CSRA PERRY PLACE, DST
Location: 815 Perry Street, Richmond, Virginia 23224
INVESTMENT COST: $9,350,000
EQUITY RAISE: $3,600,000
- CASH-ON-CASH RETURN: 5.60% Starting
- OFFERING LOAN-TO-VALUE: 61.50%
- FIXED INTEREST RATE: 5.07%
- LOAN: 10-Year Term
Perry Place is a 70-unit, loft-style apartment community located
in Richmond, Virginia’s rapidly expanding Manchester Arts District.
The historic building was constructed in 1912 for the Acme Paper
& Supply Company, and was recently renovated in 2010.
Perry Street, Richmond, Virginia
Stainless steel appliance package, including an electric range/oven, vent-hood, frost-free refrigerator with icemaker, dishwasher and built-in
microwave
INVESTMENT HIGHLIGHTS
- 100% occupied (as of December 7, 2015), with the opportunity to raise rents in the future
- Being purchased at a favorable 6.23% cap rate, based on Investment Cost
- Recently renovated, in good condition, and has very unique and architecturally appealing units
- Located in the rapidly expanding Manchester area in close proximity to Richmond’s Central Business District
- Benefits from common amenities that are superior to most historic loft properties in the neighborhood
- Dramatic views of the James River and the downtown skyline
- Richmond is the capital of the Commonwealth of Virginia and benefits from a well-diversified economy, numerous colleges and universities (for example, Virginia Commonwealth University and the University of Richmond), a low unemployment rate, and numerous large and public companies providing stable employment
PROPERTY DETAILS
- UNITS: 70
- PERCENTAGE LEASED: 100%*
- BUILDING: Single, two-story building
- CONSTRUCTED: Historic building constructed in 1912
- RENOVATION: Completed in 2010
- LOT SIZE: 1.24 acres of land
- PARKING: 70 parking spaces
MARKET OVERVIEW
LOCATION
Located in the center of Virginia and situated along the James River, the Richmond Metropolitan Statistical Area is home to more than 1.25 million residents, making it the 44th largest MSA in the United States, by population, in 2013. Propelling its population growth, both small businesses and Fortune giants have selected Richmond as their host and home. As proof of the dynamism, the Richmond economy created 1,670 new startup firms in 2013 and an additional 1,072 in the first half of 2014. Additionally, the MSA is home to ten Fortune 1000 company headquarters, six of which rank in the top 500, including: Altria Group, Inc., Dominion Resources, Inc., CarMax, Inc., Genworth Financial, Inc., Owens & Minor, Inc., and MeadWestvaco, Inc. Richmond also houses some of Virginia’s most renowned institutions of higher education and extensive state and local government centers. Richmond is home to five four-year colleges and universities as well as numerous vocational and professional programs.
GROWTH PATTERNS
Richmond’s Manchester Arts District is in a stage of redevelopment, including the conversion of older buildings and the development of new facilities. A significant number of renovation projects and new construction projects have occurred in recent years, and more new developments are planned or proposed.
Richmond has seen consistent population growth over the last 20 years, growing from the 49th to the 44th largest MSA nationally in less than a decade. The area’s population grew 14.7 percent from 2000 to 2010, and forecasts anticipate an additional 13.1 percent growth between 2010 and 2020. Richmond’s workforce is highly educated, with 31 percent of the population attaining a bachelor’s degree or higher. With a highly educated, diverse workforce, and positive market fundamentals, the Richmond area can rely on continued growth for the foreseeable future.
ABOUT CAPITAL SQUARE
Capital Square 1031, LLC specializes in the creation and management of real estate investment programs for Section 1031 exchange investors and other investors using the Delaware Statutory Trust structure. Louis J. Rogers, founder and chief executive offi cer of Capital Square, has been involved in the creation and management of more than 100 investment offerings totaling over $3 billion, including DSTs, tenant-in-common offerings, numerous real estate funds, and multiple publicly registered non-traded real estate investment trusts.