Multifamily Market Report | 1
Transcript of 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
Multifamily Market Report | 3
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
Multifamily Market Report | 5
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
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
Price/Unit $ 102,734
Owner/Buyer Seminole Trail Properties
Seller Runnymede Corp
Date May 7
KINGSTOWNE I & II
Units 384
Sale Price $ 39,000,000
Price/Unit $ 101,563
Owner/Buyer Kingstown Milrose LLC
Seller BAF Associates Inc
Date Jan 16
NEWPORT TOWERS
Units 135
Sale Price $ 9,300,000
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
Price/Unit $ 107,482
Owner/Buyer SREIT
Seller Lakeside Cap Advisors
Date Feb 13
BRITTANY PLACE APARTMENTS
Units 148
Sale Price $ 16,950,000
Price/Unit $ 114,527
Owner/Buyer Levco Realty Group
Seller Affordable Housing Corporation
Date Jun 11
THE VILLAGES AT CITY CENTER
Units 116
Sale Price $ 11,600,000
Price/Unit $ 100,000
Owner/Buyer Levco Realty Group
Seller BAF Associates Inc
Date Jan 14
PELHAM PLACE
Units 74
Sale Price $ 6,040,000
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
Price/Unit $ 102,679
Owner/Buyer Wesleyan Apartment Associates
Seller Affordable Housing Corporation
Date Mar 13
COTTAGE TRLS AT CULPEPPER LNDNG
Units 183
Sale Price $ 23,905,561
Price/Unit $ 130,631
Owner/Buyer Steadfast Apartment REIT
Seller Steadfast Apt REIT III
Date Mar 6
INDIGO 19
Units 196
Sale Price $ 41,500,000
Price/Unit $ 211,735
Owner/Buyer Hamilton Zanze & Co
Seller Harmony Investments
Date Jan 14
MARINA POINT
Units 104
Sale Price $ 9,250,000
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
Price/Unit $ 117,187
Owner/Buyer Regency at Longhill Apartments LLC
Seller Philip Richardson Co Inc
Date Feb 28
WOODLANDS AT OYSTER POINT
Units 152
Sale Price $ 9,260,000
Price/Unit $ 60,921
Owner/Buyer AOZPCREI Woodlands LLC
Seller United Prop Assocs
Date Jan 29
Multifamily Market Report | 9
# 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.
Multifamily Market Report | 11
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
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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]