ONE SOUTH COMMERCIAL

PETERSBURG MULTIFAMILY PORTFOLIO[1]

FOR SALE | 56-UNIT TOWNHOME APT COMMUNITY

BRADFORD MANOR APARTMENTS2013 Fairfield Ave, Richmond VA 23223

PID: E0001078003, E0001078003B High Quality Workforce Housing56 Units (2bed/1bath)2 Miles from Downtown RichmondI-64 AccessTrack Record of 100% Occupancy

R-53MULTIFAMILY

ZONING

56 2BED/1BATH

UNITS

1.99 ACPARCEL AREA

775+/- SFEACH UNIT

56PARKING SPACES

BRADFORD MANOR APARTMENTS

TABLE OF CONTENTS*

Communication:One South Commercial is the exclusive representative of Seller in its disposition of Bradford Manor Apartments. All communications regarding the property should be directed to the One South Commercial listing team.

Property Tours:Prospective purchasers should contact the listing team regarding property tours. Please provide at least 72 hours advance notice when requesting a tour date out of consideration for current residents.

Offers:Offers should be submitted via email to the listing team in the form of a non-binding letter of intent and should include: 1) Purchase Price; 2) Earnest Money Deposit; 3) Due Diligence and Closing Periods.

Disclaimer:This offering memorandum is intended as a reference for prospective purchasers in the evaluation of the property and its suitability for investment. Neither One South Commercial nor Seller make any representations or warranties with respect to the accuracy or completeness of the materials contained in the offering memorandum. Prospective purchasers should evaluate the property independently and rely solely on such independent evaluation in determining whether to purchase the property. The offering memorandum, pricing, and terms therein are subject to change or withdrawal at the discretion of Seller and One South Commercial, as Seller’s exclusive representative.

3 Executive Summary

4 Property Photos

7 Sale Comparables & Map

8 Rental Comparables

9 Rental Comparables Map

10 Richmond Metro Area Summary

12 Richmond Economic Development

13 Richmond Major Employers

14 Demographics

15 Multifamily Market Analysis

16 Area Map

17 One South Commercial Team

BRADFORD MANOR APARTMENTS[3]

EXECUTIVE SUMMARY

One South Commercial is pleased to present for sale Bradford Manor Apartments, comprised of 56 townhome-style units located in thriving Richmond, VA. The 2-bedroom, one-bathroom units are each approximately 775 square feet, have central heating and air and replacement windows, and are metered individually for gas and electricity. The parking lots and grounds are well maintained and there is on-site laundry for residents’ convenience. With rents well below market comparables, it is no surprise that the apartments have a track record of 100% occupancy. The property offers easy access to major interstates and downtown.

PHYSICAL SUMMARY

The buildings are constructed over slab on grade with wood framing and brick veneer. Portions of the second levels have vinyl siding. Eleven of 22 roofs have been replaced with dimensional asphalt shingles and the remaining roofs have three tab asphalt shingles that are in good condition. The parking lot was recently sealed and restriped and includes 56 parking spaces, which is in addition to ample on-street parking.

56 Townhome Units with Track Record of 100% Occupancy

VIRTUAL TOUR

https://my.matterport.com/show/?m=GaLxno2sdNE

BRADFORD MANOR APARTMENTS[4]

FAIRFIELD AVE

BRADFORD MANOR APARTMENTS[5]

VIRTUAL TOUR

https://my.matterport.com/show/?m=GaLxno2sdNE

BRADFORD MANOR APARTMENTS[6]

BRADFORD MANOR APARTMENTS[7]

SALE COMPARABLES & MAP

BRADFORD MANOR

KINGSWOOD COVE

COLORADO MANOR1701 Colorado AveRichmond, VA 23220Units: 76Sold March 2020$4,560,000 ($60,000/unit)

LAKEVIEW MANOR2001 Lakeview AveRichmond, VA 23220Units: 23Sold March 2020$1,380,000 ($60,000/unit)

KINGSWOOD COVE6426 Elkhardt RdRichmond, VA 23225Units: 60Sold Feb 2020$3,500,000 ($58,333/unit)

PARK AT FOREST HILL3900 Forest Hill AveRichmond, VA 23225Units: 80Sold November 2018$5,127,922 ($64,099/unit)

WESTOVER HILLS606 Westover Hills BlvdRichmond, VA 23225Units: 38Sold July 2019$2,470,000 ($65,000/unit)

WESTOVER HILLS

COLORADO MANORLAKEVIEW MANOR

PARK AT FOREST HILL

RICHMOND

BRADFORD MANOR APARTMENTS[8]

RENTAL COMPARABLES

BEDROOMS UNITS AVG SF RENT/UNIT RENT/SF

2 89 1,148 $750 $0.65

Total 89 1,148 $750 $0.65

TOWNSEND SQUARE TOWNHOMES

2153 Cool Lane, Richmond, VA 23223

89 Units | Constructed in 1968

BEDROOMS UNITS AVG SF RENT/UNIT RENT/SF

1 3 710 $762 $1.07

2 186 830 $848 $1.02

3 3 910 $1,002 $1.10

Total 192 829 $849 $1.02

MALLARD GREENS

2852 Fairfield Ave, Richmond, VA 23223

192 Units | Constructed in 1965

BEDROOMS UNITS AVG SF RENT/UNIT RENT/SF

1 40 598 $699 $1.17

2 124 760 $815 $1.07

3 47 929 $948 $1.02

4 7 1,176 $1,035 $0.88

Total 218 780 $829 $1.06

JEFFERSON TOWNHOMES

1951 Venable St, Richmond, VA 23223

218 Units | Constructed in 1968

BEDROOMS UNITS AVG SF RENT/UNIT RENT/SF

1 - - $819 -

2 198 781 $876 $1.12

3 121 958 $1,003 $1.05

Total 319 848 $924 $1.09

VILLAS OF OAKWOOD

3508 E Richmond Rd, Richmond, VA 23223

319 Units | Constructed in 1965

BRADFORD MANOR APARTMENTS[9]

BRADFORD MANOR

JEFFERSON TOWNHOMES

UNION HILL

RENTAL COMPARABLES MAP

NINE MILE ROAD

MALLARD GREENS

TOWNSEND SQUARE

VILLAS OF OAKWOODCHURCH HILL

FAIRFIELD

MOSBY ST

E BROAD ST

FAIRFIELD AVE

E LEIGH ST FAIRMOUNT

NORTH CHURCH HILL

BRADFORD MANOR APARTMENTS[10]

RICHMOND METRO AREA

Richmond is one of the oldest and most historic cities in the United States. As the site of numerous seminal events in the nation’s history, Richmond has been a center for politics, trade, and commerce for over three centuries. Today, the metro area is home to more than 1.3 million residents and headquarters to ten Fortune 1000 companies including Altria Group, Carmax, Performance Food Group, and Dominion Energy.

In addition to its role as a business hub, Richmond serves a critical role as the center of health care, research, and education in the Mid-Atlantic region. Four universities are located within the metro area including Virginia Commonwealth University -- the largest university in Virginia -- and the VCU Health System both located in Downtown.

Richmond is comprised of neighborhoods that are both unique and significant. The Fan District is the largest intact residential neighborhood featuring Victorian architecture in the United States. Church Hill overlooks the James River where similarities to the London suburb gave Richmond its name,. The neighborhood is also home to St. John’s Church where Patrick Henry gave the speech that changed the course of the country.

Naturally, visitors come to Richmond for its history, but they also flock to the area for many other attractions. The Virginia Museum of Fine Arts, Capitol Square, the City’s famous restaurants and breweries, and a host of other attractions draw over 7 million people to the region annually. Maymont Park and the natural areas of the James River also offer delights specifically for nature lovers. More and more people are becoming aware of all that the Richmond Metro Area has to offer. Unsurprisingly, the New York Times lists Richmond as one of “52 Places to Go in 2020”.

The New York Times lists Richmond as one of “52 Places to Go in 2020” in the world

The James River and Downtown Fan District

Kehinde Wiley’s “Rumors of War” Statue

PROPERTY VALUE

BRADFORD MANOR APARTMENTS[11]

RICHMOND MSA

MEDIAN PROPERTY VALUE

$246,100POPULATION

1.31MMEDIAN HOUSEHOLD INCOME

$67,703NUMBER OF EMPLOYEES

696,500MEDIAN AGE

38.8MED HH INCOME GROWTH (1 YR)

0.10%

MEDIAN HH INCOME

$42,3562017 VALUE

2.84%1 YEAR GROWTH

PROPERTY VALUE

$209,2002017 MEDIAN

$199,3002016 MEDIAN

BRADFORD MANOR APARTMENTS[12]

RICHMOND METRO AREA ECONOMIC DEVELOPMENT

Throughout its long history, Richmond has been a center for economic development with wide ranging impacts for the region and beyond. Its economy is based on a business-friendly setting and infrastructure that make the area attractive to both large and small businesses and organizations.

KEY INDUSTRIES

Seven Fortune 500 companies call Metro Richmond home including the Altria Group, Carmax, Owens and Minor, and Genworth Financial. These and other companies represent diverse industries including creative, high-tech, health care, traditional manufacturing, and financial services.

Adweek’s “Agency of the Year”, the Martin Agency, is located in Richmond along with many other leading design, architecture, and creative companies. In addition, VCU is one of the top creative and design universities in the country.

VCU Health Systems is the leading healthcare provider and research centers in the region. However, they are not alone in representing this sector. HCA Healthcare and Bon Secours Health Systems also have a major presences in the area. In addition, the VA Bio+Tech Park is home to over 70 companies on the cutting edge of this critical field.

To complement these high tech companies, traditional manufacturing, and financial services are also well-represented in Metro Richmond. WestRock, NewMarket, Universal Corporation, and others produce chemicals, plastics, packaging, and tobacco products that are globally exported. And in a role it has played for centuries, Richmond is the hub for financial services. Today, the Fifth District Federal Reserve Bank, BB&T, SunTrust, Wells Fargo, and numerous other financial service firms are located in the central business district.

EMPLOYMENT

Due to the strong local economy, Richmond is enjoying steady growth in employment opportunities. In December 2019, Metro Richmond’s employment increased 2% over the year to 696,500. This increase is significantly higher than the national growth of 1.4% over the same period. The increase in job growth in Metro Richmond represents almost 10 consecutive years of gains in the area. Education and health services had the largest employment gain from December 2018 to December 2019, adding 5,400 jobs. The recent advance represents a 5.4-percent rate of job growth over the year in the local area, double the nationwide advance of 2.7 percent for this industry.

Similarly the unemployment rate in Metro Richmond stands at 2.9% and much lower than the already historically low national rate of 3.8%

FORTUNE 500 COMPANIESHEADQUARTERS INRICHMOND

7

YEARSCONSECUTIVE JOBGROWTH10

UNEMPLOYMENTDEC 20192.9%

BRADFORD MANOR APARTMENTS[13]

EMPLOYER MILES TIME

1. Capital One 24.5 30 Min

2. VCU Health 4.6 13 Min

3. HCA Health System 14.5 20 Min

4. Bon Secours 3.8 9 Min

5. Dominion VA Power 4.1 10 Min

6. SunTrust Banks Inc. 13.1 19 Min

7. Altria Group 4.0 10 Min

8. Amazon.com 11.8 18 Min

9. Wells Fargo 3.5 9 Min

10. Anthem 4.0 10 Min

11. UPS 20.4 25 Min

12. DuPont 4.0 10 Min

13. Bank of America 11.1 20 Min

14. Markel Corp 3.7 10 Min

15. Federal Reserve Richmond 15.0 20 Min

DRIVE TIME TO MAJOR AREA EMPLOYERS LARGEST RICHMOND EMPLOYERS

PETERSBURG DEMOGRAPHICS*RICHMOND METRO MAJOR EMPLOYERS

BRADFORD MANOR APTS

1

2

4

56

7

8

9

10

11

12

13

14

1520 MIN DRIVE

30 MIN DRIVE

RICHMOND

EMPLOYER EMPLOYESS

1. Capital One 13,000

2. VCU Health 9,313

3. HCA Health System 7,628

4. Bon Secours 7,136

5. Dominion VA Power 5,433

6. SunTrust Banks Inc. 3,810

7. Altria Group 3,800

8. Amazon.com 3,800

9. Wells Fargo 2,902

10. Anthem 2,655

11. UPS 2,490

12. DuPont 2,376

13. Bank of America 1,921

14. Markel Corp 1,886

15. Federal Reserve Richmond 1,882

3

BRADFORD MANOR APARTMENTS[14]

PETERSBURG DEMOGRAPHICS*DEMOGRAPHICS

239,274POPULATION

$67,322AVG HOUSEHOLD

INCOME

13.0%POPULATION GROWTH

PAST 10 YEARS

DEMOGRAPHICS (WITHIN 5 MILES) DISTANCE FROM PROPERTY 1 MILE 3 MILE 5 MILE

Population:

2025 Projection 20,432 135,935 250,426

2020 Estimate 19,378 128,911 239,274

2010 Census 16,789 108,347 211,777

Growth 2020-2025 5.44% 5.45% 4.66%

Growth 2010-2020 15.42% 18.98% 12.98%

Households:

2025 Projection 7,303 56,026 106,676

2020 Estimate 6,925 52,990 101,917

2010 Census 5,947 43,530 89,997

Growth 2020 - 2025 5.46% 5.73% 4.67%

Growth 2010 - 2020 16.45% 21.73% 13.24%

Owner Occupied 2,206 20,421 43,815

Renter Occupied 4,719 32,570 58,103

2020 Avg Household Income $37,749 $60,170 $67,332

2020 Med Household Income $23,650 $42,336 $46,505

2020 Households by Inc:

<$25,000 3,589 16,686 27,804

$25,000 - $50,000 1,640 13,586 26,619

$50,000 - $75,000 797 8,526 16,475

$75,000 - $100,000 357 5,444 11,255

$100,000 - $125,000 365 3,752 7,252

$125,000 - $150,000 79 1,616 3,866

$150,000 - $200,000 22 1,556 3,792

$200,000+ 77 1,823 4,855

RADIUS 1 MILE 3 MILE 5 MILE

Total 3,538 150,603 208,012

Retail 295 4,102 11,290

Wholesale 175 2,394 5,280

Hospitality 162 7,300 13,203

Real Estate 70 1,545 3,104

Finance 39 5,641 7,584

Information 93 2,628 3,410

Scientific & Tech 188 16,882 20,518

Management 0 142 176

Health Care 714 19,793 30,131

Education Services 607 59,171 62,027

Public Admin 330 11,813 13,831

Arts, Entertainment 12 1,480 3,700

EMPLOYEES

BRADFORD MANOR APARTMENTS[15]

PETERSBURG DEMOGRAPHICS*RICHMOND MULTIFAMILY MARKET ANALYSIS

Richmond’s apartment market continues to grow and is doing so rapidly. The metro is in the midst of peak development levels, which will ultimately bring thousands of high-quality units to the market over the course of the next two years. Nonetheless, about 90% of this cycle’s net demand has been within the 4 & 5 Star cohort, which accounts for a significant portion of the ongoing wave of development.

While construction is still very much focused in and around Downtown Richmond, development has started to sprout in the metro’s outlying submarkets. This path of development has followed a demographic trend as well, where the latter half of the millennial cohort has begun their exploration into suburban living.

Consistently healthy fundamentals have brought about new levels of investment in Richmond. After setting records for volume in each of the prior two years, a new record was once again set in 2019 as investors chased higher yields in secondary markets. As a result, transactional pricing rose and cap rates tightened.

Multifamily development has risen to new heights in Richmond. However, so too has demand, as four-quarter-trailing net absorption figures have outpaced the metro’s historical average in every quarter since mid-2013. These above-average outputs have benefitted landlords, particularly as options for renters have grown by the quarter. In turn, vacancies have consistently remained between 6% and 8% for the entirety of this cycle.

This strong demand has been supported by a growing population base, as well as an expanding local economy. With an employment base that includes back- and middle-office operations, research organizations, and the local and state government, the presence of well-paying entry-level jobs has attracted residents to the metro in recent years. In addition, Richmond also holds appeal in terms of cost of living, which is roughly 35% lower than the rate in nearby Washington D.C.

The combination of location and an evolving demographic picture have driven multifamily leasing in Richmond as of late. Millennials are still renting in droves, but as that cohort has continued to age, tastes have been shifting. Over the past few years, suburban assets have seen an uptick in demand as compared to urban assets.

Spurred by continually impressive demand, rent growth rose to new heights in 2017 and 2018. After six consecutive years in which year-end gains bested the metro’s historical average, rent growth in 2019 fell short of that mark, but only slightly. Either way, cumulative gains in Richmond have amounted to more than 20% since the beginning of 2010.

Not all gains have been equally spread, though. In fact, when trifurcating growth rates by star ratings, cumulative gains have been most pronounced within the 3 Star cohort. This rating largely aligns with what could be deemed as workforce housing, and with little new construction to affect fundamentals, landlords have been able to push rents most significantly within that cohort.

6CONSECUTIVE YEARS

RENT GROWTH

BRADFORD MANOR APARTMENTS[16]

BRADFORD MANOR

RICHMOND AREA MAP

DOWNTOWN RICHMOND

E BROAD ST

MANCHESTER

CHURCH HILLJAMES RIVER

FAN DISTRICT

MUSEUM DISTRICT

NORTHSIDE

SOUTH RICHMOND

FAIRMOUNT

HULL ST

MIDLOTHIAN TPK

MEC

HANI

CSVI

LLE

TPK

AZALEA PLACE APARTMENTS[17][17]PETERSBURG MULTIFAMILY PORTFOLIO[17]

One South Commercial is a CoStar PowerBroker in the Richmond, VA investment sales market with more than $200M in sales in 2018-19. Our reputation among those with local knowledge as the premier investment sales shop in the City of Richmond is built on a wide network of relationships with principals all over the world who trust us and our ability to effectively analyze the economics of any deal and represent them honestly.

ONE SOUTH COMMERCIAL2314 West Main Street | Richmond VA 23220 | onesouthcommercial.com | 804.353.0009

ONE SOUTH COMMERCIAL TEAM

TOM ROSMAN | 804.539.3017 | tom.rosman@onesouthcommercial.com

Tom Rosman has been brokering investment real estate since the early 1990’s in the Richmond, VA, metro area. He has brought hundreds of transactions to a successful conclusion, including large apartment complexes, apartment buildings in historic neighborhoods, office buildings, retail properties, mixed use buildings, and numerous historic adaptive reuse properties.

Tom was one of the first brokers to recognize the transformative changes occurring in many of Richmond’s most architecturally significant but ignored neighborhoods. As one of the Founding Partners at One South, Tom heads up the commercial and investment sales for One South Commercial.

JUSTIN SLEDD | 804.307.4060 | justin.sledd@onesouthcommercial.com

Justin is a seasoned commercial real estate expert with over a decade worth of experience. Having a widespread knowledge of the Richmond real estate market, Justin is comfortable handling many types of transactions, but his primary practice areas are multifamily and investment sales.

Justin possesses a commanding knowledge of Richmond’s rental market, providing his clients with in-depth analysis of the competitive landscape and value add solutions. Justin is a Richmond native and graduate of Virginia Commonwealth University.