ONE SOUTH COMMERCIAL

PETERSBURG MULTIFAMILY PORTFOLIO[1]

FOR SALE | MULTIFAMILY + COMMERCIAL IN CHURCH HILL

325 N 27TH ST | 2707-09 E MARSHALL STRichmond VA 23223

$1,400,000PID: E00004830270.06 AC (2,712 SF) Parcel Area4,472 Building Area3 Residential Units2 Commercial UnitsUB-PE5 Urban Business Zoning

325 N 27th ST | RICHMOND VA

TABLE OF CONTENTS

Communication:One South Commercial is the exclusive representative of Seller in its disposition of 325 N 27th St. 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 PROPERTY SUMMARY

4 PHOTOS

10 RICHMOND METRO AREA

11 RICHMOND ECONOMIC DEVELOPMENT

12 RICHMOND MAJOR EMPLOYERS

13 DEMOGRAPHICS & EAST END RETAIL MARKET

15 LOCATION MAP

16 ONE SOUTH COMMERCIAL TEAM

UB-PE5URBAN BUSINESS

ZONING

4,472 SFGBA

2STABLE COMMERCIAL

TENANTS

2 STORIES

3RESIDENTIAL UNITS

325 N 27th ST | RICHMOND VA[3]

One South Commercial is pleased to present for sale this mixed use building in Richmond’s Church Hill. As one of the most historic mixed use neighborhoods in the country, Church Hill is the perfect home for this building featuring two commercial units at ground level and three residential units located on the second level.

Its prominent location at the intersection of N 27th St and E Marshall St in the heart of Church Hill places this property at the hub for both residential and commercial activity in the area. One of the commercial spaces is currently occupied by the popular 8 1/2 Italian Takeout. The second space at the corner of the building was previously occupied by WPA Bakery and is currently being renovated into JJ’s Makery -- a new bakery run by WPA’s former employees.

In addition, three renovated apartments blend modern features with the historic charm of 1900 construction. Two of the apartments are configured as 2bed/1bath units, and the third is a 2bed/2bath unit. Each unit features a direct private entrance from either N 27th St or E Marshall St, hardwood floors, modern kitchens, and updated bathrooms. All units also have a consistent history of being occupied.

The Church Hill neighborhood is garnering national recognition for its vibrant food and urban living scene as numerous publications have produced rave reviews of the restaurants, bakeries, cafes, and boutiques in the area. With its stately pre-Civil War homes as the centerpiece, the neighborhood is one of the most sought after areas to live in Richmond. Close to VCU Health Systems, the Central Business District, the State Capitol and numerous state offices, the Federal Court House, and the City of Richmond’s government center, 325 N 27th St is prominently positioned in the economically growing Church Hill neighborhood.

This location combined with the consistent revenue from the commercial and residential units make this listing an ideal investment for a buyer looking for a prominent mixed use property in Church Hill.

3 Unit Multifamily + 2 Commercial Spaces

325 N 27th ST | RICHMOND VA[4]

325 N 27th ST | RICHMOND VA[5]

325 N 27th ST | RICHMOND VA[6]

Famous for their pizzas, 8 1/2 is a long-time Richmond favorite. The Church Hill location opened in 2018 and follows the success of the original location in the Fan District.

325 N 27th ST | RICHMOND VA[7]

Formerly WPA Bakery, the corner commercial unit is being converted into JJ’s Makery, a bakery run by former employees of WPA.

325 N 27th ST | RICHMOND VA[8]

325 N 27th ST | RICHMOND VA[9]

325 N 27th ST | RICHMOND VA[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

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

View of Downtown Richmond along Broad St

#39RICHMOND VA

325 N 27th ST | RICHMOND VA[11]

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%

325 N 27th ST | RICHMOND VA[12]

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

1

2

4

56

7

8

9

10

11

12

13

14

20 MIN DRIVE

30 MIN DRIVE

DOWNTOWN 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

15

325 N 27th ST | RICHMOND VA[13]

PETERSBURG DEMOGRAPHICS*DEMOGRAPHICS & RETAIL SUBMARKET DATA

60,150POPULATION

$55,793AVG HOUSEHOLD

INCOME

3.3%POPULATION GROWTH

PAST 10 YEARS

DEMOGRAPHICS (WITHIN 2 MILES) DISTANCE FROM PROPERTY 2 MILE 5 MILE 10 MILE

Population:

2010 Population 45,112 210,225 522,663

2020 Population 60,150 238,797 576,927

2025 Population Projection 64,661 250,302 601,689

Annual Growth 2010-2020 3.3% 1.4% 1.0%

Annual Growth 2020-2025 1.5% 1.0% 0.9%

Households:

2010 Households 16,005 82,438 198,271

2020 Households 26,149 100,646 235,138

2025 Household Projec- 28,226 105,492 245,084

Annual Growth 2010-2020 2.1% 0.5% 0.5%

Annual Growth 2020-2025 1.6% 1.0% 0.8%

Owner Occupied 7,623 42,693 132,874

Renter Occupied 18,526 57,953 102,264

Avg Household Income $55,793 $66,262 $76,518

Median Household Income $39,570 $46,082 $57,300

< $25,000 9,007 27,482 48,240

$25,000 - 50,000 6,435 26,867 56,649

$50,000 - 75,000 4,203 16,120 42,264

$75,000 - 100,000 2,787 11,249 29,974

$100,000 - 125,000 1,651 7,168 22,393

$125,000 - 150,000 729 3,718 12,106

$150,000 - 200,000 613 3,477 11,248

$200,000+ 724 4,565 12,264

Market Rent/SF $14.45

Vacancy Rate 4.8%

Availability Rate 2.4%

Available SF 212K

Months on Market 27.4

6 Month Leasing Probability 26.7%

Existing Buildings 508

Average Building SF 8.8K

12 Month Transactions 13

Sale Price/SF $138

Average Sale Price $1.2M

12 Month Sales Volume $15M

Market Cap Rate 8.4%

EAST END RETAIL SUBMARKET

325 N 27th ST | RICHMOND VA[14]

RICHMOND MSA

MEDIAN PROPERTY VALUE

$251,200POPULATION

1.29MMEDIAN HOUSEHOLD INCOME

$68,324NUMBER OF EMPLOYEES

659,986MEDIAN AGE

39.1MEAN HOUSEHOLD INCOME

$94,725

RICHMOND CITY

325 N 27th ST | RICHMOND VA[15]

LOCATION MAP

W BROAD ST

RICHMOND325 N 27TH ST

SCOTT’S ADDITIONWEST END

MANCHESTER

WESTOVER HILLS

FOREST HILL

FAN DISTRICT

NORTH SIDE

CHURCH HILL

JAMES RIVER

SOUTH RICHMOND

CH

AMBERLAYN

E AVE

HULL ST

MIDLOTHIAN TPK

MEC

HANI

CSVI

LLE

TPK

CARYTOWN

MUSEUM DISTRICT

AZALEA PLACE APARTMENTS[16][16]PETERSBURG MULTIFAMILY PORTFOLIO[16]

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.

LORY MARKHAM | 804.248.2561 | lory.markham@onesouthcommercial.com

As Principal Planner for the City of Richmond, Lory’s experience includes serving as Secretary to the city’s Planning Commission and overseeing the review of all development projects in the City that need special approval. Her contributions to development in the City were recognized in her selection as a “Top 40 Under 40” by Style Weekly. After over a decade of experience in development review and land use planning with the City of Richmond, Lory joins One South Commercial as a commercial agent. She brings with her extensive knowledge of the Richmond market, zoning and development review process, historic tax credits, and neighborhood development.