Hampton Roads Multifamily: The $60K Gap Between Buyers & Sellers | Market Reality Check 2025

Hampton Roads Multifamily: The $60K Gap Between Buyers & Sellers | Market Reality Check 2025

There's a massive pricing disconnect destroying multifamily deals in Hampton Roads right now. Sellers want $120K/unit based on 2022 valuations. Buyers are offering $90K based on today's 6.5-7% cap rate requirements. Same properties. Same market. Completely different math.

In this video, I break down exactly where deals are ACTUALLY closing in Norfolk, Virginia Beach, Chesapeake, and Hampton — not where sellers wish they were closing. I'll show you the real cap rates, actual sales comps, and why insurance cost explosions are forcing valuations down 15-20% from peak pricing.

What You'll Learn:✅ Real cap rates by asset class: 6.0% for Class A, 6.4% for Class B/C✅ Actual price per unit: $241K (4-5 Star) vs $183K (3 Star) vs $116K (1-2 Star)✅ Why insurance costs going from $300 to $1,200/unit are crushing NOI✅ Case study: Two properties, same market, $99K/unit price difference✅ Tactical playbook for buyers AND sellers in 2025

Key Timestamps:0:00 - The $60,000 Gap Killing Deals1:30 - Hampton Roads Vacancy Reality (5.5% vs 8.1% National)3:30 - Where Deals Are Actually Closing (Real Comps)7:00 - Case Study: $241K vs $142K Per Unit9:00 - Tactical Takeaways for 2025

Market Data (Q3 2025):

• Hampton Roads vacancy: 5.5% (better than 8.1% national average)
• Total sales volume: $785M across 76 transactions (trailing 12 months)
• Cap rate expansion: 120-140 basis points from 2022 to 2025
• Annual absorption: 2,256 units (positive demand signal)
• Insurance impact: $5,000-$7,500/month NOI reduction on 100-unit properties

Core Issue: Sellers anchored to 2022 valuations (5.0-5.5% cap rates) while buyers require 6.5-7.0% cap rates due to higher debt costs and insurance expenses. This creates a $60K/unit valuation gap on identical properties.

Real Comps Analyzed:

• Banyan Grove Apartments (Virginia Beach): 288 units, $69.5M sale, $241K/unit, low 6% cap
• Pembroke Lake Apartments (Chesapeake): 300 units, $42.5M sale, $142K/unit

Market Fundamentals: Hampton Roads shows strong fundamentals with vacancy below national average and positive absorption, but pricing MUST reflect current debt environment. Properties ARE trading — just at today's cap rates, not yesterday's.

Whether you're buying, selling, or operating multifamily in Hampton Roads, this video gives you the real numbers you need to underwrite deals in today's market — not yesterday's.

About JustFerg1:Commercial real estate analysis and market intelligence for multifamily investors. Real data. Real deals. No fluff.

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