REVA FABER POINT, DST
1100 Boulders Parkway, Suite 605 Richmond, Virginia 23225
Investor Purchase: $20,000,000
Equity Raised: $8,230,000
- Debt Financing: $11,770,000
- Property Square Footage: $71,816
- Price PSF: $276.40
- Cap Rate: 6.76%
REVA Faber Pointe DST is expected to have a seven to ten year investment horizon. Its non-recourse mortgage loan matures in 2024 and offers real advantages with interest-only payments through August 2017 and an interest rate of 4.25%.
1100 Boulders Parkway, Suite 605 Richmond, Virginia
Completed in 2013, Faber Pointe is a 97% leased Class A office building and the newest property in the Executive Park at Faber Place. The building’s design includes effcient floor plates, well-appointed lobbies and common areas,
Property Description
Charleston’s vibrant economy, growing tech industry, educated labor force and increasing popularity are driving demand and contributing to the market’s success. Occupancy in the Charleston office market continued along its upward path through the second quarter of 2015, which ended with a vacancy rate of 9.8%. Charleston’s economic output growth over the last year ranks it among the top 20% of metro areas nationwide, with the biggest contributors to the increase being the manufacturing, information and finance sectors. From 2010 to 2014, Charleston’s economic output grew 6%.
The Charleston Office market is comprised of 12.2 million square feet, spread among the Central Business District (CBD) and six suburban markets.
Asking rental rates in Charleston, averaging $22.59 per square foot ($27.10/SF for Class A), are among the top rates in the Southeast, surpassing those of Atlanta, GA and Charlotte, NC
The Charleston, SC office market continues to improve with occupancy above 90% and asking rents strengthening significantly.
Charleston Economy and Accolades
Charleston’s economy is driven by the port, military, healthcare and medical technology, and tourism with a combined economic impact totaling over $15.4 billion annually. Education also plays a role in the economy with the College of Charleston, The Citadel and Medical University of South Carolina all calling Charleston home. The region’s economy has evolved from being military and government based to being well-diversified across many sectors. The emergence of companies focused on sophisticated manufacturing, biosciences and cutting-edge communications technology helps the region maintain a stable economy and protects against downturns across sectors. In 2009 Boeing selected Charleston as the site for a second assembly facility for the new 787 Dreamliner aircraft and, most recently, Volvo and Mercedes announced they will be opening new plants in Charleston. The presence of these major employers and Blackbaud, a provider of solutions to fundraisers and non-profits, demonstrate the strength of the local economy. Not to be forgotten is the Port of Charleston, one of the busiest container ports along the Southeast and Gulf coasts, which is a significant contributor to the stability of the economy.
Property Tenancy: 97% Leased
Faber Pointe is well leased with a strong anchor tenant, Molina Healthcare. Molina is a $4.19 billion market cap company that ranks 301 on the 2015 Fortune 500 list. Additional tenants cover a wide array of industries including education, employment staffing, engineering and construction.
Tenant Summary
- Molina Healthcare 40,909 square feet: A Fortune 500 company operating in multiple states with over 5 million customers, incorporating health plans, medical clinics and a health information management solution. no other organization of its kind does all three. Molina’s accounts for approximately 57% of the buildings rentable square feet and has a lease that matures September 2023.
- Webster University 12,520 square feet: Non-profit university that provides accredited undergraduate and graduate school education to approximately 20,000 students. Webster’s occupancy accounts for approximately 17% of the buildings rentable square footage and has a lease that matures November 2023.
- BRPH Companies 4,487 square feet: An architecture, Engineering and design firm that focuses on the manufacturing, Aerospace, commercial, education, entertainment and federal facilities fields. BRPH’s lease matures in May 2019.
- Shipco Transport 4,096 square feet: A division of Denmark based Scan-Group. The company is one of the world’s leading neutral non-vessel operating common carriers. Shipco’s lease maturity is in July 2020.
ABOUT REVA Faber Pointe DST
1100 Boulders Parkway, Suite 605
Richmond, Virginia 23225
Tell: 866-842-7545 | Fax: 866-842-7591
Email: steve@revacompanies.com