INVESTMENT HIGHLIGHTS
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Outstanding Property Performance Trends: Strong organic rent growth trends where Recent 2 and 5 rents are averaging 11.6% (+$142) and 9.4% (+$115) greater than the Property’s avg. in-place rent, respectively.
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Epicenter, Tech Center Location : Located in the cradle of STEM, Tech Center Research Park is a 100-acre, $450M mixed-use development that supports 5,500+ jobs, encompassing 1.1M SF of state-of-the-art research, office and lab space and 250K SF of retail, serving as the economic engine for the City and region.
Value-Add Opportunity: 155 units are candidates for renovation with potential submarket upside premium of $250 to $300/unit.
EXECUTIVE SUMMARY
The Berkadia Real Estate Advisors Team is pleased to present the exclusive offering of Forest Lake at Oyster Point (the “Property”), a 296-unit Class B+ multifamily asset in Newport News, Virginia, one of the Mid-Atlantic region’s top-performing markets. Originally built in 1986, Forest Lake at Oyster Point is a Class B+ asset that commands a highly desirable location along the heavily trafficked Jefferson Avenue corridor of Newport News (50K vehicles/day) that is also home to a Whole Foods Market just north of the Property.
Forest Lake at Oyster Point provides investors with considerable value-add upside in that all units are prime candidates for focused upgrades that would allow the Property to capture the $484 rent spread that exists between the submarket’s top Class B renovated product (Compass at City Center) and Forest Lake at Oyster Point. A renovation strategy is highly supported by virtue of ownership already achieving average in-place premiums of $78 per unit on partially renovated units for an incredibly low renovation cost.
Multifamily submarket fundamental trends are stronger than ever in the region, allowing the Hampton Roads metro area to rank among the top of comparable Mid-Atlantic locations for effective rent growth performance. Berkadia’s Pyxis market intelligence indicates that Class B effective rents have grown by a staggering 32.5% over the past 36 months. This is further supported by Axiometrics’ survey of the submarket, where Axiometrics research also indicates effective rent growth of 27.0% over the past 36 months. These favorable submarket trends are allowing the Property’s rents to experience rapid acceleration, where Recent 2 and Recent 5 overall rents are $141 (+11.5%) and $115 (+9.4%) greater than the Property’s average in-place rent, respectively.
Forest Lake at Oyster Point commands a highly strategic location along Jefferson Avenue, minutes away from Jefferson Lab (4,400 supported jobs, $679M annual economic impact), Riverside Regional Medical Center that is part of the expansive Riverside Health System that supports 9,500+ jobs and over $1.2B of annual economic impact, and is also 1.4 miles from the City Center at Oyster Point business district (52 acre, mixed-use development with 1M SF of Class A office and 230K of retail and restaurants).
Forest Lake at Oyster Point is being offered on a Free & Clear Basis
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Property Overview
• 296 Total Units
• Built: 1986
• Submarket: Newport News
• Average Unit Size: 1,010 SF
• Total SF: 299,050 SF
• In-Place Rent/Unit: $1,228
• In-Place Rent/SF: $1.22
• Recent 2 Rent/Unit: $1,370
• Recent 2 Rent/SF: $1.36
THE ASSET
GALLERY
3802 Towne Point Rd, Portsmouth, VA 23703
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307 Saint Thomas Drive, Newport News, VA 23606
1,010
AVG Unit SF
299,050
NRA
296
UNITS
The Opportunity
The Asset
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Norfolk
207 Granby Street,
Suite 201,
Norfolk, VA 23510
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Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
© 2023 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by the Tax Credit Syndication group. For state licensing details for the above entities, visit: https://www.berkadia.com/licensing/.
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Prime Connectivity: Strategically located along highly trafficked Jefferson Avenue (50K vehicles/day), minutes away from Whole Foods (1 mile to the north), Jefferson Lab (5,500+ supported jobs), Riverside Regional Medical Center that is part of the expansive Riverside Health System (collectively supporting 9,500 jobs), and City Center at Oyster Point business district that is considered the Peninsula’s new “downtown.”.
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Top Ranked Effective Rent Growth Submarket : Ranks among the top Mid-Atlantic locations for effective rent growth performance, where Class B rents have grown by a staggering 32.5% over the past 36 months (Berkadia Pyxis).
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Consistent NOI Growth Trends Fueled by Exceptional Fundamentals: The Connelly’s annual NOI trends have consistently grown since acquisition of the property in 2021, where NOI has cumulatively grown by +$213,374 or alternatively +16%.
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Located within Short Proximity to Substantial Economic Drivers: Portsmouth benefits from being centrally located in the heart of Hampton Roads with close proximity to Old Dominion University (23,000 Students), Downtown Norfolk (28k jobs supported), Norfolk Naval Shipyard (12k job supported), and Sentara Norfolk General Hospital (3.5k jobs supported).
Miles Drinkwalter
Vice President
Multifamily Housing
757.652.9597
miles.drinkwalter@berkadia.com
Brian Gould
Managing Director
Multifamily Housing
917.297.7551
brian.gould@berkadia.com
Patrick McGlohn
Senior Managing Director
Multifamily Housing
703.987.0874
patrick.mcglohn@berkadia.com
MORTGAGE BANKING
Drew White
Senior Managing Director
Multifamily Housing
202.294.6976
drew.white@berkadia.com
Carter Wood
Senior Director
Multifamily Housing
804.350.2109
carter.wood@berkadia.com
Cole Carns
Director
Multifamily Housing
804.878.1258
cole.carns@berkadia.com
INVESTMENT SALES
Miles Drinkwalter
Vice President
Multifamily Housing
757.652.9597
miles.drinkwalter@berkadia.com
Brian Gould
Managing Director
Multifamily Housing
917.297.7551
brian.gould@berkadia.com
Patrick McGlohn
Senior Managing Director
Multifamily Housing
703.987.0874
patrick.mcglohn@berkadia.com
MORTGAGE BANKING
Drew White
Senior Managing Director
Multifamily Housing
202.294.6976
drew.white@berkadia.com
Carter Wood
Senior Director
Multifamily Housing
804.350.2109
carter.wood@berkadia.com
Cole Carns
Director
Multifamily Housing
804.878.1258
cole.carns@berkadia.com
INVESTMENT SALES
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Mission-Eligible Asset: Property rents introduce possibility for advantageous agency financing initiatives.
Hunter Wood
Senior Director
Multifamily Housing
804.513.6243
hunter.wood@berkadia.com
6.
Mission-Eligible Asset: Property rents introduce possibility for advantageous agency financing initiatives
• In-Place Rent/Unit: $1,228
• In-Place Rent/SF: $1.22
• Recent 2 Rent/Unit: $1,370
• Recent 2 Rent/SF: $1.36
Hunter Wood
Senior Director
Multifamily Housing
804.513.6243
hunter.wood@berkadia.com
© 2023 Berkadia Proprietary Holding LLC
Berkadia® is a trademark of Berkadia Proprietary Holding LLC
Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. This website is not intended to solicit commercial mortgage loan brokerage business in Nevada.
In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker Lic. #01931050, Berkadia Commercial Mortgage LLC under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing