Built in 1963 and upgraded numerous times over the years, 101 North Ripley Apartments (North Ripley) is a 189-unit, institutionally-maintained, garden-style multifamily community. Located in the West Alexandria submarket of Alexandria, VA, the property is a consistent, cash-flowing asset, presenting operational upside and a strong value-add opportunity to drive additional revenue with the completion of a two-tiered unit renovation program.

101 N. Ripley’s primary amenities include an onsite leasing office, dog park, and playground. The Sponsor is evaluating the opportunity to convert the existing laundry rooms into additional resident amenity areas (e.g., storage, gym) once the washer and dryer units are installed. The Sponsor plans to renovate 90 units over three years (2.5 units per month). Renovations will be completed by an in-house construction company and will consist of stainless steel appliances, quartz countertops, tile backsplashes, and luxury vinyl plank flooring. Renovated units are expected to achieve a premium of $175 per month. The Sponsor will also add washers and dryers to every unit, which are expected to achieve a premium of $96 per month. 20% of units will receive washers and dryers in year one, 40% more in year two, and the remaining in year three. The property is anticipated to be sold in three years at a 4.75% cap for $70 million ($371k per unit).

• Proven and Successful Repeat Sponsor: Willow Creek Partners has successfully completed two multifamily investments on the Crowdstreet Marketplace, and their third investment (Lynnwood Apartments) is currently under contract to sell at a forecasted 90%+ net investor IRR and 2.0x equity multiple.
• Strong Opportunity through Interior Renovations and Aligning Rents to Market: All of the units are in classic condition, which presents a significant opportunity to increase the value and appeal of the property by renovating the kitchens, bathrooms, and flooring, and adding in-unit washers and dryers. The current asking rents that are being achieved at the property (without renovations) are over $200 higher than the average in-place rents, thus creating an opportunity to increase rents to market.
• Very Strong and Stable Location: West Alexandria has historically been one of the strongest and most stable submarkets inside the Capital Beltway. 101 N. Ripley will benefit from the recent arrival of Amazon’s new $2.5 billion HQ2 that is located a few miles away. This facility is scheduled to be completed Q1 2023 and expected to deliver 25k jobs in the region over the next decade. The property is also within close proximity to U.S. Route 1, George Washington Parkway, I-395/I-495/I-95, and the Van Dorn Metro Station (Blue/Yellow lines), which allows residents easy access to the top employment centers in the area. In addition, the property is blocks away from the planned Landmark Mall, a 4 million SF mixed-use urban village redevelopment, which will include the state-of-the art $1 billion Inova Alexandria Hospital.
• Compelling Demographics and Rent vs. Own Spread: The average household income in a one/three-mile radius is $112k/$132k. This area also maintains a 4.3% unemployment rate while increasing wages 4.5% YOY. Based on the average single family home price of $701k and a 10% down payment, the monthly cost to own in the area is $2,500+/mo higher than the post renovated rents at 101 N. Ripley, representing a 130% premium.
• Minimal Deferred Maintenance Required: Built in 1963, 101 N. Ripley has been institutionally owned and managed over the years. Based on the results of a recently completed property condition report, the property requires minimal deferred maintenance.