The Greens at Hollymead Apartments

Multi-Family Property
Experienced Sponsor
River Asset Management
Charlottesville, VA

Offered By

River Asset Management

Charlottesville, VA

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Assets Under
Management

Currently
$71MM less than 10 assets
Exited
$106MM less than 10 assets
Portfolio LTV
65%  
Historical
Realized Returns

Total IRR
13.1%  
Equity Multiple
2.15x  
Annual Cash
10.5%  
Years Of
Experience

As Principals
30+ years  
In Business
30 years  
Size
6 Staff * Dedicated investor relations
* All information is reported by River Asset Management as of 12/19/2017.
Assets Under
Management

Currently
$71MM less than 10 assets
Exited
$106MM less than 10 assets
Portfolio LTV
65%  
Historical
Returns

Total IRR
13.1%  
Equity Multiple
2.15x  
Annual Cash
10.5%  
Years Of
Experience

As Principals
30+ years  
In Business
30 years  
Size
6 Staff * Dedicated investor relations
* All information is reported by River Asset Management as of 12/19/2017.

About this Property

The Greens at Hollymead Apartments is a 144 unit garden-style apartment property located in Charlottesville, Virginia. Residents are attracted to the property because of its many amenities including: swimming pool with furnished lounge area, fitness center, lighted tennis courts, grilling stations, picnic areas, and wi-fi connectivity. Rents at the property are below market and unit renovations offer the opportunity for increasing rents. Upgraded units at the Greens at Hollymead are commanding premiums that range from $100 to $165 monthly. With the total cost of unit upgrades totaling from $5,000 to $10,000 per unit, the annual investment returns on upgraded costs are averaging 20%. The Greens is located in the desirable Forest Lakes/Hollymead neighborhood. This neighborhood is located in the high-growth Route 29 corridor. Population within one mile of the property grew by 9.8% between 2010 and 2014. The neighborhood also is undergoing a retail shopping expansion totaling more than 1.2 million square feet.

Charlottesville is the economic, cultural and educational center of the multi-county trade area of central Virginia. The city is home to a diversified economy with the University of Virginia, health care/social assistance, accommodation/food service, and retail trade representing the largest industries by employment. Approximately 130 tech firms have locations in the Charlottesville area, ranging from well-known national brands to start-ups. Venture capital investment in the region is also growing. In 2015, Charlottesville received $27.7 million in funding, ranking first among 133 metro areas for greatest growth and greatest rate of growth, according to analysis by the National Venture Capital Association. As the largest employer in Charlottesville, the University of Virginia is ranked as the third best public national university by U.S. News and World Report. Charlottesville’s economy is supported by a well-educated workforce. More than 41.0% of Charlottesville residents age 25 or older have a bachelor’s degree or higher. The city’s unemployment rate reflects the area’s economic strength, at 2.9% in May 2016 versus 4.5% for the United States overall. The Milken Institute’s “Best Performing Cities of 2009” index ranked Charlottesville 26th of the 124 smallest metropolitan areas in the nation. In addition, Entrepreneur magazine ranked Charlottesville as the fourth best city in the United States for entrepreneurs.

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Key Points

  • Acquisition Summary: The sponsor acquired the property on February 1, 2017 for $19,750,000 from an unaffiliated third party seller. The acquisition was funded with a loan with the amount of $15,000,000 and bridge equity. The bridge equity will be repaid with proceeds from this offering. Investors will be admitted as members of the Company and will immediately be entitled to their share of distributable cash from operations.
  • Charlottesville, Virginia: The Greens at Hollymead is located in Charlottesville, Virginia. Charlottesville is home to the University of Virginia. With a total enrollment of approximately 22,000, the University is consistently ranked as one of the top universities in the country. In addition, research generated by the University is a magnate for businesses in the fields of technology, medicine and the sciences.
  • Excellent Location: The city of Charlottesville is located in picturesque central Virginia within 25 miles of the Blue Ridge Mountains. With convenient access to the north/south transportation corridors of Interstate 81 and Interstate 95 as well as the east/west corridor of Interstate 64, Charlottesville is within easy reach of the entire Mid-Atlantic region. In addition, Charlottesville is about 120 miles from Washington, D.C. and about 70 miles from Richmond, the state capital of Virginia.
  • Property Upgrades: Built in 1990, the Greens at Hollymead presents to investors a classic value-add opportunity. Of 144 units, the previous owners upgraded 43 units to a style that is competitive with the newer apartment product in the Charlottesville market. The investment strategy of Rivermead, LLC is to bring 20 units from their original condition to the style implemented by the former owner and to rent those apartments at a premium with the goal of generating a 20% return on cost. To the extent that those premiums are achievable, the Manager will continue the upgrade strategy and thus enhance the value of the entire asset and the returns to its investors during their period of ownership.
  • Large Sponsor Investment: The Manager of Rivermead, LLC has invested approximately $1,800,000 (28% ownership) of its own capital in the property.

Financials

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Offering Financial

Location Details

Charlottesville, VA

The Greens at Hollymead Apartments is located in the Hollymead/Forest Lakes neighborhood of Charlottesville, Virginia. Notable proximate demand drivers include the Charlottesville Albemarle Airport (2.8 miles), Hollymead Town Center (1.8 miles), and the University of Virginia (7.0 miles). Additionally, the property is located within one mile of U.S. 29 North, which provides access to all the major employment centers throughout the Charlottesville metro area. The Property may be accessed from U.S. 29 North via signalized intersections with both Hollymead Drive and Timberwood Parkway.

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Documents

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Offering Agreement Documents

Frequently Asked Questions

Below are some of the most frequently asked questions about this offering.

The funding deadline for this opportunity is February 28, 2018.

The first projected distribution was scheduled for October 2017.

Distributions are scheduled to go out on a quarterly basis.

Yes, non-US residents are welcome to apply.

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