multifamily market report | 1

Multifamily Market Report | 1

2 | Hampton Roads

CBRE is pleased to present the Hampton Roads Multifamily Market

Report, the most relevant sales, rental, and submarket information.

Produced by Peyton Cox, Calvin Griffith, and CBRE Research, this report

was assembled by local experts to empower decision making and

inform those interested in multifamily in the Hampton Roads Metro.

This report compiles research from various in-house and third party

data sources to dissect the market at a granular level.

Data contributions from this publication were sourced from:

- CBRE Research - Axiometrics

- CoStar - Real Capital Analytics

- CBRE Econometric Advisor - U.S. Bureau of Labor Statistics

CBRE consistently leads the U.S. market with multifamily investment

sales totaling $32.3 billion in 2019 (Source: Real Capital Analytics).

CBRE’s integrated service platform, speed to market, and site-specific

knowledge provides clients with unparalleled results and ultimately the

best value for their real estate.

Because every piece of real estate is unique, we welcome any inquiries

and the opportunity to deliver market research specific to your asset.

For a market analysis on your property or

more information contact::

Peyton Cox Calvin Griffith

CBRE Virginia | Multifamily CBRE Virginia | Multifamily

PREFACE


Executive Summary .………………. 4

Richmond Market Overview ……… 5

Select Recent Transactions ….…….. 6

Development Pipeline .…………….. 7

Employment Overview …………….. 8

Please contact us with any questions.

CALVIN GRIFFITH Vice President CBRE Multifamily T +1 804 401 4018 M +1 703 881 6549 [email protected]

PEYTON COX Vice President CBRE Multifamily T +1 804 401 4017 M +1 804 895 3402 [email protected]

JARED ALCORN Senior Research Analyst Southern Virginia T +1 804 401 4014 M +1 540 553 2210 [email protected]

4 | Hampton Roads

3.28% VACANCY

+.31% Change Year-Over-Year

$1,119 Per Month Average

+2.39% Year-Over-Year

Hampton Roads, named for its natural waterway

access, is centrally located on the East Coast and

uniquely positioned to strategically serve the United

States as one of the largest military and logistic

centers in the country. Its geographic strength has

provided a stable job base to the region for

decades over a variety of sectors including

defense, shipping, manufacturing and

healthcare. In recent years, Hampton Roads has

intentionally diversified its economy, attracting new

industries, fresh talent and outside investment.

With a unified focus, Hampton Roads has

revitalized its tourism industry, become a leader in

off-shore renewable energies, and attracted the

next generation of entrepreneurs. Hampton

Roads is one of the fastest growing markets in the

country for attracting millennial talent. In addition

to its economic momentum, the region leads the

country in infrastructure investment and is

underway on the transformative $5.1 billion

highway and tunnel expansion which will unlock

Hampton Roads’ economic potential and further

improve the quality of life. Its natural geographic

advantages coupled with the region’s progressive

focus continue to propel Hampton Roads to new

heights, attracting new companies and residents

from the Northeast corridor and uncovering an

attractive secondary market in the midst of

transformation.

INVENTORY

113,000 Units

PIPELINE

2,410 Units Transacted in

H1 2020

6,007 Units Proposed

KEY STATISTICS

MARKET TRENDS

AVG. CAP RATE

6.1% 2020

3,168 Units Under Construction

SALES

SUBMARKETS TO WATCH

Newport News, Chesapeake, Norfolk

EXECUTIVE SUMMARY

103,000 Students Entrolled in over 12 Colleges/Universities

3.1% Population Growth in Hampton Roads MSA

903,000 Labor Force

$95.2B Gross Revenue Production (18% of State GRP)

LOOKING FORWARD

RENT


Investment volume in the Hampton Roads region diminished in the

first half of 2020, largely due to the economic uncertainty

surrounding the Coronavirus pandemic. However, while total

transaction volume is down 30% from the first half of 2019 ($361

million in H1 2019), the total number of transactions increased

20% in H1 2020 (21 transactions in H1 2020). The Newport News

submarket saw an uptick in sales, accounting for 45% of the total

transaction volume for the region in the first half of the year. The

single largest transaction was Hamilton Zanze’s purchase of Indigo

19 (Virginia Beach), a 196-unit mid-rise property built in 2013,

which was sold by a JV between Harmony Investments and Spy

Rock Real Estate Group for $41,500,000.

TRANSACTIONS

HR AVERAGE CAP RATE & PRICE PER DOOR

2019 YE H1 2020

6.2% CAP RATE

$109K AVG. PRICE PER UNIT

49 TOTAL SALES

6.1% CAP RATE

$106K AVG. PRICE PER UNIT

21 TOTAL SALES

HR SALES & VOLUME

6 | Hampton Roads

HAMPTON ROADS INTERSTATE IMPROVEMENTS(2025 COMPLETION)

8 | Hampton Roads

RECENT TRANSACTIONS

ARBORETUM PLACE

Units 184

Sale Price $ 20,446,923

Price/Unit $ 114,527

Owner/Buyer SREIT

Seller Lakeside Cap Advisors

Date Feb 13

FALCON POINT APARTMENTS

Units 64

Sale Price $ 6,575,000


Owner/Buyer Seminole Trail Properties

Seller Runnymede Corp

Date May 7

KINGSTOWNE I & II

Units 384

Sale Price $ 39,000,000


Owner/Buyer Kingstown Milrose LLC

Seller BAF Associates Inc

Date Jan 16

NEWPORT TOWERS

Units 135


Price/Unit $ 68,889

Owner/Buyer Bluerise Group

Seller Newport News Luxury Apartments

Date Feb 28

SILVER HILL AT ARBORETUM

Units 123

Sale Price $ 13,220,249


Owner/Buyer SREIT

Seller Lakeside Cap Advisors

Date Feb 13

BRITTANY PLACE APARTMENTS

Units 148

Sale Price $ 16,950,000


Owner/Buyer Levco Realty Group

Seller Affordable Housing Corporation

Date Jun 11

THE VILLAGES AT CITY CENTER

Units 116

Sale Price $ 11,600,000


Owner/Buyer Levco Realty Group

Seller BAF Associates Inc

Date Jan 14

PELHAM PLACE

Units 74


Price/Unit $ 81,621

Owner/Buyer Cedar Grove Capital

Seller Oliver Lawrence

Date Feb 28

WESLEYAN COURT APARTMENTS

Units 112

Sale Price $ 11,500,000


Owner/Buyer Wesleyan Apartment Associates

Seller Affordable Housing Corporation

Date Mar 13

COTTAGE TRLS AT CULPEPPER LNDNG

Units 183

Sale Price $ 23,905,561


Owner/Buyer Steadfast Apartment REIT

Seller Steadfast Apt REIT III

Date Mar 6

INDIGO 19

Units 196

Sale Price $ 41,500,000


Owner/Buyer Hamilton Zanze & Co

Seller Harmony Investments

Date Jan 14

MARINA POINT

Units 104


Price/Unit $ 88,942

Owner/Buyer Marina Apartments LLC

Seller Frank T Ellett

Date Jan 16

REGENCY AT LONGHILL

Units 224

Sale Price $ 26,250,000


Owner/Buyer Regency at Longhill Apartments LLC

Seller Philip Richardson Co Inc

Date Feb 28

WOODLANDS AT OYSTER POINT

Units 152


Price/Unit $ 60,921

Owner/Buyer AOZPCREI Woodlands LLC

Seller United Prop Assocs

Date Jan 29


# Property Name Status Units Est. Completion Owner/Developer

1 High Street View Under Construction/Lease-Up 223 9/1/2021 Commonwealth Properties

2 The Pearl at Marina Shores Under Construction/Lease-Up 200 12/1/2020 Signature Management

3 3800 Acqua at Bridgeport I Under Construction/Lease-Up 288 8/1/2020 Beco Asset Management

4 Helix Under Construction/Lease-Up 133 8/1/2020 Summit Pointe Realty

5 Pinewell Station Under Construction/Lease-Up 145 10/1/2020 The Breeden Company

6 Lumen Under Construction/Lease-Up 300 1/1/2021 Craig Davis Properties

7 Lexington Place I Under Construction 72 7/1/2021 Pennrose

8 Bennett's Creek Commons Under Construction 144 5/1/2021 Joey Corporation

9 Coastal 61 Under Construction 244 4/1/2021 The Franklin Johnston Group

10 Eastwyck Crossing Under Construction 240 5/1/2021 Coleman Holdings

11 The Apartments at Kelton Station Under Construction 204 6/1/2021 Denstock Real Estate Investments

12 Monroe Gates Under Construction 162 2/1/2021 The Whitmore Company

13 Twenty Seven Atlantic Under Construction 266 11/1/2021 Armada Hoffler Properties

14 The Lofts at Front Street Under Construction 258 6/1/2022 The Breeden Company

15 Rivers Edge at Berkley Proposed 280 TBD Sunsations Realty

16 225 West Olney Road Proposed 252 TBD Marathon Development Group

17 Bennett's Creek Quarter Proposed 292 TBD HHHunt

18 1500 Monticello Avenue Proposed 258 TBD Concord Eastridge

19 Legacy of Poquoson Proposed 200 TBD Big Woods Development Company

20 Columbus Village Proposed 230 TBD Armada Hoffler Properties

21 Residential Tower at Waterside Proposed 300 TBD The Cordish Companies

22 Hilton Commons & Huntington Pointe Proposed 2500 TBD McCale Development

23 CityView Two Proposed 250 TBD Ripley Heatwole Company

24 Mosaic Proposed 284 10/1/2022 Summit Pointe Realty

25 3800 Acqua at Bridgeport III Proposed 280 TBD Beco Asset Management

26 Greenwood Manor Proposed 280 TBD Herman & Kittle Properties

27 Riverside Proposed 236 TBD The Franklin Johnston Group

28 Atlantic Street & Waterside Drive Proposed 272 9/1/2022 Marathon Development Group

29 Atlantic Park Proposed 425 TBD Venture Realty Group

DEVELOPMENT PIPELINE

10 | Hampton Roads

EMPLOYMENT OVERVIEW

Hampton Roads, with a labor force of approximately 903,000, has a unique talent pipeline that is unlike many

others in the United States. Contributing factors are a well-educated and ample workforce that is consistently

enhanced by graduates from the region’s 12 universities and a large pool of military personnel exiting the

service and entering the private sector. In addition, the city of Norfolk was recently named the #5 city for net

millennial migration in the United States "(SmartAssets)". The area is currently home to over 155 international

businesses and serves as headquarters for multiple Fortune 500 companies. Businesses continue to be attracted

to Hampton Roads for a multitude of reasons including the low business cost, an accessible transportation

infrastructure, and a superior economic climate.

Huntington Ingalls Industries is America’s

largest military shipbuilding company and a

provider of professional services to partners

in government and industry

Ferguson, headquartered in Newport News,

Virginia, United States, is the largest U.S

distributor of plumbing supplies, PVF,

waterworks and fire and fabrication products.

TOP HAMPTON ROADS COMPANIES

TOP UNIVERSITIES

General Dynamicsis an American

aerospace and defense corporation. As of

2019, it was the fifth-largest defense

contractor in the United States, and the sixth

-largest in the world, by sales.

ADP, is an American provider of human

resources management software and ser-

vices. ADP pays more than 40 million work-

ers worldwide and serves more than

800,000 businesses from small business to

global enterprise in 140 countries.

Dollar Tree is a Fortune 500 company and

operates 15,115 stores throughout the 48

contiguous U.S. states and Canada.

entara Healthcare is a not-for-profit

healthcare organization serving Virginia and

northeastern North Carolina

Old Dominion University, is a public re-

search university in Norfolk, Virginia with an

enrollment of 24,176 students for the 2019

academic year.

Christopher Newport University, is a public

liberal arts university in Newport News, Vir-

ginia. CNU is the youngest comprehensive

university in the commonwealth of Virginia.

William & Mary University, is a public re-

search university in Williamsburg, Virgin-

ia, it is the second-oldest institution of high-

er education in the United States, after Har-

vard University.


JARED ALCORN | Senior Research Analyst T +1 804 401 4014 | C +1 540 553 2210 | [email protected]

Jared Alcorn joined CBRE in 2019, specializing in research operations for the

Central, Eastern, and Western Regions of Virginia. Jared currently directs

localized research for the Southern Virginia office in addition to developing

market intelligence, analytical reports, and quarterly market analysis. Jared

works in a cross-functional environment, collaborating closely with the

leadership team and other lines of business such as advisory and transaction

services, client services, and property management.

FOR A MARKET VALUATION OR MORE INFORMATION CONTACT:

PEYTON COX | Vice President, Multifamily T + 1 804 201 2005 | C +1 804 895 3402 | [email protected]

Peyton Cox joined CBRE in 2016, specializing in multifamily property sales in

Virginia and covers the Hampton Roads, Central and Western Regions of the

state. Peyton focuses on multifamily dispositions for institutional as well as private

capital clients. He also has considerable experience in the affordable housing

sector assisting owners with the disposition of LIHTC assets. In the last three

years, he has participated in more than $250 million of transactions with the

CBRE Multifamily Team.

CALVIN GRIFFITH | Vice President, Multifamily T + 1 804 401 4018 | C +1 703 881 6549 | [email protected]

Calvin Griffith joined CBRE in 2020, specializing in multifamily investment sales

throughout the state of Virginia. Calvin is currently a Vice President with the CBRE

Virginia Multifamily Team, and is focused on multifamily dispositions for

institutional, middle market, and private capital clients. He also has experience in

the affordable housing and manufactured housing sectors. Calvin has completed

transactions throughout Virginia, including the Richmond, Charlottesville,

Roanoke and Norfolk markets. Since 2016, Calvin has participated in over $800

million in transactions throughout Virginia.

$33.3B Multifamily Sales

In 2019

$30.4B Multifamily Financing

In 2019

$63.7B Capital Markets

Multifamily Activity in 2019

U.S. Apartment Broker Since 2001* Freddie Mac Loan Originator In 2019** Agency Originator in 2019***

*Source: Real Capital Analytics **Source: Freddie Mac ***Source: Freddie Mac & Fannie Mae

1 4 S T R A I G H T Y E A R S

12 | Hampton Roads

© 2020 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners.

CBRE 1802 Bayberry Court, Suite 201

Richmond, VA 23226 +1 804 4014000

www.cbre.us/richmond

For a market analysis on your property or more information contact:

CALVIN GRIFFITH Vice President CBRE Multifamily T +1 804 401 4018 M +1 703 881 6549 [email protected]

PEYTON COX Vice President CBRE Multifamily T +1 804 401 4017 M +1 804 895 3402 [email protected]

JARED ALCORN Senior Research Analyst Southern Virginia T +1 804 401 4014 M +1 540 553 2210 [email protected]

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