premier general aviation regional reliever airport at … · 8 reliever airports in virginia...

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PREMIER GENERAL AVIATION REGIONAL REL IEVER AIRPORT AT THE INTERSECTION OF FOUR MAJOR HIGHWAYS

Hampton Roads

HAMPTON ROADS EXECUTIVE AIRPORT5164 WEST MILITARY HIGHWAY | CHESAPEAKE, VA

CBRE|Hampton Roads

TABLE OF CONTENTS

R. WORTH REMICK, SIORSenior Vice President+1 757 228 [email protected]

PATRICK GILLSenior Vice President+1 757 228 [email protected]

FOR MORE INFORMATION PLEASE CONTACT

INVESTMENT ADVISORS

JOANNA HASTINGSSenior Associate+1 757 228 [email protected]

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).KATRIN GIST

Vice President+1 425 4626986 [email protected]

HAMPTON ROADS EXECUTIVE AIRPORT

CONFIDENTIALITY AGREEMENTThis is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of The Hampton Roads Executive Airport (“Property”).

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property.

All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE|Hampton Roads. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are

approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner or CBRE|Hampton Roads, nor any of their respective directors, officers, affiliates or representatives are any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property

unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE|Hampton Roads. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE|Hampton Roads.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE|Hampton Roads.

01 02 03 04EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW LOCATION OVERVIEW

1 CBRE|Hampton Roads

The OfferingCBRE/Hampton Roads is pleased to exclusively present the sale of a general aviation

regional reliever airport for the Norfolk International Airport. Hampton Roads

Executive Airport (KPVG) is a privately owned general aviation airport containing a

terminal building (6627 SF), restaurant, office and maintenance buildings (12,198

SF), a warehouse building (40,000 SF), aircraft storage T-Hangers (288,258 SF),

and aviation business hangers (94,964 SF) for a total of 442,047 SF on 664 acres

of land. The operation generates over $1 million annually in fuel sales and NOI,

has nearly a 95% occupancy rate for the 42 buildings available, and receives

additional income from transient aircraft nightly tie-downs, ground transportation,

office space, and food and beverage. There is substantial undeveloped land for

master planned air access warehouse buildings or other potential uses.

The Virginia Airport system consists of 66 airports. The Virginia Air Transportation

System Plan (VATSP) Classifies airports into five categories based on their role

in the overall system: Commercial Service, Reliever, General Aviation-Regional,

General Aviation Community and Local Service. Hampton Roads Executive Airport

is identified as KPVG, a General Aviation Regional Reliever airport since it serves

a large geographic area and serves businesses as well as recreational users by

offering services and amenities such as fueling, maintenance, storage, ground and

flight instruction. KPVG also serves to reduce congestion at nearby commercial

services airports by providing comparable land side and air side facilities to general

aviation operators. Currently there are 21 general aviation regional airports and

8 reliever airports in Virginia contributing over 4,600 jobs with $860 million in

economic activity combined. KPVG created close to 500 jobs and $60 million in

economic activity in 2016.

EXECUTIVE SUMMARY

Offering Highlights OFFER PRICE UNPRICED

SQUARE FEET 4 442,047

ACRES 664.22

2017 NOI Approximately $1,229,788

2HAMPTON ROADS EXECUTIVE AIRPORT

VIRGINIA’S AIRPORT SYSTEM

Airport ClassificationThe Virginia airport system consists of 66 airports, including the Washington

Dulles International and Ronald Reagan Washington National Airports. The

Virginia Air Transportation System Plan (VATSP classifies the airports into five

categories based on their role in the overall system:

COMMERCIAL SERVICES - These airports provide scheduled commercial

airline services and accommodate at least 10,000 annual passenger enplanements.

RELIEVER - Reliever Airports are general aviation airports located in metropolitan

areas that serve to reduce congestion at nearby commercial airports.

GENERAL AVIATION - REGIONAL - These airports serve large geographic

areas and are often the only airport facilities in the region.

GENERAL AVIATION - COMMUNITY - These airports serve the needs of

businesses and recreational users but often serve a more limited market area than

the regional airports

LOCAL SERVICES - Local Service Airports provide limited general aviation

services and accommodate comparatively low levels of activity.

VIRGINIA’S ECONOMY BENEFITS FROM A DIVERSE SYSTEM OF 9 COMMERCIAL SERVICE AIRPORTS AND 57 GENERAL AVIATION AIRPORTS

COMMERCIAL SERVICES

RELIEVER

GENERAL AVIATION - REGIONAL

GENERAL AVIATION - COMMUNITY

LOCAL SERVICES

LeeCounty Twin

County

Front Royal Warren County

Luray Caverns

Lonesome Pine

VirginiaHighlands

GrundyMunicipal

TazewellCounty

MountainEmpire

New RiverValley

Virginia Tech-Montgomery

Executive

Blue Ridge Regional

Roanoke-Blacksburg Regional

LynchburgRegional

Shenandoah Valley Regional

RichmondInternational

Charlottesville- Albemarle

NorfolkInternational

Newport NewsWilliamsburgInternational

Ronald ReaganWashington National

Washington DullesInternational

OrangeCounty Shannon

LeesburgExecutive

Warrenton-Faquier

ManassasRegional

StraffordRegional

Hanover CountyMunicipal

Richmond ExecutiveChesterfield County

Hampton RoadsExecutive

ChesapeakeRegional

IngallsField

Danville Regional

William M. Truck

Mecklenburg BrunswickRegional

Emporia-GreensvilleRegional

SuffolkExecutive

Dinwiddie County

Farmville Municipal

Louisa County

WinchesterRegional

CulpeperRegional

TappahannockEssex County

Middle Peninsula Regional

Accomack County

New KentCounty

Williamsburg Jamestown

WakefieldMunicipal

Franklin Municipal

Lake Country Regional

Blackstone AAF

Brookneal-CampbellCounty

TangierIsland

New London

Smith Mountain

Lake

Falwell

WaynesboroEagle’s Nest

Bridgewater Air Park

New Market

GordonsvilleMunicipal

LakeAnna

HummelField

CreweMunicipal

LuenburgCounty

Chase CityMunicipal

Lawrenceville-BrunswickMunicipal

SOURCE: VIRGINIA DEPARTMENT OF AVIATION


INVESTMENT HIGHLIGHTS SECOND HIGHEST RANKED

NON-TOWERED AIRPORT

Ranked #2 in state of Virginia

among 57 non-towered airports

in annual operations (takeoffs and

landings). A non-towered airport is

an airport with no operating tower

or air traffic control unit. Instead

of receiving instructions from

a tower controller, pilots follow

recommended procedures for non-

towered airports.

RANKED THIRD FOR ECONOMIC DRIVERS

Ranked #3 for Economic Drivers

among all Virginia General

Aviation Airports. Airports are

essential components of the states

infrastructure for moving people

and goods facilitating commerce

and maintaining a high quality-

of-life for Virginia’s residents.

Hampton Roads Executive Airport presents an

excellent opportunity for an airport investor to

acquire a well-positioned, easily accessible, Non-

Towered General Aviation Regional Reliever Airport

within Virginia.


FEDERAL GRANTS FOR DEVELOPMENT

KPVG has received and remains

eligible for state and federal grants

for development projects and

maintenance. The acceptance of

these grants will require the use of

the property to remain operating as

a public use airport but otherwise

are not repayable.

NET OPERATING INCOME

2017 Net operating Income

approximately $1,229,788. NOI

has increased annually the past

seventeen years. To acquire

financial information please sign

and return the confidentiality

agreement, which shall be released

at broker’s sole discretion.

EASILY ACCESSIBLE LOCATION

The Property is located on and

accessed by US Highway 58.

Average daily traffic counts are

estimated at 74,000 ADT.

DIVERSIFIED TENANT BASE

Diversified tenant base with

over 25 businesses and

200 aircraft storage tenants.

5 CBRE|Richmond

PROPERTY OVERVIEW



Building Specifications

PROPERTY OVERVIEW

ADDRESS LAND AREA SIZE AIRPORT ID YEAR BUILT ZONING

RUNWAYS PARKING SPACES ROOF TAX ID OVERALL INVESTMENT

OCCUPANCY RATE

5164 West Military

Highway, Chesapeake, VA

664.22 Acres

A-1 (Agricultural District & Industrial

District) M-2 (Light

Industrial) + Airport Conditional Use

Permit

1950-2017KPVG442,047

Square Feet

North/South Cross-wind Runway (3,525’ x 70’)

and new in 2014 East/West Runway

(5,350’ x 100’)

132 surface lots spaces, with

additional on site parking adjacent to

hangars

90 - 95%Investment of

$53,000,000 in buildings and site work since 2000

0210000000370, 0220000002440,

304358300

The terminal buildings have a flat 4-ply roof system. All hangars have

pitched, steel roofs.


# OF BUILDINGS CONSTRUCTIONYEAR BUILT

GROSS BUILDING SF

PUBLIC USE TERMINAL 1 Steel Frame 2011 6,627

RESTAURANT & OFFICES 1 Masonry 1968 5,577

ADMINISTRATION OFFICE 1 Masonry 1969 5,421

AIR/LAND FREIGHT 1 Metal 2014 40,000

OLD T-HANGARS 9 Metal 1950-1970 95,208

CORPORATE T-HANGARS 14 Metal 2004-2011 193,050

OLD BUSINESS HANGARS 7 Metal 1950-1980 59,198

NEW BUSINESS HANGARS 7 Metal 2003-2017 35,766

MAINTENANCE SHED 1 Metal 2008 1,200

TOTAL 42 442,047

Type Of Improvements:


Floor PlansAIRPORT MASTER LAYOUT PLAN

WELL SITE No. 1CITY OF CHESAPEAKE

CITY OF CHESAPEAKEWELL SITE No. 2

WELL SITE No. 3

CITY OF CHESAPEAKEWELL SITE No. 4

MALSR CRITICAL LIGHT PLANE

LEGEND

EX. RPZ FOR ARC B-II, MINIMUMSNOT LESS THAN 1 MILE(IE. NON-PRECISION)500'x1000'x700'

EX & FUT RPZ FOR ARC B-II (small),VISUAL250'x1000'x450'

EX & FUT RPZ FOR ARC B-II (small)MINIMUMS NOT LESS THAN 1 MILE(IE. NON-PRECISION)250'x1000'x450'

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N67° 03' 35.98"E

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N22° 56' 29.18"W158.82'

N30° 11' 02.57"W331.62'

N30° 47' 38.70"W250.21'

N34° 28' 17.97"W653.12'

N33° 49' 32.44"W578.50'

N11° 26' 48.96"W38.86'

S20° 49' 08.41"W58.27'

N55° 15' 50.31"W

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N51° 53' 23.22"W

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N51° 10' 49.79"W246.52'

N48° 59' 56.74"W

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N84° 34' 45.50"W

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N88° 45' 04.05"W115.48'

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EXISTING ON-AIRPORT EASEMENTS

ADJACENT PROPERTY OWNERSHIP INFORMATION

MAGNETICDEVIATION9 DEG 59'(2001)

EXISTING PROPERTY OWNERSHIP

EXISTING EASEMENT OWNERSHIP

FUTURE PROPERTY ACQUISITIONS

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*PDF COPY AVAILABLE IN DEAL ROOM FOR FURTHER REVIEW

11 CBRE|Hampton Roads11Hampton Roads aiRpoRt, CHesapeake, Va

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All marks displayed on this document are the property of their respective owners.



US

58

13 CBRE|Hampton RoadsAll marks displayed on this document are the property of their respective owners.

LOCATION OVERVIEWHampton Roads OverviewLocated at the heart of the Mid-Atlantic, Hampton Roads continues to be a leading center of

commerce, and the fastest growing port on the east coast, providing direct access to over 80

ports worldwide.

Hampton Roads is also home to approximately 1.7 million people, and is the second largest

market between Washington D.C. and Atlanta. The region is comprised of 10 cities and five

counties, and encompasses two markets: The Southside and the Peninsula.

RESOURCES Two major railroads serve the Hampton Roads area with capabilities for

distribution throughout the east coast and mid-west. Strong international growth, with 164

international firms in the region, representing 28 countries. Mild, temperate climate throughout

the region supports great recreational opportunities for residents, and encourages tourism.

The Port of Virginia is the 5th largest Port of all U.S. Ports and the third largest container port

on the U.S. East Coast. It is a hub for the world’s leading international shipping companies.

HAMPTON ROADS IS THE 7TH LARGEST METRO AREA IN THE SOUTHEAST U.S. AND THE 2ND LARGEST BETWEEN D.C. & ATLANTA

Norfolk International Airport (ORF) and Newport News/ Williamsburg Airports (PHF) support nine major airlines, providing 100 flights per day to international gateway cities.

Highways

Air Service

Hampton Roads is less than a day’s drive from 97 million consumers, with the Chesapeake Bay Bridge-Tunnel giving coastal highway traffic direct access to and from the area.

VIRGINIA BEACH 453,628

CHESAPEAKE 240,485

NORFOLK 247,087

NEWPORT NEWS 183,218

HAMPTON 137,492

SUFFOLK 91,722

PORTSMOUTH 96,492

POPULATIONS OF MAJOR CITIES:


66 PUBLIC-USE AIRPORTSin the Commonwealth

AIRPORT POSITIONS FILLED

2017

146,660TOTAL VIRGINIAEMPLOYMENT

2010-2020

3.6%

JOBS

$7.7 BILLION IN PAYROLL ANNUALLY*VIRGINIA DEPARTMENT OF AVIATION

4,000+ AIRCRAFT TAKEOFFS AND LANDINGS IN VIRGINIA AIRPORTS*VIRGINIA DEPARTMENT OF AVIATION

VISITORS CAME TO THE COMMONWEALTH THROUGH ITS AIRPORTS SPENDING AN ESTIMATED $3.6B

Economic Benefit of Virginia’s Airports

72,000 PEOPLE BOARDED COMMERCIAL AIR CRAFTS DAILY


*VIRGINIA DEPARTMENT OF AVIATION

*VIRGINIA DEPARTMENT OF AVIATION


VIRGINIA AIRPORTS MAKE SIGNIFICANT CONTRIBUTIONSAIRPORTS ARE ESSENTIAL COMPONENTS OF THE STATE’S INFRASTRUCTURE, MOVING PEOPLE AND GOODS, FACILITATING COMMERCE AND MAINTAINING A DESIRABLE QUALITY OF LIFE FOR VIRGINIA’S RESIDENTS.

Businesses and Residents Depend on AirportsCompanies of all sizes, from major employers to small businesses, depend on Virginia’s airports for fast and efficient

transportation of people, supplies and products. Residents and visitors rely on Virginia’s airports for comfortable and

convenient travel to and from cities across the U.S. and the world.

Air Transportation Brings Tourists to VirginiaTourism is another important contributor to Virginia’s economy. It relies on commercial and general aviation to

transport millions of visitors annually to the state’s tourist destinations, including theme parks, state parks, scenic

byways, historical sites and beaches.

Airports Create Economic Benefits for All VirginiansThe economic benefits of airports extend well beyond the boundaries of airports. Even residents who might never

fly benefit from airports through the creation of businesses, jobs income and tax revenues. Air cargo and freight

operations support just-in-time delivery for manufacturers and consumers alike, while providing overnight shipping

capabilities to global markets.

Airports Enrich the Quality Of Life For Virginia ResidentsAirports also produce measurable value and intangible benefits difficult to quantify. Communities throughout Virginia

rely on airports for essential services, aerial applications, traffic monitoring and law enforcement. Airports also enhance

quality of life by providing educational and recreational opportunities, such as pilot training, air shows, ballooning,

sightseeing and other types of recreational flying.

SOURCE: VIRGINIA DEPARTMENT OF AVIATION

16HAMPTON ROADS EXECUTIVE AIRPORTSOURCE: VIRGINIA DEPARTMENT OF AVIATION 16 CBRE|Richmond

R. WORTH REMICK, SIORSenior Vice President+1 757 228 [email protected]

PATRICK GILLSenior Vice President+1 757 228 [email protected]

FOR MORE INFORMATION PLEASE CONTACT

INVESTMENT ADVISORSJOANNA HASTINGSSenior Associate+1 757 228 [email protected]

Hampton Roads

HAMPTON ROADS EXECUTIVE AIRPORT5164 WEST MILITARY HIGHWAY | CHESAPEAKE, VA

KATRIN GISTVice President+1 425 4626986 [email protected]

premier general aviation regional reliever airport at … · 8 reliever airports in virginia...

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