For Sale | Broad St Arts District Mixed Use

ONE SOUTH COMMERCIAL

DRAFT 607 E BROADWAY

FOR SALE | BROAD ST ARTS DISTRICT MIXED USE

24 E BROAD ST RICHMOND, VA 23219

$615,000 PID: N0000076035 0.07 AC Parcel 8,134 SF Building Area 2,362 SF Basement Area 3 Stories B-4 Central Business Zoning 1915 Construction State & Fed Historic Tax Credit Eligible

PETERSBURG[1] MULTIFAMILY PORTFOLIO TABLE OF CONTENTS

3 PROPERTY SUMMARY B-4 CENTRAL BUSINESS 4 GROUND LEVEL ZONING 5 SECOND LEVEL 6 THIRD LEVEL 7 EXTERIOR AND BASEMENT 8 RICHMOND METRO OVERVIEW 0.07 AC 10 RICHMOND ECONOMIC DEVELOPMENT PARCEL AREA 11 MAJOR EMPLOYERS 12 DEMOGRAPHICS 13 MULTIFAMILY MARKET ANALYSIS 14 RETAIL MARKET ANALYSIS 8,134 SF BUILDING AREA 15 LOCATION MAP 16 ONE SOUTH COMMERCIAL CONTACT

2,632 SF BASEMENT

Communication: One South Commercial is the exclusive representative of Seller in its disposition of 24 E Broad St. All communications regarding the property should be directed HISTORIC to the One South Commercial listing team. TAX CREDIT ELIGIBLE Property Tours: Prospective purchasers should contact the listing team regarding property tours. Please provide at least 72 hours advance notice when requesting a tour date out of consideration for current residents.

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 in the evaluation of the property and its suitability for investment. Neither One South Commercial nor Seller make any representations or warranties with 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.

24 E BROAD ST | RICHMOND VA 23219 Richmond Arts District Development Opportunity

One South Commercial is please to present 24 E Broad St in Downtown Richmond’s popular Arts District. This building is located in the Broad Street City Old and Historic District and was constructed in 1915. A retail store currently occupies the first level of the building while the second and third levels are vacant and ready for redevelopment with the potential to add 8 residential units to the existing commercial space.

Broad Street has been and continues to be Richmond’s most significant corridor. Historically, it has been a center for retail and commerce as well as the City’s busiest thoroughfare. In recent years, especially in the Downtown area, Broad Street has seen a revival as entertainment and creative uses have filled its street level spaces. The area now features an exciting mix of restaurants, art galleries, retail shops, and performing arts venues. Along with this commercial growth, the transformation has also brought a tremendous population increase with the area gaining almost 22% in residents since 2010. To meet the demand, many former commercial spaces on upper levels of buildings have successfully been converted to stylish multifamily residential apartments catering especially to students, young professionals, and others.

24 E Broad St’s prominent location at the corner of N 1st St places it in the heart of the Downtown Arts District and between VCU’s academic and medical campuses. Its location in the middle of Richmond’s thriving Arts District makes the property ideally suited for redevelopment in the same way that many successful projects have already been completed in this part of Downtown. Also fully eligible for State and Federal Historic Rehabilitation Tax Credits, 24 E Broad St offers extraordinary potential for an investor looking to develop a mixed-use property in this high-demand market.

[3] 24 E BROAD ST | RICHMOND VA 23219 GROUNDPETERSBURG LEVEL DEMOGRAPHICS* COMMERCIAL

[4] 24 E BROAD ST | RICHMOND VA 23219 SECONDPETERSBURG LEVEL DEMOGRAPHICS*

[5] 24 E BROAD ST | RICHMOND VA 23219 THIRDPETERSBURG LEVEL DEMOGRAPHICS*

[6] 24 E BROAD ST | RICHMOND VA 23219 EXTERIORPETERSBURG AND DEMOGRAPHICS* BASEMENT LEVEL

[7] 24 E BROAD ST | RICHMOND VA 23219 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 “52 Places to Go in 2020” in the world

Kehinde Wiley’s “Rumors of War” Statue

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”.

[8] 24 E BROAD ST | RICHMOND VA 23219 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

[9] 24 E BROAD ST | RICHMOND VA 23219 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%

[10] 24 E BROAD ST | RICHMOND VA 23219 RICHMONDPETERSBURG METRO DEMOGRAPHICS* MAJOR EMPLOYERS

1 4 7 30 MIN DRIVE

RICHMOND 6 5 2 20 MIN DRIVE 15913 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

[11] 24 E BROAD ST | RICHMOND VA 23219 DEMOGRAPHICSPETERSBURG DEMOGRAPHICS* AND MARKET DATA

DEMOGRAPHICS (WITHIN 1 MILE) DISTANCE FROM PROPERTIES 1 MILE 3 MILE 5 MILE

Population: 25,680 2025 Projection 27,357 150,684 275,666 POPULATION 2020 Estimate 25,680 142,428 263,231

2010 Census 21,062 121,334 233,638

Growth 2020-2025 6.53% 5.80% 4.72%

Growth 2010-2020 21.93% 17.39% 12.67%

Households:

$69,360 2025 Projection 11,375 65,184 118,118 AVG HOUSEHOLD INCOME 2020 Estimate 10,582 61,606 112,877

2010 Census 8,025 52,185 100,374

Growth 2020 - 2025 7.49% 5.81% 4.64%

Growth 2010 - 2020 31.86% 18.05% 12.46%

Owner Occupied 1,808 22,388 48,877

21.9% Renter Occupied 8,773 39,217 64,000 POPULATION GROWTH PAST 10 YEARS 2020 Avg Household Income $60,015 $68,166 $69,360

2020 Med Household Income $32,863 $47,023 $47,301

2020 Households by Inc:

<$25,000 3,996 17,385 30,061

RICHMOND DOWNTOWN MULTIFAMILY SUBMARKET DATA $25,000 - $50,000 2,522 15,167 29,414

Market Sale Price/Unit $170K $50,000 - $75,000 1,543 9,748 17,995 12 Mo Asking Sale Price/Unit $164 K $75,000 - $100,000 919 6,869 12,438

Months to Sale Past Year 5.6 $100,000 - $125,000 470 4,538 8,164

12 Month Sales Volume $77.2 M $125,000 - $150,000 136 2,420 4,547 12 Month Transactions 23 $150,000 - $200,000 380 2,320 4,246 For Sale Listings 5 $200,000+ 616 3,158 6,014 For Sale Units 77 Market Cap Rate 6.3 %

[12] 24 E BROAD ST | RICHMOND VA 23219 DOWNTOWNPETERSBURG MULTIFAMILYDEMOGRAPHICS* MARKET ANALYSIS

Downtown Richmond has undergone a multifamily expansion in the The coronavirus pandemic could alter Downtown’s positive trajectory, past ten years unlike any that it has experienced before. Over 4,500 though. Between rising unemployment claims, phased re-openings, units, or roughly 40% of the submarket’s inventory, have come on social distancing, and remote learning taking place across all levels of line over that time frame. While that is a staggering amount of units, education, the submarket could be in for a slowdown in leasing activity demand has been evident, and collective occupancy for those units during the typically active summer season. neared 90% as of 20Q2. VCU’s fall schedule could have the biggest impact on Downtown’s The Downtown area and its associated neighborhoods are some multifamily market in the near term. Given that a significant portion of the prime millennial nodes in the metro. Driven by VCU and its of multifamily demand Downtown stems from college students, the undergraduate enrollment of more than 24,000, neighborhoods in recently announced truncated fall semester could result in a drop in the submarket benefit from the relatively inelastic demand of students demand in the coming months. Couple that with the impending arrival looking to live off-campus. Further, approximately 40% of VCU’s of more supply by year’s end, and pushing rents could become much graduates opt to remain in the metro after graduation, with many harder for property managers than it has been in recent years. staying in the immediate area.

[13] 24 E BROAD ST | RICHMOND VA 23219 DOWNTOWNPETERSBURG RETAILDEMOGRAPHICS* MARKET ANALYSIS

While it is likely still too early to quantify, the impact of the coronavirus From a supply standpoint, the amount of space underway has on the retail sector is expected to be significant. Between mandatory continued to remain manageable by the metro’s standards. Speculative closings of non-essential businesses, social distancing, and the development is still rare but has started to gain momentum in recent gradual re-opening of the local economy, the end result will likely see months as developers have looked to take advantage of Richmond’s businesses close as foot traffic dwindles. In turn, the longer that this tight vacancy rate. That trend is likely to be less prevalent in the coming pandemic lasts, the longer it will take for retailers to dig out of the hole. quarters, though, as developers take a wait-and-see approach during the ongoing pandemic. Prior to the onset of this pandemic, Richmond’s retail sector was in great standing. Spurred by a slowdown in new supply, coupled with Investors have also flocked to Richmond recently, sending sales continually positive demand outputs, vacancies reached ten-year lows volume last year to its highest total since 2013. Anchoring that uptick in early 2020. was a portfolio of shopping centers that traded in early 2019, which accounted for more than 25% of all volume on the year. Heightened Demand for retail space has been most prominent in two areas: the levels of activity are expected to be a thing of the past, though. With the metro’s retail strongholds, such as Short Pump, and in emerging spread of the coronavirus, uncertainty surrounding the retail sector has growth areas, such as in Chesterfield County. All told, leasing activity risen, and investors are less likely to acquire assets in a time where little exceeded the metro’s ten-year-trailing average again last year, which is known surrounding future occupancies. ultimately paved the way for another year of vacancy compression.

[14] 24 E BROAD ST | RICHMOND VA 23219 LOCATIONPETERSBURG MAP DEMOGRAPHICS*

NORTHSIDE SCOTT’S ADDITION

MUSEUM DISTRICT

ARTHUR ASHE BLVD W BROAD ST

CARYTOWN FAN DISTRICT

N BELVIDERE ST MAIN STREET JACKSON WARD CARY STREET VCU MONROE CAMPUS 24 E BROAD ST

E BROAD ST

BYRD PARK VCU MED CENTER

DOWNTOWN RICHMOND UNION HILL MAYMONT HOLLYWOOD CEMETERY

SHOCKOE BOTTOM CHURCH HILL

JAMES RIVER

MANCHESTER

[15] 24 E BROAD ST | RICHMOND VA 23219 ONE SOUTH COMMERCIAL CONTACT

One South Commercial is a CoStar PowerBroker in the Richmond, VA investment sales market. 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.

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