Fairlawn Apartments presents an exceptional multifamily investment opportunity in the heart of Virginia's New River Valley. This 17-unit apartment complex is strategically located at 7576 Old Peppers Ferry Loop in Fairlawn, VA 24141, offering investors a rare combination of affordability, strong fundamentals, and significant upside potential.

Property Overview:The property features fifteen one-bedroom/one-bathroom units and two two-bedroom/one-bathroom units totaling 8,050 square feet. Built in 1940 and situated on approximately 0.55 acres, Fairlawn Apartments has been well-maintained and offers substantial value-add opportunities through rent optimization and strategic improvements.

Investment Highlights:

Transit-Oriented Location: Fairlawn Apartments benefits from exceptional accessibility with direct access to Interstate 81 and US Route 11, connecting residents to Blacksburg, Radford, and the broader New River Valley region. This prime location ensures consistent tenant demand and easy commuting access.

Employment Center Proximity: The property is within 10 minutes of major employers including Radford University, Carilion New River Valley Medical Center, Goodwill Industries, and numerous other regional employment centers. This proximity to stable employers creates sustained rental demand and low vacancy risk.

Strong Value-Add Opportunity: Current rents average $584/month ($1.23/SF) for one-bedroom units and $625/month ($0.96/SF) for two-bedroom units, significantly below market comparables. Market analysis indicates potential rents of $695/month ($1.54/SF) for one-bedroom units and $850/month ($1.31/SF) for two-bedroom units, representing substantial upside of approximately 22% rent growth potential.

Attractive Entry Pricing: At $875,000 ($51,471/unit, $108.70/SF), Fairlawn Apartments offers exceptional value compared to recent market sales averaging $152,250/unit and $109.09/SF. This below-market pricing provides immediate equity and reduced risk profile.

Financial Performance:

Current Operations: The property currently generates $119,100 in annual gross scheduled rent with a 6.46% cap rate on current operations. Net operating income stands at $56,534 annually with manageable expenses at 50% of effective gross income.

Projected Performance: Upon implementing market-rate rents, the property is projected to generate $145,500 in annual gross scheduled rent, increasing the cap rate to 8.29%. Year 1 projected NOI of $72,572 represents 28% growth from current operations, with improved expense ratios at 47.5% of EGI.

Debt Service Coverage: With conventional 70% LTV financing at 6.50% over 30 years, the property achieves a 1.56 debt coverage ratio in Year 1, providing substantial cushion for investors and lenders.

Market Fundamentals:

Fairlawn and the greater Radford area offer compelling multifamily investment dynamics driven by:

• Radford University's enrollment of over 9,000 students creating consistent housing demand
• Stable regional employers including ADVA Corporation, Kollmorgen, Thermasteel, Moog, and healthcare facilities
• Limited new apartment construction maintaining supply constraints
• Affordable housing positioning attracting workforce renters
• Strategic location along I-81 corridor facilitating regional growth

Unit Mix & Rental Analysis:

One-Bedroom Units (15 units):

• Average Size: 450 SF
• Current Rent: $578/month ($1.29/SF)
• Market Rent: $695/month ($1.54/SF)
• Upside: $117/month per unit (20% increase)

Two-Bedroom Units (2 units):

• Average Size: 650 SF
• Current Rent: $625/month ($0.96/SF)
• Market Rent: $850/month ($1.31/SF)
• Upside: $225/month per unit (36% increase)

Comparable properties in the Radford market including Redcoat Manor Apartments, The Landings, and Georgetown Townhomes demonstrate sustainable market rents supporting the projected rental growth strategy.

Investment Strategy:

The optimal investment approach for Fairlawn Apartments includes:

1. Immediate Rent Optimization: Implement modest rent increases to current tenants while maintaining high occupancy, bringing units closer to market rates
2. Unit Improvements: Selective upgrades to kitchens, bathrooms, and flooring in vacant units to justify premium rents
3. Operational Efficiencies: Professional management implementation, utility expense reduction, and maintenance optimization
4. Tenant Retention: Improved property management and tenant communication to reduce turnover costs
5. Long-term Appreciation: Hold strategy capitalizing on New River Valley population and employment growth

Area Amenities & Attractions:

Fairlawn residents enjoy access to exceptional recreational, educational, and lifestyle amenities:

• Radford University campus and sporting events
• New River Trail State Park for hiking and outdoor recreation
• Downtown Radford restaurants, shopping, and entertainment
• Proximity to Virginia Tech in Blacksburg (15 minutes)
• Blue Ridge Parkway and mountain recreation (30 minutes)
• Quality public schools and family-friendly community environment

Why Invest in Fairlawn Apartments?

• Below-Market Entry: $51,471/unit vs. market average of $152,250/unit
• Proven Rent Growth: 22% upside to market rents with comparable property verification
• Strong Cap Rate: 8.29% stabilized cap rate in favorable interest rate environment
• Recession-Resistant: Affordable housing with diverse employment base and university demand
• Geographic Diversification: Southwest Virginia market with sustainable fundamentals
• Cash Flow Positive: 9.95% cash-on-cash return in Year 1 after rent adjustments
• Experienced Ownership: Well-maintained property with stable historical operations

Due Diligence & Documentation:

Complete offering materials available including property financials, rent rolls, expense history, market rent analysis, comparable sales data, and property inspection reports. Site tours available by appointment through Marcus & Millichap.

Contact Information:

This exclusive listing is presented by The Uzun Group of Marcus & Millichap.

Fairlawn Apartments represents a compelling combination of value pricing, strong market fundamentals, and significant upside potential for investors seeking stable cash flow and appreciation in Virginia's growing New River Valley region.

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