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Multifamily

1844 W Grace Street

1844 W Grace St, Richmond, VA 23220

Listing Price: $1,100,000

Cap Rate
4.56%
Number of Units
6
Occupancy
95.0%
Price/Unit
$183,333
Price/Gross SF
$219.47
Gross SF
5,012

Investment Overview

Marcus & Millichap is pleased to offer the Offering Memorandum for 1844 W Grace St in Richmond. The subject property consists of six (6) units in Richmond’s prestigious Fan neighborhood. The asset sits atop .10 acres and has a unit mix of Studios (3), One Bedroom (2) and Two Bedroom (1) units. The Grace St corridor has seen a significant uptick in the past few years with Virginia Commonwealth University pushing demand on rental units in close proximity to the University. The subject property has two units which were in the process of being renovated, but were stalled due to an unexpected medical incident. We have estimated the current cost of finishing the renovations to get these units back online to be approximately $50,000. This investment will take an initial capital expenditure, but the upside in the renovations will add an estimated $100,000 to the value of this asset. An investor can secure financing through an institution who would lend at a market loan-to-value (LTV) on the post-remodeled price. Another opportunity for an owner to increase cash flow is to instill a “utility fee” of approximately $95 a month per unit to offset the costs of the water/sewer and heating costs currently burdened by the landlord. This has been increasingly common in the Richmond market to offset costs associated with master meters for utilities. The rents are historically below market and adding the utility fee would not impact occupancy due an increased tenant burden. Richmond, the capital of the Commonwealth of Virginia, is centrally located in the state and steeped in history and politics. As a metropolitan area the city nurtures a culture rich in education, the arts, and economic growth. Home to six Fortune 500 company headquarters including: Altria, Dominion Resources and West Rock. Richmond attracts many employees and employers alike. The city employs over 130,000 and is home to over 33,000 students. The Universities flourish in Richmond, notably VCU, which is designated as one of the fastest growing universities in the country with a 40% growth rate over the past 10 years. Richmond has seen an impressive growth in average rental rates – especially in the upper to mid-range asset class. Year-over-year rents have increased at an average rate of 3.18% trailing only that of low to mid-range assets at 3.55%. Occupancy has also remained high and consistently sits around 95% year-over-year since 2012.

Investment Highlights

  • Variety of Studios, one and two bedroom units in Richmond's Fan District
  • Value-add opportunity in Richmond's most desirable neighborhood
  • Walking distance to the new Whole Foods Development and Virginia Commonwealth University

Exclusively Listed By

Listing Price: $1,100,000

Cap Rate
4.56%
Number of Units
6
Occupancy
95.0%
Price/Unit
$183,333
Price/Gross SF
$219.47
Gross SF
5,012

Investment Highlights

  • Variety of Studios, one and two bedroom units in Richmond's Fan District
  • Value-add opportunity in Richmond's most desirable neighborhood
  • Walking distance to the new Whole Foods Development and Virginia Commonwealth University

Investment Overview

Marcus & Millichap is pleased to offer the Offering Memorandum for 1844 W Grace St in Richmond. The subject property consists of six (6) units in Richmond’s prestigious Fan neighborhood. The asset sits atop .10 acres and has a unit mix of Studios (3), One Bedroom (2) and Two Bedroom (1) units. The Grace St corridor has seen a significant uptick in the past few years with Virginia Commonwealth University pushing demand on rental units in close proximity to the University. The subject property has two units which were in the process of being renovated, but were stalled due to an unexpected medical incident. We have estimated the current cost of finishing the renovations to get these units back online to be approximately $50,000. This investment will take an initial capital expenditure, but the upside in the renovations will add an estimated $100,000 to the value of this asset. An investor can secure financing through an institution who would lend at a market loan-to-value (LTV) on the post-remodeled price. Another opportunity for an owner to increase cash flow is to instill a “utility fee” of approximately $95 a month per unit to offset the costs of the water/sewer and heating costs currently burdened by the landlord. This has been increasingly common in the Richmond market to offset costs associated with master meters for utilities. The rents are historically below market and adding the utility fee would not impact occupancy due an increased tenant burden. Richmond, the capital of the Commonwealth of Virginia, is centrally located in the state and steeped in history and politics. As a metropolitan area the city nurtures a culture rich in education, the arts, and economic growth. Home to six Fortune 500 company headquarters including: Altria, Dominion Resources and West Rock. Richmond attracts many employees and employers alike. The city employs over 130,000 and is home to over 33,000 students. The Universities flourish in Richmond, notably VCU, which is designated as one of the fastest growing universities in the country with a 40% growth rate over the past 10 years. Richmond has seen an impressive growth in average rental rates – especially in the upper to mid-range asset class. Year-over-year rents have increased at an average rate of 3.18% trailing only that of low to mid-range assets at 3.55%. Occupancy has also remained high and consistently sits around 95% year-over-year since 2012.

Exclusively Listed By

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