Harrisonburg Multifamily Portfolio

Justin Ferguson has been prominently featured in national and international media for his groundbreaking approach to bridging multifamily real estate with Virginia’s wine industry. His recent press release was distributed across more than 500 outlets with an estimated reach of 44 million readers, including major platforms like AP News, KTIV, WGEM, and KVOA . These articles highlight Ferguson’s nearly decade-long track record as a trusted multifamily real estate advisor, alongside his expertise as a WSET Level 3 sommelier and Wine Director at The Underground Kitchen. Recognized for his innovative strategies, community advocacy, and ability to connect investors with unique opportunities, Ferguson’s dual reputation continues to expand—solidifying him as both a leader in Virginia’s real estate market and a respected voice in wine culture and education

# How Much Should I Budget for Insurance on an Apartment Building in Richmond, Virginia? For a stabilized Richmond multifamily property, insurance typically runs $0.18 to $0.28 per square foot annually depending on your building's class — but that number can swing more than double depending on which submarket you're in. On a 200-unit, 850-square-foot-average property, that's the difference between roughly $30,000 and $48,000 a year in insurance alone. ## Why insurance costs vary so much by class and submarket Richmond's 4 & 5 Star properties average $0.28 per square foot in annual insurance, compared to $0.21 for 3-Star and $0.18 for 1 & 2-Star assets. That gap tracks with replacement cost and amenity exposure — newer, higher-end buildings cost more to rebuild and often carry more liability exposure from pools, fitness centers, and covered parking. ## Where the real spread shows up: location Submarket matters as much as class. Among 4 & 5 Star properties, Northside runs $0.38 per square foot and Hopewell County $0.29, while Chesterfield County runs just $0.15 — less than half. Among 3-Star properties, Petersburg/Colonial Heights and Prince George County both run $0.25, while Chesterfield County again sits at the low end around $0.16. If you're budgeting off a citywide average instead of your specific submarket, you could be off by 50% or more in either direction. ## What this means for your NOI Insurance is baked into total operating expenses, and Richmond's 4 & 5 Star total operating costs (including management, payroll, utilities, maintenance, taxes, and insurance) run around $8.77 per square foot annually — with Northside topping out at $10.32 and Chesterfield County running as low as $5.94. That's not a rounding error; on a 100,000-square-foot property, it's a swing of over $400,000 a year in total operating costs, which flows straight through to your NOI and, ultimately, your valuation at sale. ## What to actually do with this Before you assume a market-average insurance number in your underwriting or your listing pro forma, pull your actual policy renewal and compare it against the submarket-specific figures above — not the citywide average. Buyers underwriting your deal will do the same comparison, and if your insurance line item looks out of step with your specific submarket, it's one of the first things they'll flag in diligence. ## The takeaway Insurance costs in Richmond aren't a single number — they're a function of your building's class and your specific submarket, and the spread between the cheapest and most expensive corners of the market is wide enough to move your valuation by six figures. ## What to bring me If you want a clear read on whether your insurance line item is in line with comparable properties in your submarket, send me your current policy declarations page and your operating statement. I'll tell you where you actually stand. #RichmondMultifamily #VirginiaCommercialRealEstate #ApartmentInvesting

Key 2024 CRE trends include hybrid work models, e-commerce growth, sustainability, and tech integration. Adapt your investments to align with these changes.