452-UNIT NORTH RALEIGH
M U L T I F A M I LY O P P O R T U N I T Y
proven renovation rent growth in high barrier
to entry submarket
INVESTMENT SUMMARY
ADDRESS
7303 Hihenge Court
Raleigh, NC 27615
WAKE COUNT Y PINS
0797589223, 0797599310, and
0797673314
Y E A R B U I LT
1984-1986, 1993
ACREAGE
46.60
NO. OF UNITS
452
DENSIT Y (UNITS/ACRE)
9.70
AVG . U N IT S IZE (S F )
1,054
TOTA L S Q U A R E F E E T
476,408
R E N O VAT I O N S P E N D
(since 2013)
$2.5 million
C U R R E N T O P E R AT I O N S
EXECUTIVE SUMMARY
TH E I N V ESTM ENT O PP O RTU N IT Y
452-unit North Raleigh multifamily opportunity:
Proven renovation rent growth in high barrier to entry submarket
(as of 9/13/2016)
CURRENT OCCUPANCY %
93.8%
CURRENT LEASED %
94.7%
IN-PLACE EFFECTIVE RENT
$1,005
EFFECTIVE RENT PSF
$0.95
RESERVE/PHASE IV
IN-PLACE EFFECTIVE
$1,187
RESERVE/PHASE IV
EFFECTIVE RENT PSF
$1.00 (on larger 1,194 SF avg units)
Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp., a North Carolina licensed real estate broker (“HFF”), has been
retained as the exclusive sales representative for the Apartments of Stonehenge. The Apartments of Stonehenge (“Stonehenge” or the
“Property”) is a 452-unit garden apartment community in the heart of affluent North Raleigh ($100,000+ average household income in
a one-mile radius) that is ripe for a high-impact value-add program that is bolstered by in-place $100 to $250 premiums at the updated
Reserve phase of the Property.
Located in the sought-after executive housing enclave of North Raleigh, Stonehenge benefits from an advantageous central location
in the high-growth Raleigh-Durham MSA and is less than 20 minutes to Research Triangle Park (55,000+ employees) and Downtown
Raleigh (45,000+ jobs), as well as the major employment and lifestyle nodes North Hills and Crabtree Valley. Stonehenge is wellpositioned off Creedmoor Road/NC Highway 50, a major north-south regional connector, and offers unique walkability to the high-quality
Stonehenge Market, which includes grocery store Harris Teeter, Starbucks, and Rite Aid. After a recent $2.5 million capital investment
program, the Property continues to push annual rents by 6% to 8% in recent years due to appealing single-family quality features and a
largely built-out, high barrier to entry area with a significant dearth of new product.
THE APARTMENTS OF STONEHENGE | 2
STELLAR OPERATIONAL HISTORY
Stonehenge has a well-established history of impressive
occupancy, currently at 93.8%, and enviable rent growth
(regularly 6% to 8% annually) as one of North Raleigh’s
most recognizable apartment communities. The Property
continues to find the top of the market for classic and
renovated units alike, with 3.6% T-12 collections growth and
a number of additional value levers to pull from renovations,
existing premiums, and potential other income programs.
EXCEPTIONAL UPSIDE POTENTIAL WITH HIGH-IMPACT
VALUE-ADD
Stonehenge is ideally positioned for a substantial valueadd program, with more than $2.5 million invested since
2013 to upgrade amenity and clubhouse spaces, replace
roofs and building systems, and refresh exterior paint
and parking lots. Accordingly, new ownership can focus
on a rapid rollout of targeted interior renovations that are
expected to command $100-$250 premiums.
PROVEN PREMIUMS IN THE UPGRADED RESERVE PHASE
Built in 1993, the 96-unit Reserve phase of the Property
already commands a $145+ average premium with
moderate finish upgrades – stainless steel appliances,
granite and faux granite counters, vinyl wood plank
flooring, and upgraded lighting and fixtures – and supports
immediately achievable 20% to 26% ROC.
THE APARTMENTS OF STONEHENGE | 3
EXCEPTIONAL CONNECTIVITY TO
MAJOR EMPLOYMENT NODES
Surrounded by North Raleigh’s enviable executive
housing base, the Property is proximate to many of
the region’s key employment areas, including R&Dfocused Research Triangle Park (50,000+ jobs), growing
tech hub Downtown Raleigh (45,000+ employees),
Duke Raleigh Hospital, UNC REX Hospital, North Hills/
Midtown Raleigh (First Citizens Bank, CAPTRUST, Bank
of America), and the Colonnade/Forum (Allscripts and
Genworth) office node.
EXTREMELY LIMITED NORTH RALEIGH
DEVELOPMENT PIPELINE
Dominated by well-established single-family
neighborhoods, the fully built-out North Raleigh area
has only welcomed two new suburban developments
(Junction Six Forks and Meridian at Sutton Square)
totaling 454 units in the past five years. With an attractive
$275+ rent delta from new communities, Stonehenge
has an exceptional comparative value proposition.
UNIQUE WALKABLE GROCERY AND STRONG
RETAIL PROXIMITY
Located adjacent to Stonehenge Market, the Property
offers unique walkability to high-quality grocer
Harris Teeter and is one of only a handful of Triangle
apartment communities, such as top-tier product within
the North Hills, Cameron Village, and Bradford areas
with immediate grocery access. Stonehenge is also
within seven minutes of 5.5 MSF of retail including
Brennan Station (O2 Fitness, ACE Hardware), Market
at Colonnade (Whole Foods), and the 1.3 MSF regional
Crabtree Valley Mall.
THE APARTMENTS OF STONEHENGE | 4
$2.5 MILLION IN RECENT CAPITAL INVESTMENT
Stonehenge’s renovation repositioning has already begun with $2.5+ million in investment since
2013 to refresh exteriors and amenity spaces, including parking surface repaving and restriping,
exterior painting, roof renovations, HVAC upgrades, and new signage. Additionally, the clubhouse
has undergone a complete modernization with a two-story fitness center, gourmet demo kitchen,
and numerous gathering areas.
AFFLUENT NORTH RALEIGH DEMOGRAPHICS
Stonehenge’s appeal is bolstered substantially by its affluent nearby residential base, with homes
priced between $300,000 and $2 million in nearby subdivisions such as Greystone, Wildwood,
and Heritage Point. The Property is able to tap into North Raleigh’s high concentration of executive
housing, sought-after retail, well-ranked schools, proximity to high-caliber employers, and strong
one-mile radius demographics with $100,000+ average household incomes.
DEMOGRAPHICS
RADIUS
1-MILE
3-MILE
5-MILE
2016 Population
10,491
79,815
176,008
Census Population (2000)
9,818
73,109
160,499
Historical Population Cagr (2000-2016)
0.4%
0.6%
0.6%
$100,887
$94,811
$104,299
38.6%
33.7%
36.7%
Avg. Median Income
$81,272
$75,110
$81,626
Per Capita Income
$48,965
$44,002
$46,641
47.3
39.6
39.6
59.3%
57.7%
59.5%
$256,921
$262,296
$282,850
$1,627
$1,661
$1,791
Avg Household Income
% Household Income Over $100,000
Median Age
% Bachelor's Degree Or Higher
Median Home Value
Estimated Monthly Cost To Own
(1)
(1) 4.5% interest rate, 25% additional ownership expenses in addition to monthly mortgage payments
Source: Regis
THE APARTMENTS OF STONEHENGE | 5
STONEHENGE ALREADY ACHIEVING IMPRESSIVE RENT
boost from value-add renovations, with 251 “classic” units remaining for upgrades
RESERVE
UPGR ADE LEVEL
UPGRADE 4
UPGRADE 5
Reserve
Upgrade 4
Upgrade 5
96
69
36
$145+
$65
$85
20%
26%
26%
Faux granite with granite breakfast bar
Formica (new)
Sprayed
Stainless steel
Stainless steel
Black
Faux wood-plank vinyl
Sheet vinyl (new)
Sheet vinyl (new)
Espresso doors and new box
Refinished
Refinished
Upgraded throughout
N/A
Upgraded in the kitchen
Brushed nickel
New hardware
Brushed nickel
# OF UNITS
AV E R AG E R E N T P R E M I U M
T Y P I C A L AC H I E V E D R O C
C O U N T E R TO P S
A P P L I A N C E PAC K AG E
K I TC H E N / B AT H R O O M F LO O R I N G
C A B I N E T RY
L I G H T I N G PAC K AG E
H A R DWA R E
EXCLUSIVE PACKAGE
CLASSIC PACKAGE
$250 signed rent premium
251 units remaining for
upgrades
Quartz countertops, grey
paint, new white Shaker
cabinetry, new carpet, etc.
THE APARTMENTS OF STONEHENGE | 6
THE APARTMENTS OF
STONEHENGE
investment advisors
JEFF GLENN
440
DOWNTOWN RALEIGH:
45,000+ EMPLOYEES
Red Hat HQ, Citrix, Duke Energy,
Wells Fargo, State of North Carolina
NORTH HILLS: $2+ billion mixed-use
destination 850,000 SF high-end boutique
retail, 1 MSF top-tier office
CRABTREE VALLEY MALL (1.3 MSF RETAIL
DESTINATION): Belk, Macy’s, Brooks Brothers,
Apple, Pottery Barn, McCormick & Schmicks
SHELLY LAKE PARK &
GREENWAY ACCESS
W. M I L
LB R
Managing Director
919.573.4646
[email protected]
70
O O K R OA
D
SHELLY LAKE PARK &
GREENWAY ACCESS
JUSTIN GOOD
Managing Director
919.573.4642
[email protected]
ALLAN LYNCH
STONEHENGE
MANORS (NEW
BUILD): $550,000+
single-family homes
KROGER
Director
704.526.2819
[email protected]
LY N N R
OA D
analyst
50
SARAH GODWIN
Senior Real Estate Analyst
919.573.4643
[email protected]
debt advisors
TRAVIS ANDERSON
Senior Managing Director
704.526.2806
[email protected]
S A W M IL L R
OA D
GREYSTONE
SUBDIVISIONS:
$300,000-$1m singlefamily homes
BRENT BOWMAN
Director
704.526.2827
[email protected]
THE APARTMENTS
OF STONEHENGE
STONEHENGE MARKET
(221,000 SF):
Harris Teeter, Starbucks,
Stein Mart, Rite Aid
CREE
CORY FOWLER
DMOO
Associate Director
704.526.2807
[email protected]
R T D R IV E
0 VPD
HFF has been engaged by the owner of the property
[properties] to market it [them] for sale. Information
concerning the property [properties] described herein
has been obtained from sources other than HFF, and
neither Owner nor HFF, nor their respective equity holders,
officers, employees and agents makes any representations
or warranties, express or implied, as to the accuracy or
completeness of such information. Any and all reference
to age, square footage, income, expenses and any other
property specific information are approximate. Any
opinions, assumptions, or estimates contained herein are
projections only and used for illustrative purposes and
may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners,
officers, employees and agents disclaim any liability that
may be based upon or related to the information contained
herein. Prospective purchasers should conduct their own
independent investigation and rely on those results. The
information contained herein is subject to change.
B R ID G E P O
3 2 ,0 0
©2016 HFF and HFFS (HFF Securities L.P.) are owned
by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices
nationwide and is a leading provider of commercial real
estate and capital markets services to the U.S. commercial
real estate industry. HFF together with its affiliate HFFS
offer clients a fully integrated national
capital markets platform including debt placement,
investment sales, equity placement, advisory services,
loan sales and commercial loan servicing. For more
information please visit hfflp.com or follow HFF on Twitter
at twitter.com/hff.
D
R R OA
Holliday Fenoglio Fowler, L.P. acting by and through
Holliday GP Corp a North Carolina licensed real estate
broker (“HFF”).
SEVEN OAKS SWIM &
RACQUET CLUB
THE APARTMENTS OF STONEHENGE | 7