701 per unit greater and Class B comps average $224 per unit greater.
Current ownership’s excellent stewardship of the Property, coupled with the Property’s exceptional lease rate performance and solid curb appeal, positions this opportunity as one of Hampton Roads’ most coveted multifamily opportunities.
The Property is being offered on a debt assumption basis with favorable terms that includes a fixed interest rate of 5.13% and full term I/O that matures in March 2033.
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Property Overview
• 128 Total Units
• Built/Renovated: 1972/2023
• Submarket: Williamsburg
• Average Unit Size: 903 SF
• Total SF: 115,584 SF
• In-Place Rent/Unit: $1,212
• In-Place Rent/SF: $1.24
• Recent 2 Rent/Unit: $1,322
• Recent 2 Rent/SF: $1.46
• Occupancy (as of 12/20/23): 93.8%
THE ASSET
GALLERY
3802 Towne Point Rd, Portsmouth, VA 23703
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200 Mal Mae Court, Williamsburg, VA 23185
903
AVG Unit SF
115,584
NRA
128
UNITS
The Opportunity
The Asset
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Norfolk
207 Granby Street,
Suite 201,
Norfolk, VA 23510
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Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
4.
Surging Lease Trade-Outs: 17.1% increase (+$233) on new leases and 10.2% increase (+$117) on renewals overall all leases signed in the T6 period”.
5.
Charming, Small-Town Williamsburg Location: Perennially recognized Williamsburg location that blends the best of small-town charm with the vibrancy of a cultural center, surrounded by key economic drivers–College of William & Mary (9,500+ students, 5K jobs) and Colonial Williamsburg (six to eight million visitors annually). Ranked #2 for “The Best Small Towns in the South 2022” by Southern Living.
4.
Surging Lease Trade-Outs: 17.1% increase (+$233) on new leases and 10.2% increase (+$117) on renewals overall all leases signed in the T6 period.
5.
Charming, Small-Town Williamsburg Location: Perennially recognized Williamsburg location that blends the best of small-town charm with the vibrancy of a cultural center, surrounded by key economic drivers–College of William & Mary (9,500+ students, 5K jobs) and Colonial Williamsburg (six to eight million visitors annually). Ranked #2 for “The Best Small Towns in the South 2022” by Southern Living.
Miles Drinkwalter
Vice President
Multifamily Housing
757.652.9597
miles.drinkwalter@berkadia.com
Brian Gould
Managing Director
Multifamily Housing
917.297.7551
brian.gould@berkadia.com
Patrick McGlohn
Senior Managing Director
Multifamily Housing
703.987.0874
patrick.mcglohn@berkadia.com
MORTGAGE BANKING
Drew White
Senior Managing Director
Multifamily Housing
202.294.6976
drew.white@berkadia.com
Carter Wood
Senior Director
Multifamily Housing
804.350.2109
carter.wood@berkadia.com
Cole Carns
Director
Multifamily Housing
804.878.1258
cole.carns@berkadia.com
INVESTMENT SALES
Miles Drinkwalter
Vice President
Multifamily Housing
757.652.9597
miles.drinkwalter@berkadia.com
Brian Gould
Managing Director
Multifamily Housing
917.297.7551
brian.gould@berkadia.com
Patrick McGlohn
Senior Managing Director
Multifamily Housing
703.987.0874
patrick.mcglohn@berkadia.com
MORTGAGE BANKING
Drew White
Senior Managing Director
Multifamily Housing
202.294.6976
drew.white@berkadia.com
Carter Wood
Senior Director
Multifamily Housing
804.350.2109
carter.wood@berkadia.com
Cole Carns
Director
Multifamily Housing
804.878.1258
cole.carns@berkadia.com
INVESTMENT SALES
Hunter Wood
Senior Director
Multifamily Housing
804.513.6243
hunter.wood@berkadia.com
Hunter Wood
Senior Director
Multifamily Housing
804.513.6243
hunter.wood@berkadia.com
© 2023 Berkadia Proprietary Holding LLC
Berkadia® is a trademark of Berkadia Proprietary Holding LLC
Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. This website is not intended to solicit commercial mortgage loan brokerage business in Nevada.
In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing
• In-Place Rent/Unit: $1,212
• In-Place Rent/SF: $1.34
• Recent 2 Rent/Unit: $1,322
• Recent 2 Rent/SF: $1.46
• Occupancy: 93.8% (as of 12/20/23)