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1859 & 1861 Kingston Avenue Apartments1859 & 1861 Kingston Avenue, Norfolk, VA 23503

N O N - E N D O R S E M E N T A N D D I S C L A I M E R N OT I C EN O N - E N D O R S E M E N T SMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee iden-tified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorse-ment by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, ser-vice, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Exclusively Listed By: ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

D I S C L A I M E R : THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or war-ranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate In-vestment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. ZAB0600043.

Altay UzunFirst Vice President, Investments

Hampton Roads & Richmond Offices

Justin FergusonInvestment Associate

Hampton Roads & Richmond Offices412.849.9977

Kyle P. GrossSenior Investment Associate

Raleigh Office

Shelby JacobsMarketing CoordinatorHampton Roads Office

908.910.1572

www.midatlanticmultifamily.com

1859 & 1861 Kingston Ave Apartments

1859 & 1861 Kingston Avenue Norfolk, VA 23503

Prime Ocean View Location

Table of Contents

1859 & 1861 Kingston AvenueNorfolk, VA

7Property Description

Property DetailsRegional Map

Local Retail MapProperty Pictures

25Market OverviewLocation OverviewLocation HighlightsEconomic Overview

Demographics

47Financial AnalysisFinancial SummaryUnit Mix Analysis

Operating Statements

35Comparable Properties

Sales ComparablesMap

Rent ComparablesMap

10-Units in Ocean View, Norfolk

Prop e r t y Descr ipt ion

Property Details

Address: 1859 & 1861 Kingston Avenue

Total Units: 10 Units

Parcel Number: 1540880797

Buildings: 2 Buildings

Legal Description: Lot Z, Blk 8, Cottage Park

Year Built: 1965

Occupancy: 100%

Gross Building SqFt: 8,800 SqFt

Lot Size: 0.3329 Acres

Total Parking: 1 per Unit

HVAC: Central

1859 & 1861 Kingston Avenue

Water/Sewer: Owner Paid - Billed Back

Garbage/Recycling: Owner Paid

Electric: Tenant Paid

Util ities

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1859 & 1861 Kingston Avenue A p a r t m e n t s

1 8 5 9 & 1 8 6 1 K i n g s to n Ave n u e , N o r f o l k , VA 2 3 5 0 3 U n i t A m e n i t i e s

Hardwood Flooring

Matching Appliances

Tile Flooring

Ceiling Fans

Central A/C

In-Unit Washers & Dryers

The Marcus & Millichap Mid-Atlantic Multifamily Advisory Group is pleased to present the pricing and financial analysis for 1859 & 1861 Kingston Avenue located in the West Ocean View neighborhood of Norfolk, VA.

The property features 10-units in two two-story buildings built in 1965 and situated on +/- 0.3329 acres. The property features four (4) 750 sqft two-bedroom one-bathroom units, two (2) 900 sqft two-bed-room two-bathroom units, and four (4) 1,000 sqft three-bedroom two-bathroom units. Amenities include hardwood floooring, car-peting, ceiling fans, matching appliances, in-unit W&D, and pet friendly units. Located in West Ocean View, the property’s prime location enjoys the benefits of not only Hampton Roads liveliest metro, but also the most prominent arts and culture district in the entire MSA. 1859 & 1861 Kingston Avenue also provides quick ac-cess to downtown Norfolk and Norfolk’s Waterside District.

The Hampton Roads economy is heavily diversed home to the fastest growing port on the East Coast, two Fortune 500 companies, low business costs, global access, and a robust talent pipeline. Hampton Roads is well known for its ports, shipyards, maritime related industries, aerospace, food and beverage processing, and is home to every branch of the U.S. Armed Forces. Hampton Roads seven universities and three community colleges graduate +/- 17,000 students annually, consistently supplying a highly skilled workforce.

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Offering Highlights

Residents have access to Bay View Elementary School,

Lake Taylor Middle School, and Norview High School.

Amenities

Built-In Microwaves

Matching Appliances

Ceiling Fans


Off StreetParking

Hardwood Flooring

Value Add Opportunity with Rent Growth Potential Located near the Chesapeake Bay.

Convenient Access to Major Transportation Arteries including

Route 60, Route 13, and Interstate 64.

1859 & 1861 Kingston Avenue

Abundant Recreational ActivitiesLocated on the Chesapeake Bay pro-vides ample activities including fishing,

swimming, kayaking, surfing, volley-ball, and many more.

Prime LocationClose proximity to schools, higher ed-ucation institutions, employment cen-

ter, shopping, and retail amenities.

Diverse Employment BaseDiverse regional employment base

focusing on military, shipping, health-care, and business services.

In-UnitWashers &

Dryers

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Investment Highlights• The Offering: market rate commu-

nity catering to military and working professionals.

• Strong Rental Market: positive rent growth forecasts. New construction has slowed facilitating a demand for rent growth.

• Ideal Demographic for Multifami-ly Demand: High affordability gap in-creased the rent-by-necessity demo-graphic combined with a strong 20-34 age renter cohort from the abundant military presence and numerous high-er educational institutions.

• Abundant Population Growth: 5.2% 30-34 year old population growth for the past 5 years.

• Prime Location: located near East Ocean View Avenue within walking distance to retail and recreational activities and only 6 miles from Joint Expeditionary Base Little Creek-Fort Story.

• Close Proximity to Chic’s Beach: 15 minute drive from Chic’s Beach and surrounding top attractions in-cluding a vibrant night-life, savory restaurants, breweries, and outdoor recreational activities.

• Strategic Value-Add: investors have the opportunity to implement a light interior upgrade and en-hance the community amenities to capture additional rental premi-ums.

1859 & 1861 Kingston Ave$1.2M | 10 Units

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venueINTERIOR AMENITIES

Hardwood FlooringCeiling Fans

Matching AppliancesTile FlooringCentral A/C


COMMUNITY AMENITIES

Off Street ParkingPrime Location

In General:Added RUBS System: 9 out of 10 tenants are currently on RUBS system.

Retenanted the building with new paying tenants.

Replaced GFCI receptacles in 10 kitchen units.

Parking Lot: Sawcut and removed 4 areas as marked on concrete and re-poured. Restriped parking spaces and numbers. Put in 1 handicap space.

1859 Building:Replace exterior light fixtures at all front doors only.

Install vinyl beaded ceilings over 2nd floor deck.

Install 15 stick on nonskid strips over stair treads.

Replace exterior pressure treated balusters on rear stairs and deck where missing.

Paint all exterior doors and re-letter.

1861 Building:Remove/replace 2 exterior flush mount light fixtures at lobby front door. Install

light globes where missing.

Remove/replace 2 broken pressure treated stair rails.

Remove wood lattice surrounding A/C compressor.

Repair metal siding where gaps and holes appear on rear of building.

Remove/replace unit 2 exterior front entry door and re-use lockset.

Install 15 stick on nonskid over stair treads.

Replace 4 missing interior balusters in lobby and hallway.

Paint exterior metal siding on right gable end with white Direct to Metal paint.

Paint all exterior doors and re-number.

Repair windowsill in unit 3.

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“Nor fo l k i s a fun , v ib rant ente r ta inment and cu l tu re , de l ic ious cu i s ine and 144 mi les o f shore l ine wa i t ing to be ex -p lo red!

Wi th the Chesapeake Bay , At lant ic ocean and count les s r i ve r s in ou r back-yard , you a re never fa r f rom the water . Nor fo l k ’ s th r i v ing a r t s communi ty we l -comes you in to i t s s tud ios , ga l le r ie s and up and down the s t reet s o f downtown, the NEON Ar t s D i s t r ic t and beyond. I f you’ re look ing fo r wor ld -c las s cu i s ine , look no fu r ther ! F rom t rad i t iona l South-e rn fa re to a w ide range of nouveau and in te rnat iona l o f fe r ings Nor fo l k ’ s eate r ies o f fe r someth ing fo r everyone – and every appet i te .”

C i t y O fN o r f o l k“Nor- fok”“Naw-fok”

Mark e t Overview

Norfo

lk, V

A

Superb DemographicsThe submarket’s proximity to major em-ployment centers, high end retail, historic neighborhood charm, on the water perks, and central location make it a desirable place of residence for tenants of all ages.

242,742Total

Population

30.5Median

Age

$49,146Median

HouseholdIncome

88,155Total

Households

2.49Average

People perHousehold

Market Leading DemographicsSuperb Apartment Fundamentals

The market’s proximity to major employment centers, high end retail, historic neighborhood charm, close proximity to the water, and central location make

it a desirable place of residence for tenants of all ages.

Hampton Roads

Total Households: 701,456

Average Household Size: 2.53

Median Household Income: $67,583

Median Age: 35.4

Vacancy (Q4): 5.41%

Median Home Price (Q4): $247,500

Monthly Mortgage Payment: $1,490

Average Asking Rent (Q4): $1,088

Affordability Gap: 26.9%

Hampton Roadsat a glance

4%Population Growth ‘10-’19

25.9%of the Population Between

18-34 Years Old

90%High School Graduate or Higher

$67,583Median Household Income

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Norfolk SFR Values

According to Zillow, the median home sale price in Norfolk is $197,700 with the cur-rent median listed home price of $223,000.

Norfolk home values have increased 4.2% over the past year. This growth in the price of single family homes has created a widening gap between the average monthly rents compared with the average monthly mortgage payment on a single family home.

Affordability GapNorfolk

$1,20

0

Affordability Gap$108/month

$1,108

$1,000

Average Rent at 1859 & 1861Kingston Ave

Monthly Payment on a Median Priced Home

$190K

$180K

$200K

$170K2019201820172016

Robust EmploymentClose Proximity to Numerous Employment Centers

The property’s convenient location, located 1 mile away from the Hamp-ton Roads Beltway, provides easy ac-cess to all that the Hampton Roads region has to offer including em-ployment centers, local attractions, and retail destinations. Between 2017 and now, Hampton Roads added 11,000 jobs in the pro-fessional and business services sector, representing a 10% increase according to the Bureau of Labor Statistics. Hampton Roads is home to two Fortune 500 compa-nies, Dollar Tree in Ches-apeake and Huntington Ingalls Shipbuilding in Newport News.

Affordability Gap to HomeownershipNorfolk, VA

Current average rent at 1859 & 1861 Kingston Avenue is $108 per month less than the monthly mortgage payment on a median priced single family home in the area. There is ample room to increase rents at the subject property while still maintaining the affordability gap.

Strong Submarket FundamentalsHealthy Housing Market with Significant Runway for

Rent Growth and Apartment Asset Performance

Hampton Roads

United States

Key:

Based on CoStar Estimates for the Hampton Roads MSA and the United States; January 2020.

Median Household Income

Q4 2019

Q3 2019

Q2 2019

$66,070$62,469

Q1 2019

$66,563$63,020

$67,072$63,574

$67,583$64,116

Q4 2019

Q3 2019

Q2 2019

$1,072$1,337

Q1 2019

$1,089$1,356

$1,087$1,335

$1,087$1,355

Average Market Rent

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24,176 Students as of Fall 2018

Downtown Norfolk



Norfolk Premium Outlets

Chic’s BeachOcean ViewBeach Park

Strategic LocationLocated 5.6 Miles from the Norfolk International Airport serving coastal VA and northeast NC !

City of Norfolk

“Norfolk is a fun, vibrant entertainment and cul-ture, delicious cuisine and 144 miles of shoreline waiting to be explored!

With the Chesapeake Bay, Atlantic Ocean and count-less rivers in our backyard, you are never far from the water. Norfolk’s thriving arts community welcomes you into its studios, galleries and up and down the streets of downtown, the NEON Arts District and be-yond. If you’re looking for world-class cuisine, look no further! From traditional Southern fare to a wide range of nouveau and international offerings Norfolk’s eateries offer something for everyone – and every ap-petite.”

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AccessibilityPart of Ocean View’s appeal is its plethora of bou-tiques, restaurants, nightlife, and recreational ac-

tivities for the whole family to enjoy.

Walk ScoreSome errands can be

accomplished on foot.

Some TransitA few nearby public

transportation options.

Bike ScoreFlat as a pancake, minimal bike lanes.

413147

BOverall Niche

Grade for Ocean View

“Norfolk’s relaxing beach communities of Ocean View and East Beach will leave you feeling as though you’re in a whole other world-one filled with fresh seafood, sand and seaside fun.”

...magnificent sunrises and sunsets. Perfect for the whole family!

- Niche Review

““

East Beach

Chesapeake Bay

E Ocean View Ave

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Mark e t Comparables

1859 & 1861 Kingston Ave1 6228-6240 Chesapeake Blvd2 233 W Ocean View Ave3 Casa Playa4 1st Bay Street Portfolio

S a l eCOMPARABLES

2

1

3

4

1859 & 1861Kingston Ave

$0

A v e r a g e$149,928

6228-6240Chesapeake

Blvd

233 W OceanView Avenue

Casa Playa

A v e r a g e P r i c e / U n i t :

$135

,714

$125

,000

$109

,000

$50,000

$100,000

$150,000

$120

,000

$200,000

$250,000

$230

,000

1st BayStreet

Portfolio

1859 & 1861 Kingston AvenueNorfolk, VA 23503

Offering Price: $1,200,000

Units: 10 Units

Price/Unit: $120,000/Unit

Year Built: 1965


Rentable SqFt: 8,800 SF

Price/SqFt: $136.36

Unit Mix: 4 - Two Bed One Bath

2 - Two Bed Two Bath

4 - Three Bed Two Bath

Amenities: Ceiling Fans, Hardwood Flooring, Matching Appliances, Built-In Microwaves, Tile Flooring, Central A/C, Carpeting, and In-Unit W&D.

100

6228-6240 Chesapeake BoulevardNorfolk, VA 23513

Amenities: Laminate Wood Flooring

Matching AppliancesBaseboard Heating

Wall A/C Unit Provided

2 Bedroom

Sale Price: $1,900,000

COE: February 7, 2019

Units: 14 Units


Year Built: 1985


Rentable SqFt: 29,088 SqFt

Price/SqFt: $65.32

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100

233 W Ocean View AvenueNorfolk, VA 23503

Amenities: Carpeting

Tile FlooringBaseboard Heating

Matching White AppliancesWall A/C Unit Provided

2 Bedroom


COE: September 26, 2017

Units: 12 Units


Year Built: 1974



Price/SqFt: $312.50

2

20+80

Casa Playa1033 Little Bay Avenue, Norfolk, VA 23503

Amenities: On-the-Water Location

Hardwood FlooringSpiral Staircase

Matching AppliancesCeiling Fans

1 Bedroom

Sale Price: $545,000

COE: July 17, 2017

Units: 5 Units


Year Built: 1969



Price/SqFt: $121.11

3

2 Bedroom

40+60

1st Bay StreetNorfolk, VA 23518

Amenities: Carpeting

Laminate Wood FlooringBaseboard HeatingOff Street Parking

Matching Appliances


COE: April 3, 2019

Units: 20 Units


Year Built: 1970


Price/SqFt: $305.81

4

2 Bedroom1 Bedroom

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1859 & 1861 Kingston Avenue1 2016 E Ocean View Avenue2 Pleasant Village Apartments3 1874 Kingston Avenue4 Walker’s Chase Townhomes5 Pinewood Gardens

R e n tCOMPARABLES

13

5

42

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$0

A v e r a g e$1,138 (+$240)

2016 E Ocean View

Avenue

Pleasant Village

Apartments

Walker’s Chase

PinewoodGardens

Tw o B e d r o o m R e n t :

$950

$1,2

50

$950

1874 KingstonAvenue

$1,5

14

$995

$200

$400

$891$800

$1,000

$600

$1,200

$1,400

$1,600

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100Units Type SF Rent Rent/SF

19 2 Bed 1 Bath 800 $950 $1.19

19 Totals/Wtd Avg 800 $950 $1.19

Amenities:Linoleum Flooring

Ceiling FansCarpeting

Matching White AppliancesOff Street Parking

2 Bedroom



Year Built: 1948


2016 E Ocean View AvenueNorfolk, VA 23503

Units Type SF Rent Rent/SF

4 2 Bed 1 Bath 750 $869 $1.16

2 2 Bed 2 Bath 900 $913 $1.01

4 3 Bed 2 Bath 1,000 $1,174 $1.17

10 Totals/Wtd Avg 880 $1,000 $1.14

Amenities:Hardwood Flooring

Tile FlooringStainless Steel Appliances

Built-In MicrowavesCentral A/C



Year Built: 1965


Occupancy: 100%

1859 & 1861 Kingston AvenueNorfolk, VA 23503

1T h r e e B e d r o o m R e n t :

1859 & 1861KingstonAvenue

$0

A v e r a g e$1,435 (+$261)

Walker’s Chase

PinewoodGardens

$1,6

99

$1,1

72

$200

$400

$1,1

74

$800

$1,000

$600

$1,200

$1,400

$1,600

$1,800

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100100Units Type SF Rent Rent/SF

48 2 Bed 2 Bath 950 $1,200-$1,300 $1.32

48 Totals/Avg 950 $1,250 $1.32

Amenities:Carpeting

Vinyl Wood FlooringStainless Steel Appliances

DishwashersTile Flooring

2 Bedroom



Year Built: 1988


Pleasant Village Apartments4930 Pleasant Avenue, Norfolk, VA 23518

2

Units Type SF Rent Rent/SF

4 2 Bed 1 Bath 862 $950 $1.10

4 Totals/Wtd Avg 862 $950 $1.10

Amenities:Hardwood Flooring

Matching White AppliancesDishwashersCentral A/C

Tiled Bathrooms2 Bedroom



Year Built: 1950


1874 Kingston AvenueNorfolk, VA 23503

3

91+9Units Type SF Rent Rent/SF

56 2 Bed 2.5 Bath 1,400 $1,514 $1.08

6 3 Bed 2.5 Bath 1,700 $1,699 $1.00

71 Totals/Wtd Avg 1,550 $1,606 $1.04

2 Bedroom



Year Built/Renovated: 1967/2010

Walker’s Chase Townhomes8581 Tidewater Dr, Norfolk, VA 23503

53+8+37+2

# Type SF Rent Rent/SF

12 Studio 1 Bath 500 - -

281 1 Bed 1 Bath 835-878 - -

409 2 Bed 1 Bath 995-1,038 $935-$1,055 $0.98

59 3 Bed 1.5 Bath 1,115 $1,125-$1,220 $1.05

761 Totals/Avg 893 $1,083 $1.02

Amenities:Private Patio/Balcony

Ceiling FansFully Equipped Kitchens

PoolsFitness Center

Laundry Facilities



Year Built: 1963

Pinewood Gardens1731 E Little Creek Rd, Norfolk, VA 23518

54

3 Bedroom

Studio 1 Bedroom2 Bedroom 3 Bedroom

Amenities:Pool

Bark ParkPlank Flooring

In-Unit Full-Size W&DShaker-Style Cabinetry

Private Fenced-In Patios

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1859 & 1861 Kingston Avenue | Pricing Detail

Price $1,200,000

Down Payment 25% $300,000

Number of Units 10 Units

Price Per Unit $120,000

Rentable SqFt 8,800 SF

Price Per SqFt $136.36

Lot Size (Acres) 0.34 Acres

Lot Size (SqFt) 14,810 SF

Year Built 1965

Occupancy 100%

Returns Current Year 1

Cap Rate 7.07% 7.65%

GRM Rate 10.01 9.17

Cash-on-Cash 8.97% 11.27%

Debt Coverage Ratio 1.46 1.58

Current Potential

Unit Type # of Units

Avg SF

Avg Rent

Avg Rent/SF

MonthlyIncome

Avg Rent

Avg Rent/SF

MonthlyIncome

Two Bed One Bath 4 750 $869 $1.16 $3,475 $925 $1.23 $3,700

Two Bed Two Bath 2 900 $913 $1.01 $1,825 $1,050 $1.17 $2,100

Three Bed Two Bath 4 1,000 $1,174 $1.17 $4,695 $1,250 $1.25 $5,000

Totals/Averages 10 880 $1,000 $1.14 $9,995 $1,080 $1.23 $10,800

Gross Annual Rents $119,940 $129,600

Financing 1st Loan

Loan Amount $900,000

Loan Type New

Interest Type 5.00%

Amortization 30 Years

Year Due 2029

Finan c i a l Analysis

1859 & 1861 Kingston Avenue | Operating StatementIncome Current Year 1 Notes Per Unit Per SF Gross Potential Rent 129,600 130,896 [1] 13,090 14.87Loss / Gain to Lease (9,660) 7.5% 0 0 0.00Gross Current Rent 119,940 130,896 13,090 14.87Physical Vacancy (4,798) 4.0% (3,927) 3.0% [2] (393) (0.45)Bad Debt (2,400) 2.0% (1,309) 1.0% [3] (131) (0.15)Total Vacancy (7,198) 6.0% (5,236) 4.0% (524) (1)Economic Occupancy 94.00% 96.00%Effective Rental Income 112,742 125,660 12,566 14.28Utility Bill-Back 5,477 5,477 [4] 548 0.62Effective Gross Income 118,219 131,137 13,114 14.90

Expenses Current Year 1 Notes Per Unit Per SF Real Estate Taxes 7,743 12,350 [5] 1,235 1.40Insurance 2,500 2,500 [6] 250 0.28Utilities - Water & Sewer 5,827 5,827 [7] 583 0.66Repairs & Maintenance 4,000 4,500 [8] 450 0.51Contract Services 2,000 2,000 [9] 200 0.23Marketing & Advertising 500 500 [10] 50 0.06General & Administrative 1,000 1,000 [11] 100 0.11Operating Reserves 1,500 1,500 [12] 150 0.17Management Fee 8,275 7.0% 9,180 7.0% [13] 918 1.04Total Expenses 33,345 39,357 3,936 4.47Expenses as % of EGI 28.2% 30.0%Net Operating Income 84,874 91,781 9,178 10.43

[1] Current Gross Potential Rent is based on actuals per the rent roll. Pro Forma Gross Potential Rent is based on current market averages.

[2] Current and Pro Forma Physical Vacancy is a conservative assumption based on market averages. The property is cur-rently 100% occupied.

[3] Current Bad Debt reflect actuals. Pro Forma Bad Debt is a conservative improvement to property stabilization.

[4] Current and Pro Forma Utility Bill-Back reflect actuals.

[5] Current Real Estate Taxes reflect actuals. Pro Forma Real Estate Taxes are based on estimated sales price and Norfolk City mill rate.

[6] Current and Pro Forma Insurance costs are calculated at $250 per unit per year.

[7] Current and Pro Forma Water and Sewer Utility costs reflect actuals.

[8] Current Repairs and Maintenance costs reflect actuals. Pro Forma Repairs and Maintenance costs are estimated at $550 per unit per year.

[9] Current and Pro Forma Contract Services costs are calculated at $200 per unit per year.

[10] Current and Pro Forma Marketing and Advertising costs are calculated at $50 per unit per year.

[11] Current and Pro Forma General & Administrative costs are calculated at $100 per unit per year.

[12] Current and Pro Forma Operating Reserve costs are calculated at $150 per unit per year.

[13] Current and Pro Forma Management Fee expenses are calculated at 7%.

1859 & 1861 Kingston Avenue | Notes to the Operating StatementFI

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Altay UzunFirst Vice President, Investments

Justin FergusonInvestment Associate

412-849-9977

Kyle P. GrossSenior Investment Associate

Shelby JacobsMarketing Coordinator

908.910.1572

Exclusively Listed By:

images1.loopnet.com...or endorsed by any commercial tenant or lessee iden-tified in this marketing...

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