activity id z0600007 foxtree portfolio

Activity ID Z0600007 Offering Memorandum

Foxtree Portfolio

F OX T R E E P O R T F O L I O

Altay UzunTeam Lead

Hampton Roads OfficeTel: (757) 777-3737Fax: (757) 493-3953

[email protected] VA 0225214405

N icholas BalogAssociate



Justin FergusonAssociate



Chandler Mor tAgent Candidate


[email protected] Coming Soon

E XC LU S I V E LY L I S T E D BY

O F F I C E S N A T I O N W I D E A N D T H R O U G H O U T C A N A D A

WWW.MARCUSMILLICHAP.COM

N O N - E N D O R S E M E N T & D I S C L A I M E R N OT I C ECO N F I D E N T I A L I T Y & D I S C L A I M E RThe 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. © 2017 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N OT I C EMarcus & 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.

A L L P R O P E R T Y S H O W I N G S A R E BY A P P O I N T M E N T O N LY.

P L E A S E CO N S U LT YO U R M A R C U S & M I L L I C H A P AG E N T F O R M O R E D E TA I L S .

Chateau Terrace Apartments, Foxtree Apartments, Ridgewood Terrace Apartments

EXCLUSIVELY LISTED BY:

FOXTREE PORTFOLIOMartinsville, NC

TABLE OF CONTENTS________

EXECUTIVE SUMMARYSection 1

Property Highlights ... 2Investment Highlights ... 4

Property Images ... 6

LOCATION SUMMARYSection 2

Local Map ... 14Regional Map ... 15

Location Highlights ... 16Local Attractions ... 18

Local Development ... 19City Overview ... 20

FINANCIAL SUMMARYSection 3

Financial Overview ... 26

COMPARABLE SUMMARYSection 3

Sales Comparables ... 34

MARKET SUMMARYSection 4

Market Overview ... 40Demographic Analysis ... 42

PRESENTED BY

1

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate

Investment Services of Florida, Inc. © 2018 Marcus & Millichap ACT ID Y0600073

EXECUTIVE SUMMARYFOXTREEPORTFOLIO 1

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► Value-Add Opportunity

► 450 New Jobs Within Ten Miles Entering Market

► Guaranteed Occupancy in Several Units

► 11.74% Cash-on-Cash Return

► 10 Yr. Levered IRR of 23.79%

I N V E S T M E N T H I G H L I G H T S

M A R K E T D R I V E R S► 18 New Development Projects Since 2014

► 2.5 Miles from Downtown Martinsville

► Easy Access to Fortune 500 Company - WestRock

► Within 1 Days Drive from 60% of the U.S. Population

► Host to 3 Major NASCAR Events Every Year

U N I T A M E N T I T I E S

► 61 Well Maintained Units

► Central Heating and Air Conditioning in All Units

► Ample Off-Street Parking

► Large Floor Plans

► Full Functioning Kitchen

► Private Pool

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I N V E S T M E N T O V E R V I E WMarcus & Millichap is pleased to present the exclusive offering memo-randum for The Foxtree Portfolio, located in Martinsville, VA. The Subject Property consists of 61 market-rate units spread across three properties. Property mix includes; Chateau Terrace Apartments, Foxtree Apartments, and Ridgewood Terrace Apartments. Each property can be accessed by Interstate 54, a primary traffic artery through the entire state of Virginia and a dominant route through The City of Martinsville.

The Foxtree Portfolio offers potential buyers the opportunity to purchase a well-maintained asset with tremendous upside potential. As is, the proper-ty offers potential investors a cash-on-cash return upwards of 11% and an equally lucrative IRR. By improving current operating efficiencies, con-trolling vacancy rates, and building on the rents a purchaser can acquire a stable coupon with long term upside in appreciation.

The portfolio consists of (60) well-maintained two-bedroom units and a sin-gle one-bedroom flat. Due to the concentrated unit-mix and a convenient location near primary roadways, major employments drivers, and Down-town Martinsville, this unit mix caters well to the demographic composition of the sub-market. The Subject Properties come equipped with spacious lay-outs, full functioning kitchens, hardwood flooring, on-site laundry facilities, a private pool, and charming, residential neighbors.

CEO Mark Heath announced that “Between July 1, 2014 and June 30 of this year, 18 economic development announcements took place in Henry Coun-ty, of which five were new industries and 13 were expansions of existing industries. Those 18 announcements resulted in 1,196 new jobs and a total annual payroll of $30,603,382.” Since then, new development initiatives have continued to form in multiple corporate platforms throughout aquaculture, chemical, retail, and manufacturing industries. Downtown Martinsville recently announced the expansion of; Eastman Chemical Company ($11.7 Million), Virginia Mirror Company and Virginia Glass Products ($3.8 Million), and Bassett Furniture Store ($1.5 Million). Introduction of Blue Ridge Aqua-culture, the largest indoor fishery company in the world and the first feed mill in the area, marks a milestone in the development of indoor aquacul-ture for both The City of Martinsville and Blue Ridge Aquaculture. This $5 million investment will provide the area with several mid-to-low level jobs and authenticate Martinsville as a successful commercial corridor for further ground-breaking developments to come.

I N V E S T M E N T S U M M A R Y

FOXTREE PORTFOLIO

Property Address1515 E Church St. Ext, 50 Foxtree Dr.,

and 642 Eggleston Falls Rd.

Zoning MF

Number of Units 61

Number of Buildings/Stories 3/2

Year Built 1975

Lot Size 10.24 Acres / 446,054 sf

Type of Ownership Fee Simple

Parking 1:1 Ratio

Utilities: Water / Gas Owner Paid

Utilities: Electric Owner Paid

Loan Amount $1,443,750

Loan Type New

Interest Rate 4.75%

Amortization 30 Years

Loan Term 10 Years

Loan to Value 75%

Debt Coverage Ratio 1.57

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LOCATION SUMMARYFOXTREEPORTFOLIO 2

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LOCAL MAP

REGIONAL MAP

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642 EGGLESTON FALLS RD APARTMENTS

NEW COLLEGEINSTITUTE

PRESTON RIDGEWINERY

SMITH RIVERSPORTS COMPLEX

MARTINSVILLESPEEDWAY

50 FOXTREE DRAPARTMENTS

1515 E CHURCH STAPARTMENTS

PATRIOT CENTERINDUSTRIAL PARK

NEW COLLEGEINSTITUTE

SMITH RIVERSPORTS COMPLEX

LO C A L AT T R AC T I O N S

► Martinsville Speedway

► VA Museum of Natural History

► Piedmont Arts

► Martinsville Antique Mall

► Prestin Ridge Winery

► Martin Valley Brewing Co.

► Outdoorsmen Park & ATV Trails

► Dick & Willie Passage Rail Trail

► Smith River Sports Complex

► Beaver Creek Plantation

► Philpott Lake

► Commonwealth Crossing

Business Centre

► Patriot Center Industrial Park

► Commonwealth Crossing

Centre for Advanced Training

► Eastman Chemical

► WestRock

► Monogram Food Solutions

► Springs Global US, Inc

► Radial

► Hanes Brands

► Nautica

► New College Institute

E V E N T S & L E I S U R E

PA R K S & R E C R E AT I O N

CO M M U N I T Y D E V E LO P M E N T

J O B M A R K E T

CO M M U N I T Y D E V E LO P M E N T B U S I N E S S C E N T R E

C E N T R E F O R A D VA N C E D T R A I N I N G

I N D U S T R I A L PA R K

► 25,889 SF Building

► 10,553 SF Office Space

► 15,336 SF High Bay Training Space

► Located on Tract 1 in the Commonwealth Crossing

Industrial Park

► Advanced Manufacturing Training Facility

► 1,000 acre Industrial Park located in Henry Co.

► Five graded, shovel ready sites and a 95,500 SF Shell

Building are all available

► The park offers an abundance of water, an electric

substation, natural gas, redundant fiber, and its own fire

station

► Occupied by companies such as Arconic, Eastman

Chemical, Monogram Food Solutions, and Nautica

► Located near US-220 South, at the Virginia/North

Carolina state line

► Tract 1 is 120 pad acres / Tract 4 is 55 pad acres

► Adjacent to the Norfolk Southern Railway Mainline

► 30 minutes to the Greensboro (NC) International Air-

port and the new FedEx Mid-Atlantic Hub

► Full Utilities Included

► Located in a New Markets Tax Credit Zone (NMTC)

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The Martinsville-Henry County area offers the perks of both a lively metro and the regional

intamacy of a small town. The Subject Properties’ prime locations enjoy

an array of recreational opportunities, maritime

activities, outdoor attrations,a historical cultural,

diverse shopping and dining experiences, and charming local

communities to residents and visitors, alike.

local stuff

local studd

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The Martinsville area is currently experiencing

the lowest unemployment rate the city has seen in over a decade. Over the last ten years The City’s unemployment rate has

dropped over 2%, outperforming both the state of Virginia and the

entire United States which have increased by 1%.



FINANCIAL SUMMARYFOXTREEPORTFOLIO 3

17

RENT ROLL SUMMARYFINANCIAL ANALYSIS

OPERATING STATEMENT

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FINANCIAL ANALYSISNOTES

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FINANCIAL ANALYSISPRICING DETAIL

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GROWTH RATE PROJECTIONS

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FINANCIAL ANALYSISCASH FLOW

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COMPARABLE SUMMARYFOXTREEPORTFOLIO 4

##

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MARKET AVERAGES CLOSE OF ESCROW SALE PRICE PRICE/UNIT PRICE/SF UNIT COUNT

Oakmont - 1502 Sherwood Dr, Reidsville, NC 06/13/2016 $2,325,000 $48,438 $1.44 48

Canterbury Place - 1851 Amos St, Reidsville NC 03/29/2017 $1,450,000 $36,250 $1.26 40

6775 Old Franklin Tpke, Glad Hill, VA 03/29/2017 $1,500,000 $31,250 $1.33 48

Westchester Square - 431 Hermitage Dr, Danville, VA 07/20/2016 $2,500,000 $32,895 $1.12 76

S A L E S CO M PA R A B L E S

MARKET AVERAGES

Price per Unit $37,208

Price per Square Feet $36.68

Cap Rate 8.27%

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FOXTREE PORTFOLIO

Sale Price $1,925,000

Year Built 1975

Unit Count 61

Price/Unit $31,557

Price/SF $31.73

Cap Rate 8.07%

Year Built 1997

Cap Rate 7.57%

Year Built 2000

Cap Rate Commercial/Retail

Year Built 1976

Cap Rate 8.25%

Year Built 1975

Cap Rate 9.00%

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#SUBJECT PROPERTY NAME

MARKET AVERAGES NUMER OF UNITS 1 BEDROOM 2 BEDROOM 3 BEDROOM

Wellington Manor - 16 Molly Circle 64 $475 $600 $0

Stafford Square - 1807 E Church Street Ext. 77 $475 $600 $650

Northview Gardens - 755 Stultz Road 80 $484 $535 $562

R E N T CO M PA R A B L E S

MARKET AVERAGES

1 Bedroom Rent $478

2 Bedroom Rent $578

3 Bedroom Rent $606

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UNIT MIX UNIT COUNT SQ FT

1 Bedroom 24 750

2 Bedroom 40 850

3 Bedroom 0 0FOXTREE PORTFOLIO RENT SQ FT RENT/SF

Number of Units 61 0 0

1 Bedroom $465 975 $.48

2 Bedroom $489 1,000 $.49


1 Bedroom 4 850

2 Bedroom 70 1,000

3 Bedroom 3 1,200


1 Bedroom 21 570

2 Bedroom 49 722

3 Bedroom 10 800

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MARKET SUMMARYFOXTREEPORTFOLIO 5 P

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C I T Y O V E R V I E WLike most rural cities formed during the Revolutionary War, the framework for the economy relied on the tobacco industry, but with the emergence of the 21st century a drastic shift in rede-velopment and repositioning of the city has created a booming business district with vast corporate platforms looking for start-up and relocation opportunities. The local economy has shows sign of mass prosperity from city development and funding inititives to higher education mergers. EDC recieved a three year grant for $5,700,000 million to support large scale investment, new job creation, and tax base increases. Patrick Henry Com-munity College recently announced its partnership with global industry and educational experts, Festo Didactic and the Na-tional Coalition of Certification Centers (NC3), to offer the Festo Industry 4.0 Certification Program (FI4.0CP) for students and incumbent workers interested in Advanced Manufacturing and Industry careers.

M U LT I FA M I LY O V E R V I E W

► The local economy is best known for its manufactoring and

aerospace industries, but advanced film production and food

processing suppliers are immensely important to the local econo-

my, as well. Respectively, 30 percent of the world’s dyed film and

35 million pounds of raw meet are produced from the Martins-

ville-Henry area annually.

► Between July 1, 2014 and June 30, 2017, eighteen economic

development projects took place in Henry County, which resulted

in 1,196 new jobs and a total annual payroll of $30,603,382.

► Current redevelopment and reposition intitives include

1,726 acres of commercial acquisition, 450 additional jobs, and

$22,000,000 of investment back into the city.

► The Martinsville-Henrico area is currently experiencing lowest

unemployment rate the city has seen in over a decade.

E CO N O M Y

44.732017

MEDIAN AGE:

U.S. Median:37.8

$49,493 2017 AVERAGE

HOUSEHOLD INCOME:

U.S. Median:$56,300

67K2017

POPULATION:

Growth2017-2022*:1.0%

12.6K2017

HOUSEHOLDS:

5.6%Growth

2017-2022*:

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D E M O G R A P H I C S H I G H L I G H T S

67,236

$49,493

$92,283

MARTINSVILLE-HENRY COUNTY POPULATION

AVERAGE HOUSEHOLD INCOME

HOUSING VALUE

POPULATION 1 Miles 3 Miles 5 Miles§ 2022 Projection

Total Population 1,938 13,523 28,532§ 2017 Estimate

Total Population 1,892 13,695 28,989§ 2010 Census

Total Population 1,968 14,062 29,968§ 2000 Census

Total Population 2,038 15,213 32,098§ Daytime Population

2017 Estimate 2,382 20,814 37,566HOUSEHOLDS 1 Miles 3 Miles 5 Miles§ 2022 Projection

Total Households 919 5,988 12,585§ 2017 Estimate

Total Households 870 5,975 12,615Average (Mean) Household Size 2.06 2.19 2.24

§ 2010 CensusTotal Households 900 6,124 13,043

§ 2000 CensusTotal Households 825 6,373 13,485

Growth 2015-2020 5.63% 0.22% -0.24%HOUSING UNITS 1 Miles 3 Miles 5 Miles§ Occupied Units

2022 Projection 919 5,988 12,5852017 Estimate 980 6,958 14,730Owner Occupied 444 3,518 7,764Renter Occupied 427 2,457 4,851Vacant 110 983 2,115

§ Persons In Units2017 Estimate Total Occupied Units 870 5,975 12,6151 Person Units 42.76% 36.60% 34.34%2 Person Units 30.92% 33.15% 34.07%3 Person Units 11.72% 14.34% 15.16%4 Person Units 9.31% 9.51% 10.02%5 Person Units 3.56% 4.23% 4.08%6+ Person Units 1.84% 2.14% 2.34%

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles§ 2017 Estimate

$200,000 or More 0.60% 1.92% 1.68%$150,000 - $199,000 0.27% 1.12% 1.72%$100,000 - $149,000 3.86% 6.14% 5.88%$75,000 - $99,999 5.92% 7.57% 7.94%$50,000 - $74,999 13.78% 16.28% 15.80%$35,000 - $49,999 17.84% 18.12% 17.36%$25,000 - $34,999 8.70% 10.90% 12.17%$15,000 - $24,999 22.19% 15.97% 16.48%Under $15,000 26.84% 21.99% 20.95%

Average Household Income $37,765 $49,537 $49,493Median Household Income $26,006 $35,938 $35,329Per Capita Income $18,278 $22,083 $21,884POPULATION PROFILE 1 Miles 3 Miles 5 Miles§ Population By Age

2017 Estimate Total Population 1,892 13,695 28,989Under 20 22.68% 23.83% 23.57%20 to 34 Years 14.70% 15.66% 16.06%35 to 39 Years 4.49% 5.08% 5.01%40 to 49 Years 11.05% 12.04% 12.18%50 to 64 Years 20.24% 21.42% 21.55%Age 65+ 26.83% 21.98% 21.63%Median Age 47.63 44.82 44.73

§ Population 25+ by Education Level2017 Estimate Population Age 25+ 1,371 9,729 20,585Elementary (0-8) 11.76% 6.84% 6.54%Some High School (9-11) 13.25% 10.73% 11.48%High School Graduate (12) 29.21% 29.80% 30.50%Some College (13-15) 25.17% 25.18% 24.11%Associate Degree Only 7.91% 7.37% 8.44%Bachelors Degree Only 7.46% 12.78% 11.46%Graduate Degree 4.27% 6.23% 6.17%

§ Population by Gender2017 Estimate Total Population 1,892 13,695 28,989Male Population 44.52% 46.56% 46.83%Female Population 55.48% 53.44% 53.17%

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E X C L U S I V E L Y L I S T E D B Y

FOXTREE PORTFOLIO

Altay UzunTeam Lead



N icholas BalogAssociate



Justin FergusonAssociate


[email protected] License VA 0225225369

Chandler Mor tAgent Candidate


[email protected] License Coming Soon

activity id z0600007 foxtree portfolio

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