Viceroy Apartments 1700 Chapel Hill Road, Durham, NC 27707 Viceroy Apartments
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Apartments Viceroy 1700 Chapel Hill Road, Durham, NC 27707 Viceroy Apartments A 24-Unit Stabilized Opportunity within 0.7 Miles from Renowned Duke University NON-ENDORSEMENT Exclusively Listed By: AND DISCLAIMER NOTICE Justin Ferguson NON-ENDORSEMENTS ALL PROPERTY SHOWINGS ARE BY APPOINTMENT Altay Uzun Investment Associate Vice President, Investments Marcus & Millichap is not affiliated with, sponsored by, ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP Hampton Roads & Richmond Offices Hampton Roads & Richmond Offices or endorsed by any commercial tenant or lessee iden- AGENT FOR MORE DETAILS. tified in this marketing package. The presence of any Davis Diethrich corporation’s logo or name is not intended to indicate DISCLAIMER: This information has been secured Kyle P. Gross Investment Associate or imply affiliation with, or sponsorship or endorse- from sources we believe to be reliable, but we make no Investment Associate Raleigh Office ment by, said corporation of Marcus & Millichap, its representations or warranties, express or implied, as to Raleigh Office affiliates or subsidiaries, or any agent, product, ser- the accuracy of the information. References to square [email protected] vice, or commercial listing of Marcus & Millichap, and Shelby Jacobs footage or age are approximate. Buyer must verify the Direct: (919)674-1129 Marketing Coordinator is solely included for the purpose of providing tenant information and bears all risk for any inaccuracies. Mar- Mobile: (919)710-6400 Hampton Roads Office lessee information about this listing to prospective cus & Millichap is a service mark of Marcus & Millichap customers. ZAA0780039. Real Estate Investment Services, Inc. © 2017 Marcus & 908.910.1572 Millichap. All rights reserved. www.midatlanticmultifamily.com Contents 7 PROPERTY DESCRIPTION 27 MARKET OVERVIEW 39 MARKET COMPARABLES 57 PRICING & FINANCIAL ANALYSIS 65 DEMOGRAPHIC ANALYSIS Property Details Apartments Viceroy Address: 1700 Chapel Hill Road Total Units: 24 Units Parcel Number: 0821-10-25-7973 Buildings: 2 Buildings Land Use Description: Com/Apartment-Garden Year Built: 1971 Occupancy: 91.67% Property Gross Building SqFt: 20,160 Lot Size: 0.746 Acres Description Total Parking: 2 per Unit HVAC: Central Utilities Water/Sewer: Owner Paid/Reimbursed by Tenants Garbage/Recycling Owner Paid/Reimbursed by Tenants Electric: Tenant Paid Property Description 7 LOCAL MAP REGIONAL MAP Viceroy Apartments Viceroy Apartments 24 Units 24 Units 8 Property Description Property Description 9 VICEROY Apartments 1700 Chapel Hill Road, Durham, NC 27707 Unit Amenities Marcus & Millichap, as the exclusive advisor to the seller, is pleased to present the opportunity to acquire the Viceroy Apartments, a 24-unit apartment property located in Durham, NC. Hardwood Flooring SUBJECT PROPERTY Matching Appliances The Viceroy Apartments consist of twenty-four (24) +/- 840 sqft two-bedroom, one- bathroom units spread across two three-story buildings built in 1971 and situated on +/- 0.75 acres in one of the country’s most prominent, high-tech research and development regions. Spacious Floorplans Amenities include 24-hour emergency maintenance, accent wall color preference, carpeting, hardwood flooring, ceiling fans, and dishwashers in select units. The property offers easy access to Duke University, the Duke Medical Center, the Veterans Administration Hospital, Dining Area and downtown Durham. Given the excellent submarket fundamentals and the quality of the asset, the Viceroy Apartments represent a strong long term investment opportunity. Carpeting LOCATION Pet Friendly Units The Viceroy Apartments can be accessed by I-85, I-40, NC147 and US 70 West, the main thoroughfares connecting Durham to the Triangle Region. This property’s prime location enjoys the benefits of an array of recreational activities, outdoor attractions, savory Recently Renovated restaurants and a prosperous growing community. Duke University, with approximately Units 16,000 enrolled students, is located 0.7 miles from the subject property. The Durham economy is majorly supported by Duke University and Health Systems with nearly 35,000 employees. Ceiling Fans Other employers in Durham include IBM, Durham Public Schools, GlaxoSmithKline, Blue Cross Blue Shield of NC, Durham City Government, Fidelity Investments, Research Triangle Institute, Veteran Affairs Medical Center and US Environmental Protection Agency. Accent Wall 10 Property Description Investment Highlights • Strong Rental Market: the Durham rental market has Offering Highlights experienced consistent rent increases. Rent increased Offering Price Units Price per Unit 3.4% in the past year. • A Rare Offering: 16 apartment comunities between $2.625M 24 $109,375 20-50 units traded in the past five years. 6 apartment comunities between 20-50 units traded in the past Year Built Lot Size Rentable SqFt year. This shows mid-size apartment communities in Durham are rarely for sale. 1971 0.75 20,160 • Pedestrian Friendly: 65 walk score, 62 bike score, Unit Amenities Unit Type and 46 transit score. • Superb Demographics: median household income for Durham is $56,393 and 48.8% of the population are college educated. Matching Dishwashers in Appliances Select Units • Strategic Location: Duke University and its affiliat- 24 ed medical system are among the primary demand Two-Bedroom drivers for the area. Combined 52,000 students, university staff, and medical system employees. Hardwood Ceiling Fans One-Bathroom Flooring Units • Close Proximity to Downtown Durham: 5 minute drive from downtown Durham’s top attractions In- cluding Durham’s Central Campus, American To- bacco Campus, Brightleaf Square, Durham Bulls Recently Pet Friendly Athletic Park, The Carolina Theatre, and Durham Renovated Units Units 100Property Description 13 Performing Arts Center. Accessibility Part of Durham’s appeal is its plethora of job op- portunities from Duke University and the largest BRIGHTLEAF science park in the country, Research Triangle Park. MOREHEAD HILL 62 46 65 Bike Score Some Transit Walk Score WEST END Flat as a pancake, A few nearby public Some errands can be LYON PARK minimal bike lanes. transportation options. accomplished on foot. Durham is home to a young, friendly, diverse, and educated population from the recent downtown urban redevelopment that led to an influx of new businesses and residents. Residents enjoy dining out in nationally recognized restaurants or grabbing a drink in one the region’s many microbreweries. Durham is also known for its beautiful green spaces, family-friendly museums, and a growing art scene enhanced by music Chapel Hill Rd festivals and gallery walks. Morehead Ave “Durham boasts a lot of big-city perks while maintaining a tight-knit, small-town vibe.“ OverallA Niche - Niche Review Grade for Property Description 15 Durham COMMUNITY AMENITIES INTERIOR AMENITIES Carpeting Off Street Parking Hardwood Flooring Pet Friendly Units Ceiling Fans Picnic Area Dishwashers in Select Units 24-Hour Maintenance Upgraded Cabinetry Lush Landscaping Matching Appliances Accent Walls 16 Property Description Property Description 17 Property Description 19 20 Property Description 22 Property Description Property Description 23 24 Property Description Property Description 25 City Of DURHAM “City of Medicine” “Durham evolved into a global center for information tech- nology, biotechnology, pharmaceuticals and medicine. Healthcare is a major industry including more than 300 medical and health related companies and medical practices with a combined payroll exceeing $1.5 billion annualy.” Duke University Hospital & Medical Center Market Duke Children’s Hospital & McGovern-Davison Health Center Duke Regional Hospital Overview Durham Veterans Administration (VA) Medical Center Lenox Baker Children’s Hospital North Carolina Specialty Hospital • Nearly 1 in 3 people in Durham have a health related career. • Over 6,000 nurses and 3,700 licensed physicians and interns. • Recognized as one of the top 10 US hospitals according to U.S. News and World Report. • One of Three U.S. hospitals to be recognized by the American Hospital Association for leadership and innovation in quality, safety and commitment to patient care. Demographic Snapshot Total Population: 316,739 Total Households: 120,936 Median Household Income: $56,393 Durham, Civilian Labor Force Population: 67.8% Housing Units: 138,954 Owner Occupied Housing Units: 53.5% NC Vacancy (Q4 2019): 6.58% Median Home Price: $232,600 Monthly Housing Payment: $1,293 Average Asking Rent: $1,157 Affordability Gap: 10.6% 28 Market Overview DUKE CLINICAL RESEARCH DURHAMATTRACTIONS INSTITUTE EVENTS & LEISURE DURHAM VA MEDICAL CENTER ► Carolina Theater ► Museum of Life & Science ► Carolina Ballet ► Sarah P. Duke Gardens DUKE ► Durham Performing Arts Center ► Brightleaf Square FOREST DUKE CHILDREN’S HOSPITAL ► American Tobaco ► Bull City Craft ► AMF Durham Lanes ► DefyGravity LENOX BAKER DUKE GLOBAL CHILDREN’S HEALTH INSTITUTE ► Duke University Chapel ► Durham Arts Council Clay Stu- DUKE PRATT DUKE UNIVERSITY HOSPITAL SCHOOL OF MEDICAL CENTER ► Golden Belt dio DUKE HEALTH & ENGINEERING ► Durham Central Park ► Durham Skate Park FITNESS CENTER DUKE PARKS & RECREATION AESTHETIC CENTER ► Eno River State Park ► Little River Regional Park & Nat- ► West Point on the Eno ural Area ► American Village Park ► Farmers’ Market DUKE CENTER DUKE UNIVERSITY FOR LIVING WALLACE CHAPEL SPORTS CLINIC JACK COOMBS FIELD ► Durham Bulls ► Duke Blue Devils Football NASHER MUSEUM OF ART ► Carolina Mudcats ► Duke Blue