Investment Overview

Park Station Villas represents an exceptional multifamily value-add investment opportunity in Waynesboro, Virginia's thriving Shenandoah Valley market. This fully renovated 28-unit apartment community at 260 N Commerce Avenue offers investors immediate cash flow with substantial expansion potential through an adjacent 11-unit redevelopment opportunity at 280 N Commerce Avenue.

Property Highlights

Originally constructed in 1941 and comprehensively renovated in 2023, Park Station Villas features modern interiors across 15,168 square feet in a two-story building configuration. The diverse unit mix includes six studio apartments (493 SF average), twenty one-bedroom/one-bathroom units (545 SF average), and two two-bedroom/one-bathroom units (653 SF average), providing multiple price points for the area's workforce housing market.

Recent Capital Improvements

The 2023 renovation transformed the property with contemporary finishes including luxury vinyl plank flooring throughout, fully updated kitchens with modern cabinetry and appliances, renovated bathrooms with updated fixtures, fresh interior and exterior paint, and enhanced curb appeal. These improvements position the property to command premium rents while minimizing near-term capital expenditure requirements.

Expansion Opportunity

The adjacent property at 280 N Commerce Avenue is included and ready for redevelopment, offering potential for an additional 11 units. This unique expansion capability provides investors with multiple value creation strategies: immediate stabilized cash flow from the renovated 28 units combined with long-term appreciation through strategic development of the adjacent parcel.

Location Advantages

Waynesboro is strategically positioned in the heart of the Shenandoah Valley with exceptional connectivity via I-64, I-81, and Route 250. The property benefits from proximity to major employment centers including Augusta Health Center, Target Distribution Center, and Hershey Chocolate Plant—all within 15 minutes. This central location between Charlottesville and Staunton makes Waynesboro an attractive option for commuters and residents seeking affordable living outside urban centers.

Economic & Employment Base

Waynesboro and the Greater Augusta County region benefit from a diversified economy anchored by major employers across healthcare, manufacturing, logistics, and technology sectors. Key employers include:

• Lumos Networks: Regional telecommunications infrastructure provider
• Amazon: E-commerce fulfillment operations
• Augusta Health: Major regional medical center
• Hershey Company: Manufacturing facility
• Target: Distribution center
• Invista: Chemical manufacturing
• McKee Foods: Food manufacturing
• Northrop Grumman (Coming 2025): Defense contractor expansion
• Telos (Coming 2025): Cybersecurity firm

Additionally, the region's proximity to the University of Virginia, Mary Baldwin University, and UVA Health provides additional employment stability and rental demand drivers.

Market Fundamentals

Waynesboro offers a compelling combination of economic stability, housing affordability, and growth potential. The city's position in the Shenandoah Valley provides access to outdoor recreation and tourism while maintaining proximity to major employment markets. Limited new multifamily construction in the workforce housing segment creates favorable supply-demand dynamics for existing stabilized assets. The area's natural beauty, lower cost of living compared to nearby Charlottesville, and improving job market continue to attract residents seeking value and quality of life.

Financial Performance

• Asking Price: $1,870,000
• Price per Unit: $66,786
• Price per SF: $123.29
• Current NOI: $127,484
• Year 1 Pro Forma NOI: $180,597
• Current Cap Rate: 6.82%
• Pro Forma Cap Rate: 9.66%
• Current Occupancy: 86%

Value-Add Analysis

Current in-place rents average $803/unit ($1.48/SF), positioning 12% below market potential of $903/unit ($1.67/SF). Market comparable analysis demonstrates strong rental upside across all unit types:

• Studios: Currently $686/month vs. market potential $724/month (+6%)
• One-Bedrooms: Currently $829/month vs. market comparables averaging $1,211/month (+46% upside)
• Two-Bedrooms: Currently $887/month vs. market comparables averaging $1,193/month (+35% upside)

The significant rent growth opportunity reflects the property's recent renovation positioning it to capture market-rate rents as leases roll. Comparable properties in the area including Mountain Ridge Apartments ($1,209-$1,364 for 1-2BR) and Augusta Farms ($1,280-$1,307 for 1-2BR) validate the pro forma rent assumptions.

Investment Returns

Based on 70% LTV financing at 6.50% interest with 30-year amortization:

• Year 1 Cash-on-Cash Return: 14.49%
• Debt Coverage Ratio: 1.82x
• Down Payment: $561,000
• Total Return (including principal paydown): 17.28%

Comparable Sales Validation

Recent area transactions demonstrate strong investor appetite for multifamily assets in the Waynesboro/Augusta County market:

• 158 S Bayard Avenue (12 units): $95,833/unit, October 2024
• Summercrest Apartments (92 units): $69,565/unit, May 2025
• Evergreen Townhouses, Staunton (24 units): $151,111/unit, January 2024

Park Station Villas' pricing at $66,786/unit represents competitive value given the 2023 renovation and expansion potential.

Investment Strategy

This opportunity appeals to value-oriented investors seeking:

1. Immediate Cash Flow: Stabilized 28-unit portfolio with strong Year 1 returns
2. Rent Growth: Substantial upside to market rents as renovated units capture premium pricing
3. Future Development: Adjacent 11-unit expansion for long-term value creation
4. Workforce Housing: Resilient asset class in growing secondary market
5. Capital Preservation: Recent renovations minimize near-term capex requirements

Regional Growth Catalysts

The Shenandoah Valley region is experiencing sustained growth driven by quality of life factors, business expansion, and infrastructure improvements. Waynesboro benefits from its position along the I-64 corridor connecting Richmond and West Virginia, making it attractive for logistics and distribution operations. The announced Northrop Grumman and Telos expansions signal continued economic diversification and job growth, further supporting residential demand.

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