221 Peppertree Ln, Winchester, VA, 22601-3578, US

Peppertree

Attributes

Year built

1987

Units

194

Asset description

Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to present the opportunity to acquire Peppertree Apartments (“the Property”), a 1987 vintage, 194-unit property located in Winchester, Virginia. Peppertree Apartments presents a comprehensive renovation strategy to capture immense achievable value-add upside through in-unit, common area, and amenity renovations. The investment opportunity is highlighted by the Property’s continued strong performance and a unit mix comprised of 75% two-bedroom and three-bedroom units. Due to a lack of competitive housing supply, Winchester fundamentals regularly outperform, and strong third-party research projects ~4% annual rent growth through 2028, highlighting the inherent growth at Peppertree Apartments. The Property also boasts area-leading Winchester demographics including $108K average household incomes and estimated 19% growth in home values over the next 5-years.

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Investment highlights

PREMIER VALUE-ADD OPPORTUNITY IN A COMPELLING VIRGINIA SUBMARKET

Ability to renovate 100% of the unit mix and achieve outsized returns

COMPELLING IN-PLACE CASH FLOW AND STRONG PROPERTY-LEVEL PERFORMANCE

Continued desirable property-level fundamentals and historical vacancy below 5%

ATTRACTIVE IN-PLACE FINANCING LIMITS INTEREST RATE VOLATILITY CONCERNS

$30MM loan, 5.53% fixed interest rate, interest only through 2029

EXCEPTIONAL WINCHESTER GROWTH STORY

3.95% average annual rent growth projected through 2028 with minimal current and future supply projected

DIRECT PROXIMITY TO PROMINENT EMPLOYMENT BASE & DEMAND DRIVERS

Adjacent to I-81, Shenandoah University, the Winchester Medical Center and historic Downtown Winchester

STRONG EMPLOYMENT AND RETAIL-CENTRIC LOCATION

4.2MM SF of retail and 1.1MM SF of office within a 2-mile radius of the property

EXCEPTIONAL RENTER DEMOGRAPHICS

$456,822 Average Home Value, 19% estimated 5-year home value growth, $107,968 Average Household Income, 16% estimated 5-year HHI growth, and 3.5% unemployment rate