ALEXANDRIA, VIRGINIA
CONFIDENTIAL EXECUTIVE SUMMARY EXECUTIVE SUMMARY
HFF is pleased to present EOS Twenty-One (the “Property”), a 1,180-unit multifamily community located in Alexandria, Virginia. Conveniently located inside the Capital Beltway (I-495) and just off of I-395, EOS Twenty-One is one mile north of the Van Dorn Metro Station and offers free shuttles daily to the station. The asset is directly across I-395 from the Department of Defense’s (“DOD”) recently built Washington Headquarters Service (“WHS”) Mark Center that centralized 8,000 jobs in 2013, eight miles south of the 14th Street Bridge (Downtown D.C.), and four miles west of historic Old Town Alexandria. The Property is an easy commute to many of the region’s thriving employment centers as well as countless dining, entertainment, and recreation attractions in Old Town/Alexandria, Shirlington, the Rosslyn-Ballston Corridor, Crystal City, Pentagon City, and Washington, D.C. Furthermore, EOS Twenty-One is poised for future growth due to the neighborhood’s planned renaissance with Howard Hughes Corporation’s ambitious redevelopment plans for the Landmark Mall, value add potential at the asset, and core location proximate to strong demand drivers in Washington, D.C. and Northern Virginia.
EOS Twenty-One presents an extraordinary investment opportunity with reliable in place cash flow and strong historical occupancy (greater than 95% over the past three years); and presents an immediate value-add potential through continued interior unit upgrades that has demonstrated proven rent premiums. The current renovation package is achieving an impressive average return on investment of 16.2%. The common areas have been upgraded and revamped since 2004, including the clubhouse, fitness center, new hallway carpeting and lighting, landscaping, windows, patio doors, elevators, and more. Additionally, the high demand for workforce housing combined with a shrinking inventory, especially at amenity- rich locations inside the Beltway, makes EOS Twenty-One a highly sought after community at an advantageous price-point relative to replacement cost. With a critical mass of 1,180 apartment units, EOS Twenty-One also offers the potential for many operational efficiencies due to its scale.
2 THE PROPERTY
EOS Twenty-One originally included 1,524 units in twenty residential Today, EOS Twenty-One consists of: buildings plus the clubhouse that were constructed in two phases (1968 • Total of 14 nearly identical residential buildings with 1,180 units and 1972). In 2004, an extensive renovation strategy was commenced to reposition the property, including substantial building and unit • 3 five-floor buildings (100 units each) upgrades as well as the condominium conversion of 344 residential • 11 four-floor buildings (80 units each) units in six buildings at the rear of the community, all of which were sold. • 1,496 surface parking spaces
• An abundance of amenity spaces including:
UNIT MIX • Large clubhouse with coffee center, game room, billiards, Type Units SF Classic Premier Elite business center, and free WiFi Studio 236 496 118 75 43 • Two resort-style pools • 24-hour fitness center offering a variety of classes 1BR 486 708 200 205 81 • On-site day care center 1BR (corner) 118 843 42 61 15 • Convenience store/deli 2 BR 222 1,048 62 105 55 • Four tennis courts 2 BR (corner) 118 1,182 48 66 4 • Expansive dog park (“Wiggly Field”) • Barbecue and picnic area Total 1,180 790 470 512 198 • Theater Room • Children’s Playground
SITE PLAN
3 INVESTMENT HIGHLIGHTS
WASHINGTON, D.C. INFILL LOCATION
EOS Twenty-One’s prime location within close-in Alexandria provides quick Metro access via the community shuttle (Van Dorn Metro Station), excellent proximity to major transportation routes (I-395, the Capital Beltway, I-95, George Washington Parkway), and top employment and lifestyle amenity centers. Alexandria, Crystal City, Pentagon City, Shirlington, the Rosslyn-Ballston Corridor, Falls Church, Fairfax, Springfield, Tysons Corner, and Washington, D.C., with a combined total office space of over 260 million SF and over 70 million SF of retail are all within a 20-minute drive of the Property.
The Washington, DC metro area has shown consistent growth and stability, having added 38,000 new jobs in the 12 month period ending April, 2017. Recent employment growth in the DC metro region has been led by expansion in the private sector with the backdrop of the federal government as a permanent economic driver. Additionally, northern Virginia has enjoyed a major presence in employment growth while Alexandria unemployment is at an impressive 3.4%.
CLASS B EFFECTIVE RENT GROWTH STABILITY & UPSIDE