Triple Net Lease Carytown Building

ONE SOUTH COMMERCIAL

FOR SALE | TRIPLE NET LEASE CARYTOWN BUILDING

2905-07 West Cary St Richmond VA 23221

CALL FOR PRICING PID: W0001281012 0.23 AC (9,844 SF) Parcel Area 4,742 Building Area Outdoor Dining Area Parking Area (Approx 15 Spaces) Carytown Location 1031 Exchange Opportunity $102K NOI

PETERSBURG[1] MULTIFAMILY PORTFOLIO TABLE OF CONTENTS

3 PROPERTY SUMMARY TRIPLE NET LEASE 4 PHOTOS STABLE TENANT

9 CARYTOWN AREA

10 RICHMOND METRO AREA

12 RICHMOND ECONOMIC DEVELOPMENT $102K 13 RICHMOND MAJOR EMPLOYERS NOI 14 DEMOGRAPHICS & NEAR WEST END MARKET

15 LOCATION MAP

16 ONE SOUTH COMMERCIAL TEAM 1031 EXCHANGE OPPORTUNITY

UB-PO2 URBAN BUSINESS ZONING

4,742 SF GBA

Communication: One South Commercial is the exclusive representative of Seller in its disposition of 2905-07 W Cary 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. 320 SF Please provide at least 72 hours advance notice when requesting a tour date out OUTDOOR of consideration for current residents. DINING 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 15 in the evaluation of the property and its suitability for investment. Neither One OFF-STREET PARKING South Commercial nor Seller make any representations or warranties with SPACES (APPROX.) 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.

2905-07 W CARY ST | RICHMOND VA 1031 Exchange Opportunity in Richmond’s Carytown

One South Commercial is pleased to present for sale this triple net lease commercial building in the most prominent section of Richmond’s popular Carytown. Directly across the street from the historic landmark Byrd Theatre, this two-story commercial building was constructed in 1950. It’s now home to the Citizen Burger Bar. This popular restaurant has been opened since Spring 2016 under a multi-year net lease for the entire building. This listing is also a great 1031 exchange opportunity.

The lease includes the restaurant on the first level with a large outdoor dining area adjacent to the sidewalk along W Cary Street. Two 2bed/1bath apartments are located on the second level and are also leased by the restaurant and utilized as storage space. This lease resulted in a NOI of $102,000 in 2019.

Parking is limited in Carytown, and the viability of many businesses depend on the uncertainty of available on-street parking. This property is unique in offering an off-street parking area with approximately 15 spaces. The parking area is easily accessible directly off W Cary Street or from the alley running from Parkwood Avenue to the south.

Carytown is an urban retail district that is home to many local Richmond merchants, shops, and restaurants. This area spans nine blocks of West Cary St from Thompson Street to Arthur Ashe Blvd. Carytown’s proximity to some of Richmond’s premier residential neighborhoods and its accessibility from the Downtown Expressway have helped create a successful business district that is able to support a variety of businesses, many locally owned and operated, including restaurants, retail, offices, beauty salons, grocery stores, and many others. Over 230 shops, restaurants, and attractions are located in Carytown, including the historic Byrd Theatre which first opened in 1928.

Each year, thousands of locals and visitors flock to Carytown for the unique shopping and entertainment experiences that it provides. If you have walked through Carytown, then you know this listing as one of the most recognizable properties in the area. With its prime location across from the Byrd Theatre, 2905-07 W Cary Street is one of the most distinctive commercial buildings in Richmond’s most dynamic business district.

Richmond’s Carytown

West of Downtown, Carytown is one of the most popular and unique Victorian homes, the Fan and Museum Districts are among Richmond’s commercial areas in the City of Richmond. Carytown’s location near premier neighborhoods. The historic homes in these neighborhoods the primarily residential Fan and Museum Districts and its accessibility represent some of the best preserved Victorian residential architecture from the Downtown Expressway have helped create a district that in the country. Visitors can see grand examples of Italianate, Queen supports a variety of businesses, many locally owned and operated, Anne, Colonial Revival, and other architectural styles as they stroll on including restaurants, retail, offices, beauty salons, grocery stores, and the wide sidewalks in these pedestrian-friendly neighborhoods. many others. Over 230 shops, restaurants, and attractions are located in Carytown, including the historic Byrd Theatre which first opened in The Fan District is also home to Virginia Commonwealth University’s 1928. academic campus, popular restaurants, several parks, and the iconic tree-lined Monument Avenue. These storefronts and recent road and sidewalk improvements have created a district that accommodates automobile traffic while being The Museum District is Richmond’s arts and culture focal point. The pedestrian-friendly. The success of this arrangement can be seen Virginia Museum of Fine Arts (VMFA), the Virginia Museum of History throughout the year, but especially during pleasant weather, when and Culture, the Science Museum of Virginia, and the Children’s large crowds of both locals and tourists stroll up and down West Cary Museum are all conveniently located within walking distance of each Street to visit the shops, businesses, and restaurants in Carytown. other. In addition to these cultural centers, the Museum District also is home to many other attractions including popular local restaurants, The popular commercial district also benefits from being adjacent to shops, schools, and other services. extraordinary neighborhoods. Famed for its 19th and early 20th Century

Queen Anne Style Residences in Fan District The VMFA in Museum District

[9] 2905-07 W CARY ST | RICHMOND VA 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.

The New York Times lists Richmond as one of RICHMOND VA “52 Places to Go in 2020” in the world #39 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

PROPERTY VALUE

The James River and Downtown Fan District

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, theNew York Times lists Richmond as one of “52 Places to Go in 2020”.

[10] 2905-07 W CARY ST | RICHMOND VA RICHMOND MSA

POPULATION MEDIAN PROPERTY VALUE MEDIAN HOUSEHOLD INCOME 1.31M $246,100 $67,703

MEDIAN AGE NUMBER OF EMPLOYEES MED HH INCOME GROWTH (1 YR) 38.8 696,500 0.10%

MEDIAN HH INCOME $42,356 2017 VALUE 2.84% 1 YEAR GROWTH

PROPERTY VALUE $209,200 2017 MEDIAN $199,300 2016 MEDIAN

[11] 2905-07 W CARY ST | RICHMOND VA 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 FORTUNE 500 Seven Fortune 500 companies call Metro Richmond home including the COMPANIES Altria Group, Carmax, Owens and Minor, and Genworth Financial. These HEADQUARTERS IN 7 RICHMOND 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. YEARS CONSECUTIVE JOB GROWTH To complement these high tech companies, traditional manufacturing, 10 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 UNEMPLOY employment increased 2% over the year to 696,500. This increase is MENT significantly higher than the national growth of 1.4% over the same period. 2.9% DEC 2019 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%

[12] 2905-07 W CARY ST | RICHMOND VA RICHMONDPETERSBURG METRO DEMOGRAPHICS* MAJOR EMPLOYERS

1 4 7 30 MIN DRIVE

6 5 2 20 MIN DRIVE 15913 DOWNTOWN RICHMOND 11 3

DRIVE TIME TO MAJOR AREA EMPLOYERS LARGEST RICHMOND EMPLOYERS

EMPLOYER MILES TIME EMPLOYER EMPLOYESS 1. Capital One 24.5 30 Min 1. Capital One 13,000 2. VCU Health 4.6 13 Min 2. VCU Health 9,313 3. HCA Health System 14.5 20 Min 3. HCA Health System 7,628 4. Bon Secours 3.8 9 Min 4. Bon Secours 7,136 5. Dominion VA Power 4.1 10 Min 5. Dominion VA Power 5,433 6. SunTrust Banks Inc. 13.1 19 Min 6. SunTrust Banks Inc. 3,810 7. Altria Group 4.0 10 Min 7. Altria Group 3,800 8. Amazon.com 11.8 18 Min 8. Amazon.com 3,800 9. Wells Fargo 3.5 9 Min 9. Wells Fargo 2,902 10. Anthem 4.0 10 Min 10. Anthem 2,655 11. UPS 20.4 25 Min 11. UPS 2,490 12. DuPont 4.0 10 Min 12. DuPont 2,376 13. Bank of America 11.1 20 Min 13. Bank of America 1,921 14. Markel Corp 3.7 10 Min 14. Markel Corp 1,886 15. Federal Reserve Richmond 15.0 20 Min 15. Federal Reserve Richmond 1,882

[13] 2905-07 W CARY ST | RICHMOND VA DEMOGRAPHICSPETERSBURG DEMOGRAPHICS* & RETAIL SUBMARKET DATA

DEMOGRAPHICS (WITHIN 5 MILES) DISTANCE FROM PROPERTY 1 MILE 3 MILE 5 MILE

275,420 Population: POPULATION 2025 Projection 22,862 117,829 288,383

2020 Estimate 22,153 112,028 275,420

2010 Census 22,431 100,294 245,994

Growth 2020-2025 3.20% 5.18% 4.71% $73,977 AVG HOUSEHOLD Growth 2010-2020 (1.24%) 11.70% 11.96% INCOME Households:

2025 Projection 11,842 54,587 123,662

2020 Estimate 11,527 51,954 118,208

12.0% 2010 Census 11,919 46,539 105,687 POPULATION GROWTH PAST 10 YEARS Growth 2020 - 2025 2.73% 5.07% 4.61%

Growth 2010 - 2020 (3.29%) 11.64% 11.85%

Owner Occupied 4,357 21,463 51,709

Renter Occupied 7,170 30,490 66,499 NEAR WEST END RETAIL SUBMARKET 2020 Avg Household Income $98,247 $84,285 $73,977

Market Rent $19.65 2020 Med Household Income $70,586 $58,101 $49,853 Vacancy Rate 2.3% 2020 Households by Inc:

Availability Rate 5.2% <$25,000 1,458 11,245 29,397

Available SF 203K $25,000 - $50,000 2,568 12,000 29,881 Months on Market 7.2 $50,000 - $75,000 2,069 8,056 18,887 6 Month Leasing Probability 41.2% $75,000 - $100,000 1,457 6,495 13,045 Existing Buildings 668 $100,000 - $125,000 1,028 4,175 9,339 Average Building SF 5.7K $125,000 - $150,000 928 2,694 5,118 12 Month Transactions 21 Sale Price/SF $152 $150,000 - $200,000 814 2,745 5,147 Average Sale Price $898K $200,000+ 1,203 4,542 7,394 12 Month Sales Volume $13.2M Market Cap Rate 7.8%

[14] 2905-07 W CARY ST | RICHMOND VA LOCATION MAP

CHAMBERLAYNE AVE

NORTH SIDE

WEST END SCOTT’S ADDITION

MECHANICSVILLE TPK W BROAD ST MUSEUM DISTRICT

CARYTOWN 2905-07 W CARY ST

FAN DISTRICT

RICHMOND

WESTOVER HILLS CHURCH HILL

JAMES RIVER MANCHESTER FOREST HILL

HULL ST

MIDLOTHIAN TPK

SOUTH RICHMOND

[15] 2905-07 W CARY ST | RICHMOND VA ONE SOUTH COMMERCIAL TEAM

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.

LORY MARKHAM | 804.248.2561 | [email protected]

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.

TOM ROSMAN | 804.539.3017 | [email protected]

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.

[16] PETERSBURGAZALEA PLACE MULTIFAMILY APARTMENTS PORTFOLIO ONE[16] SOUTH COMMERCIAL 2314 West Main Street | Richmond VA 23220 | onesouthcommercial.com | 804.353.0009