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BROOK ROAD APARTMENTS
PREMIER JOINT VENTURE DEVELOPMENT OPPORTUNITY IN RICHMOND, VA
OFFERING MEMORANDUM
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This Offering Memorandum has been prepared by Jones Lang LaSalle Americas, Inc. or its state-licensed affiliate (“JLL”) for use by a limited number
of recipients. All information contained herein has been obtained from sources other than JLL, and neither Owner nor JLL, nor their respective equity
holders, officers, directors, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of
the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the
property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained
in the Offering Memorandum is solely the responsibility of the recipient. JLL and Owner and their respective officers, directors, employees, equity holders
and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.
Additional information and an opportunity to inspect the property may be made available, in Owner’s or JLL’s sole discretion, upon written request by
interested and qualified prospective investors.
Owner and JLL each expressly reserves the right, in its sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate
discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering
Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property
has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.
The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained
in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s
employees, agents and consultants who have a valid need to know business reason to know such information (collectively, the “need to know parties”)
will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone
else to disclose its contents to any other person, firm, or entity without the prior written authorization of JLL and the Owner, (c) the Recipient and the need
to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the
Owner or JLL or for any purpose other than use in considering whether to purchase the property, and (d) recipient will notify each of the need to know
parties of the terms of this agreement and will be responsible for breach of same by any of the need to know parties. The Recipient and the need to know
parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this
Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue
such negotiations, the Recipient will return this Offering Memorandum to JLL. ©2019. Jones Lang LaSalle IP, Inc. All rights reserved.
CONFIDENTIALITY AGREEMENT
TABLE OF CONTENTS
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EXECUTIVE SUMMARY
LOCATION & MARKET OVERVIEW
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EXECUTIVE SUMMARY
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JLL is pleased to present for development The Brook Road Apartments, a fully entitled 224-market rate unit rental project located at 2009 Brook Road in
Richmond, VA. The 4.5-acre site will capitalize on the positive rental momentum taking place throughout the Virginia Union and Chamberlayne submarkets.
The project consists of two four-story garden-style apartment buildings located along Brook Road and Roberts Street.
Adjacent to I-64 and I-95 and 5 minutes from Downtown Richmond, the Property benefits from unparalleled connectivity throughout the metro area. The
Property is also within a five-minute drive to Virginia Union University, Virginia Commonwealth University, and over 1.8MM SF of retail space. A tri-fecta
of growth factors including universities, government, and a business-friendly environment have created dramatic population growth since 2000 (34%) and
sustained apartment rent growth.
Brook Road Apartments are poised to benefit from the positive rental and economic tailwinds throughout the Richmond market. Richmond added more jobs
in 2018 than in 2017 and 2016 combined and continues to grow dramatically due to the influx of millennial renters and positive corporate and employment
trends. Despite the fact the Richmond market has recently experienced record levels of deliveries, the submarket has continued to see rent growth of over 3%
over the last two years and is on pace to do so again in 2019.
INVESTMENT HIGHLIGHTS
3%+ RENT GROWTH EACH OF LAST THREE YEARS
3.0% UNEMPLOYMENT RATE
DIRECT ACCESS TO DOWNTOWN RICHMOND
7 FORTUNE-500 COMPANIES HEADQUARTED IN RICHMOND
#2 CITY MILLENNIALS ARE MOVING TO – TIME
MAGAZINE
BROOK ROAD APARTMENTS
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CENTRAL LOCATION IN RICHMOND’S RAPIDLY DEVELOPING MSA
Capital of the Commonwealth of Virginia with a population of more than 1.3MM people
Unemployment rate of 3.0%, 60 basis points lower than US average
Adjacent to Virginia Union University and Virginia Commonwealth University Nearly 2MM SF of retail space within walking distance of the property
The region produces more than 9,500 bachelor and graduate degrees annually, continuously fueling the labor supply.
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224 4.5 2682UNITS 4-STORY BUILDINGS
(118 & 106 UNITS) ACRE SITE PARKING SPACES
AMENITIES
2-STORY CLUB HOUSE
POCKET PARK ON PROPERTY
POOLFITNESS CENTER
DOG PARKON-SITE STORAGE
UNITSBIKE MAINTENANCE
FACILITY
SITE PLAN
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95
64
195
VIRGINIA UNION UNIVERSITY
RICHMOND CONVENTION CENTER
RICHMOND COLISEUM
VIRGINIA STATE CAPITOL
BROOK ROAD APARTMENTS
The Dairy Bar
MCLEANS SUPPER
SCOTTS ADDITION
BROAD STREET
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95
64
195
VIRGINIA UNION UNIVERSITY
RICHMOND CONVENTION CENTER
RICHMOND COLISEUM
VIRGINIA STATE CAPITOL
BROOK ROAD APARTMENTS
The Dairy Bar
MCLEANS SUPPER
SCOTTS ADDITION
BROAD STREET
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LOCATION & MARKETOVERVIEW
EXTERIOR FLOOR PLAN
PARKING POOL
EXTERIOR
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HIGHLY CONNECTED, IRREPLACEABLE LOCATION
RichmondInternational
Airport
RICHMOND
SHORT PUMP
MIDLOTHIAN
MECHANICSVILLE
GLENALLEN
CHESTER
295
64
64
64
64
64
95
95
95
95
295
295
295
295
1
601
1
60 60
60
360
360
360
360
360
360
250
33
250
288
76
288
288
150
76
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BROOK ROAD APARTMENTS
With a Metropolitan Statistical Area population of over 1.26 million people, Richmond is the capital of the Commonwealth of Virginia as well as its fourth
largest city. The city is located at the intersections I-95, I-64 and the Downtown Richmond Expressway (I-195), while surrounded by I-295 and VA Route
288. It is approximately 100 miles south of Washington, DC and is the southernmost city on the traditional I-95 business corridor which includes Richmond,
Baltimore, Washington, DC, Philadelphia, New York City and Boston.
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RICHMOND OVERVIEW
Richmond, Virginia is the capital of the Commonwealth of Virginia, and its fourth largest
city. It is one of the top 50 largest metropolitan areas in the country and regularly
ranked as one of the best cities to live and relocate a business.
Nestled in the heart of Virginia, Richmond benefits from the Commonwealth’s
pro-business disposition. Perennially ranked in the top seven states for
business, according to Forbes, the State of Virginia was ranked in the top five
from 2016 to 2018. This environment contributes to Richmond’s robust and
diverse local economy which, in turn, drives a strong demand for real estate.
BEST PLACE TO LIVE IN AMERICA- Business Insider
#5 BEST STATE FOR BUSINESS - Forbes Magazine
TOP 15 U.S. CITY WORTH MOVING TO - USA Today
#2 CITY MILLENNIALS ARE MOVING TO- Times
TOP 30 MOST FUN CITIES IN AMERICA- Business Insider
TOP 30 MOST EXCITING FOOD CITIES IN AMERICA
- Zagat
FORTUNE 1000 COMPANIES HEADQUARTERED IN RICHMONDCompany Industry Revenue (Billions) Fortune Rank Altria Group Tobacco & Wine Products $19.62 162CarMax Automotive Retailer $17.97 174Performance Food Group Food Wholesaler $17.62 176Dominion Energy Electric & Gas Utility $13.36 238Owens & Minor Health Care Wholesaler $9.83 317Genworth Financial Insurance $8.43 360Markel Corporation Insurance $6.84 441Brink’s Security Services $3.49 687NewMarket Chemicals $2.29 905Universal Tobacco Wholesaler $2.03 976
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ECONOMIC OVERVIEW
Richmond benefits from having a diverse economic base that includes a substantial government presence, as well as manufacturing, financial services, retail
and distribution services. Corporations are attracted to the area for its highly educated workforce, low cost of doing business and strategic location at the
mid-point of the East Coast.
Richmond is home to 10 Fortune 1000 Companies, including 7 Fortune 500 Companies across various industries such as insurance, retail, agriculture,
manufacturing and finance. The healthy Richmond economy is further evidenced by the list of top employers in 2019. Combined, these companies posted
Sales Revenue upward of $500 billion in 2019.
TOP 10 EMPLOYERS IN RICHMONDCompany Industry EmployeesCapital One Financial Corp. Financial Services 11,400Virginia Commonwealth Universal University Health System Health care 9,373HCA Virginia Health System Health care 7,628Bon Secours Richmond Health care 7,136Dominion Virginia Power Energy 5,433SunTrust Banks, Inc. Banking 3,810Altria Group, Inc. Cigarettes and wine 3,800Amazon Online retail 3,800Wells FargoNewMarket Banking 2,902Anthem Blue Cross and Blue Shield Health Insurance 2,655
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MAJOR INDUSTRIES
Capitol City with Large Government Presence
Richmond is not only home to the capitol of the Commonwealth of Virginia, but also
the United States Court of Appeals for the Fourth Circuit and the Federal Reserve
Bank of Richmond. Together, these entities create a stable base of high-paying
government jobs while attracting financial institutions, law firms and lobbying firms to
the area. Some of the nation’s largest law firms have their headquarters in Richmond,
including McGuireWoods, Hunton & Williams, Williams Mullen and LeClairRyan.
Finance and Insurance
Richmond is a proven hub for firms in the finance and insurance industries and home
to the Fifth District Federal Reserve. The municipality hosts a large presence from
industry leaders such as Capital One (11,400 employees), SunTrust Bank (3,810
employees), Wells Fargo (2,902 employees), Markel (1,900 employees) and
Genworth Financial (1,100 employees), who benefit from their proximity to each
other and the draw that the city has on the business community at large.
Logistics Hub
From its inception, Richmond has been a multi-modal transportation hub with excellent
regional accessibility. With over 55% of the nation’s consumers located within 750
miles, Richmond provides convenient access via four major interstate highways,
four airports, three train terminals and one shipping port. The Port of Virginia is the
6th largest container port in the nation, moving more than 2.6 million TEUs of cargo
through its terminals last year. The Richmond Marine Terminal is the westernmost port
in the Mid-Atlantic and Northeast and has the closest access to I-95 of any port on the
East Coast.
Agriculture
The agricultural industry, one of Virginia’s largest industries, has an economic impact
of $52 billion annually and provides approximately 500,000 jobs statewide.
Virginia has a diverse landscape and climate, which enables those domiciled in the
state of Virginia to produce diverse commodities including cattle, milk, tobacco, and
corn. Consequently, the agriculture and forestry industry have a profound impact
on the Richmond economy – estimated at $37 billion and account nearly 10% of
Virginia’s overall Gross Domestic Product. Further, every agricultural job in Richmond
supports 1.5 jobs elsewhere in Virginia’s overall economy.
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Virginia Commonwealth University Medical Center (14 minutes from the Property)
• 865 Beds • Ranked Nationally in three Adult Specialties • #1 Hospital in Richmond Metro • #1 Hospital in Virginia
Bon Secours St. Mary’s Hospital (8 minutes from the Property)
• 391 Beds • #2 Hospital in Richmond Metro • #6 Hospital in Virginia
Bon Secours Regional Medical Center (20 minutes from the Property)
• 225 Beds • #3 Hospital in Richmond Metro
• #9 Hospital in Virginia
Advanced Manufacturing
Richmond’s Advanced Manufacturing presence includes 450 companies concentrated
into two major sectors:
• Machinery Manufacturing – Firms in this sector produce advanced equipment that
enables other local industries to generate their respective products; for example,
manufacturing machines that automate food packaging, or roll cigarettes.
Noteworthy Machine Manufacturing companies in the Richmond area include
Flexicel, AMF Bakery Systems, and Virginia Crane.
• Advanced Materials – Firms in this sector concentrate on producing high-tech
polymers, fibers and materials. Industry Giants like DuPont and Honeywell have a
presence in Richmond; these groups lead the way in production of materials such
as Kevlar, Teflon, and M5 high-strength synthetic fiber. In 2018, Temperpack, a
manufacturer of sustainable thermal insulation for the packaging of perishable
goods, expanded its operation into Henrico County creating over 140 jobs in the
region.
Healthcare With more than 4,100 physicians and 19 acute care and specialty hospitals
with nearly 4,000 beds, the Healthcare industry plays a prominent role in
the Richmond economy. The health care occupations are projected to create
2.3 million jobs over the next decade, or about one in four new jobs. Within
twelve miles of the Property are the three best hospitals in the Richmond
metropolitan area, and three of the top ten ranked hospitals in the state.
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The Spectrum Deco at CNB Courtyard Lofts
Cookie Factory Lofts 8th & Main The Cooperage Cary Street
StationMarket Unit Count 103 200 90 178 194 117 277 Year Delivered 2015 2016 2016 2015 2016 2018 2017 Occupancy 92.2% 98.5% 100.0% 100.0% 99.5% 100.0% 100.0%Average Market Unit Size 732 571 800 870 721 925 897 Average Market Unit Rent $1,197 $1,228 $1,257 $1,354 $1,400 $1,578 $1,598Average Rent Per SF $1.64 $2.15 $1.57 $1.56 $1.94 $1.71 $1.78STUDIORent $1,005 $1,042 $829Sq Ft 492 475 480 - - - -Rent per Sq Ft $2.04 $2.20 $1.731 BEDROOMRent $1,112 $1,204 $997 $1,087 $1,349 $1,547 $1,343Sq Ft 679 550 602 721 675 856 630Rent per Sq Ft $1.64 $2.19 $1.66 $1.51 $2.00 $1.81 $2.131 BEDROOM + DENRent $1,183 $1,442 $1,441Sq Ft - - - 832 - 806 868Rent per Sq Ft $1.42 $1.79 $1.662 BEDROOMRent $1,352 $1,812 $1,485 $1,567 $1,823 $1,668 $1,809Sq Ft 896 858 973 983 1,019 1,034 1,088Rent per Sq Ft $1.51 $2.11 $1.53 $1.59 $1.79 $1.61 $1.662 BEDROOM + DEN/LOFTRent $1,600Sq Ft - - - 930 - - -Rent per Sq Ft $1.723 BEDROOMRent $1,758 $2,204 $2,526Sq Ft 1,154 - - 1,313 - - 1,502Rent per Sq Ft $1.52 $1.68 $1.68
RENT COMPS
SALE COMPS
Date Property Name Address City Units Avg SF Yr Built Price ($) $/Units $/sf Cap Rate Owner/Buyer SellerOct-18 James River at Stony Point 9201 Stony Point Pkwy Richmond 282 1,060 2017 62,000,000 219,858 207 5.66% Zaremba Management Co The Monument Companies, Sensei Development
Jun-17 Terraces At Manchester 800 Semmes Ave Richmond 148 823 2015 30,125,000 203,547 247 5.52% Richmond Terraces LLC Sensei Development, The Monument Companies
Jan-19 Swift Creek Commons 13101 Lowery Bluff Way Midlothian 312 1,142 2004 59,500,000 190,705 167 Sentinel Real Estate Forest City (REIT)
Jun-19 The Park at Salisbury 401 Lancaster Gate Dr Midlothian 320 1,050 2004 58,947,348 184,210 175 5.5% Kushner Companies Forest City (REIT)
Aug-15 The Belvedere 11900 Bellaverde Cir Richmond 296 1,029 2005 53,200,000 179,730 175 5.5% Fairfield Residential, Brookfield Prop Prtnrs Cedar Grove Partners
Aug-19 Terrace 202 202 N 20th St Richmond 59 681 2014 9,779,412 165,753 243 Blackfin Real Estate Investors, GMF Capital RC Evans Mgmt Group Jul-19 Vida East 1903 E Marshall ST Richmond 178 597 2018 28,000,000 157,303 263 5.58% SNP Properties RC Evans Mgmt Group
Aug-19 Old Stone Row 2005 E Franklin St Richmond 96 722 2011 14,500,000 151,042 209 GMF Capital, Blackfin Real Estate Investors Paradigm CompaniesJun-17 2001 East 2001 E Broad St Richmond 75 659 2011 9,675,000 129,000 196 7.87% Thalhimer Realty Prtnrs McCann Realty Partners, Artemis RE PartnersOct-14 The James 601 W Bacon St Richmond 269 1,121 2012 33,625,000 125,000 112 6.36% Lubert-Adler, Candlebrook Properties SugarOak Investments
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Date Property Name Address City Units Avg SF Yr Built Price ($) $/Units $/sf Cap Rate Owner/Buyer SellerOct-18 James River at Stony Point 9201 Stony Point Pkwy Richmond 282 1,060 2017 62,000,000 219,858 207 5.66% Zaremba Management Co The Monument Companies, Sensei Development
Jun-17 Terraces At Manchester 800 Semmes Ave Richmond 148 823 2015 30,125,000 203,547 247 5.52% Richmond Terraces LLC Sensei Development, The Monument Companies
Jan-19 Swift Creek Commons 13101 Lowery Bluff Way Midlothian 312 1,142 2004 59,500,000 190,705 167 Sentinel Real Estate Forest City (REIT)
Jun-19 The Park at Salisbury 401 Lancaster Gate Dr Midlothian 320 1,050 2004 58,947,348 184,210 175 5.5% Kushner Companies Forest City (REIT)
Aug-15 The Belvedere 11900 Bellaverde Cir Richmond 296 1,029 2005 53,200,000 179,730 175 5.5% Fairfield Residential, Brookfield Prop Prtnrs Cedar Grove Partners
Aug-19 Terrace 202 202 N 20th St Richmond 59 681 2014 9,779,412 165,753 243 Blackfin Real Estate Investors, GMF Capital RC Evans Mgmt Group Jul-19 Vida East 1903 E Marshall ST Richmond 178 597 2018 28,000,000 157,303 263 5.58% SNP Properties RC Evans Mgmt Group
Aug-19 Old Stone Row 2005 E Franklin St Richmond 96 722 2011 14,500,000 151,042 209 GMF Capital, Blackfin Real Estate Investors Paradigm CompaniesJun-17 2001 East 2001 E Broad St Richmond 75 659 2011 9,675,000 129,000 196 7.87% Thalhimer Realty Prtnrs McCann Realty Partners, Artemis RE PartnersOct-14 The James 601 W Bacon St Richmond 269 1,121 2012 33,625,000 125,000 112 6.36% Lubert-Adler, Candlebrook Properties SugarOak Investments
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2020 K Street NW, 11th Floor
Washington, DC 20006
Brian CrivellaJLL Capital Markets
Managing [email protected]
Walter CokerJLL Capital Markets
Managing [email protected]
Robert JenkinsJLL Capital Markets
Danny HollyJLL
Senior Vice [email protected]
