Investment Overview

Balview Commons Apartments presents a compelling multifamily investment opportunity in Norfolk's desirable Ocean View neighborhood. This 20-unit apartment community at 171-179 W Balview Avenue offers investors a stabilized asset with significant upside potential in one of Virginia's strongest rental markets.

Property Highlights

Built in 1987, this well-maintained property features two brick buildings totaling 13,600 square feet on 0.24 acres. The unit mix includes eight one-bedroom/one-bathroom units (650 SF average) and twelve two-bedroom/one-bathroom units (700 SF average), appealing to the area's diverse renter demographic including military personnel, young professionals, and families.

Location Advantages

Strategically positioned in Norfolk's Ocean View district, Balview Commons benefits from exceptional transit access via I-64, I-264, I-564, and Granby Street. The property sits within 10 minutes of Norfolk International Airport, IKEA, and Simon Premium Outlet Mall, providing residents with unmatched convenience.

Military & Economic Drivers

Norfolk anchors the Hampton Roads metropolitan area, home to over 1.7 million residents. The property's proximity to Naval Station Norfolk—the world's largest naval base—and Norfolk Naval Shipyard ensures consistent rental demand from military personnel and defense contractors. Major employers including Sentara Healthcare, Eastern Virginia Medical School, Children's Hospital of The King's Daughters, and Dominion Enterprises create a diversified employment base supporting stable occupancy.

Regional Growth & Development

The Hampton Roads region is experiencing transformative growth with over $4.5 billion in active infrastructure and development projects:

• HRBT Expansion ($3.9B): Completion in Spring 2027 will significantly improve regional connectivity
• Rivers Casino Portsmouth ($340M): Opened January 2023, driving tourism and entertainment activity
• Atlantic Park ($350M): Pharrell Williams-backed mixed-use development featuring surf park, dining, retail, and entertainment

Financial Performance

• Asking Price: $2,699,000
• Price per Unit: $134,950
• Price per SF: $198.46
• Current NOI: $182,162
• Year 1 Pro Forma NOI: $210,576
• Current Cap Rate: 6.75%
• Pro Forma Cap Rate: 7.80%
• In-Place Occupancy: 94%

Value-Add Opportunity

Current rents average $1,176/unit ($1.73/SF), positioning 17-28% below market potential of $1,360/unit ($2.00/SF). Market comparable analysis confirms strong upside, with renovated units in the submarket achieving $1,200-$1,300 for two-bedrooms and $1,050-$1,300 for one-bedrooms. Interior photos reveal recent renovations including luxury vinyl plank flooring, updated kitchens with modern cabinets and appliances, and fresh paint, indicating the seller has begun capturing rental premiums.

Investment Returns

Based on 70% LTV financing at 6.25% interest with 30-year amortization:

• Year 1 Cash-on-Cash Return: 8.77%
• Debt Coverage Ratio: 1.51x
• Down Payment: $809,700

Market Fundamentals

Norfolk's multifamily market benefits from limited new construction in the workforce housing segment, strong military presence ensuring demand stability, and regional population growth driven by economic diversification. Recent comparable sales in Ocean View range from $110,000-$163,333 per unit, validating the subject property's competitive pricing at $134,950/unit.

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