603 14TH ST S, SAINT CLOUD, MN 56301€¦ · and Saint Cloud State University. Saint Cloud State...

Presented By:

PHIL REESNESVice [email protected]

Michel Commercial Real Estate International, Inc. | michelcommercialre.com

603 14TH ST S, SAINT CLOUD, MN 56301FOR SALE | MULTIFAMILY INVESTMENT

For Sale

CONFIDENTIALITY & DISCLAIMER

PROPERTY INFORMATION3

LOCATION INFORMATION8

FINANCIAL ANALYSIS12

ADVISOR BIOS16

A l l m a t e r i a l s a n d i n f o r m a t i o n r e c e i v e d o r d e r i v e d f r o m M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s ,a f fi l i a t e s a n d / o r a ny t h i r d p a r t y s o u r c e s a r e p r o v i d e d w i t h o u t r e p r e s e n t a t i o n o r w a r ra n t y a s t o c o m p l e t e n e s s , v e ra c i t y, o r a c c u ra c y, c o n d i t i o n o f t h ep r o p e r t y, c o m p l i a n c e o r l a c k o f c o m p l i a n c e w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s , d e v e l o p a b i l i t y o r s u i t a b i l i t y, fi n a n c i a l p e r f o r m a n c e o f t h ep r o p e r t y, p r o j e c t e d fi n a n c i a l p e r f o r m a n c e o f t h e p r o p e r t y f o r a ny p a r t y ’ s i n t e n d e d u s e o r a ny a n d a l l o t h e r m a t t e r s .

N e i t h e r M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . i t s d i r e c t o r s , o f fi c e r s , a g e n t s , a d v i s o r s , o r a f fi l i a t e s m a ke s a ny r e p r e s e n t a t i o n o r w a r ra n t y,ex p r e s s o r i m p l i e d , a s t o a c c u ra c y o r c o m p l e t e n e s s o f t h e a ny m a t e r i a l s o r i n f o r m a t i o n p r o v i d e d , d e r i v e d , o r r e c e i v e d . M a t e r i a l s a n d i n f o r m a t i o n f r o ma ny s o u r c e , w h e t h e r w r i t t e n o r v e r b a l , t h a t m ay b e f u r n i s h e d f o r r e v i e w a r e n o t a s u b s t i t u t e f o r a p a r t y ’ s a c t i v e c o n d u c t o f i t s o w n d u e d i l i g e n c e t od e t e r m i n e t h e s e a n d o t h e r m a t t e r s o f s i g n i fi c a n c e t o s u c h p a r t y. M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . w i l l n o t i nv e s t i g a t e o r v e r i f y a nys u c h m a t t e r s o r c o n d u c t d u e d i l i g e n c e f o r a p a r t y u n l e s s o t h e r w i s e a g r e e d i n w r i t i n g .

E AC H PA RT Y S H A L L C O N D U C T I T S O W N I N D E P E N D E N T I N V E S T I G AT I O N A N D D U E D I L I G E N C E .

A ny p a r t y c o n t e m p l a t i n g o r u n d e r c o n t ra c t o r i n e s c r o w f o r a t ra n s a c t i o n i s u r g e d t o v e r i f y a l l i n f o r m a t i o n a n d t o c o n d u c t t h e i r o w n i n s p e c t i o n s a n di nv e s t i g a t i o n s i n c l u d i n g t h r o u g h a p p r o p r i a t e t h i r d p a r t y i n d e p e n d e n t p r o f e s s i o n a l s s e l e c t e d b y s u c h p a r t y. A l l fi n a n c i a l d a t a s h o u l d b e v e r i fi e d b y t h ep a r t y i n c l u d i n g b y o b t a i n i n g a n d r e a d i n g a p p l i c a b l e d o c u m e n t s a n d r e p o r t s a n d c o n s u l t i n g a p p r o p r i a t e i n d e p e n d e n t p r o f e s s i o n a l s . M i c h e l C o m m e r c i a lR e a l E s t a t e I n t e r n a t i o n a l , I n c . m a ke s n o w a r ra n t i e s a n d / o r r e p r e s e n t a t i o n s r e g a r d i n g t h e v e ra c i t y, c o m p l e t e n e s s , o r r e l e v a n c e o f a ny fi n a n c i a l d a t a o ra s s u m p t i o n s . M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l , I n c . d o e s n o t s e r v e a s a fi n a n c i a l a d v i s o r t o a ny p a r t y r e g a r d i n g a ny p r o p o s e d t ra n s a c t i o n .A l l d a t a a n d a s s u m p t i o n s r e g a r d i n g fi n a n c i a l p e r f o r m a n c e , i n c l u d i n g t h a t u s e d f o r fi n a n c i a l m o d e l i n g p u r p o s e s , m ay d i f f e r f r o m a c t u a l d a t a o rp e r f o r m a n c e . A ny e s t i m a t e s o f m a r ke t r e n t s a n d / o r p r o j e c t e d r e n t s t h a t m ay b e p r o v i d e d t o a p a r t y d o n o t n e c e s s a r i l y m e a n t h a t r e n t s c a n b ee s t a b l i s h e d a t o r i n c r e a s e d t o t h a t l e v e l . Pa r t i e s m u s t e v a l u a t e a ny a p p l i c a b l e c o n t ra c t u a l a n d g o v e r n m e n t a l l i m i t a t i o n s a s w e l l a s m a r ke tc o n d i t i o n s ,v a c a n c y f a c t o r s a n d o t h e r i s s u e s i n o r d e r t o d e t e r m i n e r e n t s f r o m o r f o r t h e p r o p e r t y.

Le g a l q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a n a t t o r n e y. Ta x q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a c e r t i fi e d p u b l i c a c c o u n t a n t o rt a x a t t o r n e y. T i t l e q u e s t i o n s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a t i t l e o f fi c e r o r a t t o r n e y. Q u e s t i o n s r e g a r d i n g t h e c o n d i t i o n o f t h e p r o p e r t y a n dw h e t h e r t h e p r o p e r t y c o m p l i e s w i t h a p p l i c a b l e g o v e r n m e n t a l r e q u i r e m e n t s s h o u l d b e d i s c u s s e d b y t h e p a r t y w i t h a p p r o p r i a t e e n g i n e e r s , a r c h i t e c t s ,c o n t ra c t o r s , o t h e r c o n s u l t a n t s a n d g o v e r n m e n t a l a g e n c i e s . A l l p r o p e r t i e s a n d s e r v i c e s a r e m a r ke t e d b y M i c h e l C o m m e r c i a l R e a l E s t a t e I n t e r n a t i o n a l ,I n c . i n c o m p l i a n c e w i t h a l l a p p l i c a b l e f a i r h o u s i n g a n d e q u a l o p p o r t u n i t y l a w s .


PROPERTY INFORMATION


Presented By:


SECTION 1


OFFERING SUMMARYSale Price: $570,000

Number Of Units: 4

Price Per Unit: $142,500

Cap Rate: 6.4%

NOI: $36,314

Lot Size: 0.33 Acres

Year Built: 1971

Building Size: 4,092 SF

Zoning: R3 Lodging House: And

Fraternity/Sorority House

Residential District

PROPERTY OVERVIEWThe apartment building at 603 14th St S in St. Cloud is comprised of 4 units. Each unit has 3bedrooms and 1 bathroom. There is off-street parking for the tenants. There is also in-unitwashers and dryers for the convenience of the tenants. Tenants pay their own heat andelectric. Two of the units are completely new due to a fire in one of the units. The roof andexterior of the building are 2 years old. The current owner never intended to sell hisproperties. Only a recent opportunity for the owner has prompted him to make this propertyavailable for purchase. The rents are low and there is a significant opportunity to raise therents beyond the current listed market rents on the rent roll.

For Sale

603 14TH ST S, SAINT CLOUD, MN 56301

PROPERTY INFORMATION | Executive Summary


LOCATION OVERVIEW

The apartments at 603 14th St S are located in Stearns County in the City ofSaint Cloud. The City of Saint Cloud is located in the geographical center ofMinnesota approximately 60 miles northwest of Minneapolis. Saint Cloud isthe political, cultural, commercial and manufacturing center for all ofCentral Minnesota. A very sophisticated transportation network makes theSaint Cloud area readily accessible to all parts of the region.A stabilizing force in the community is the fact that the Saint Cloud area ishome to four major institutions of higher learning including Saint CloudTechnical College, The College of Saint Benedict, Saint John's Universityand Saint Cloud State University. Saint Cloud State University is the largestof these with over 16,000 students enrolled.The greater Saint Cloud Tri-County area includes Stearns, Sherburne andBenton County. The population of the Saint Cloud MSA is approximately189,000 and is expected to grow to about 231,000 by 2030. The populationof Sherburne County grew 37% in the last 10 years and is one of the fastestgrowing counties in the state. The population of Stearns County grew 13%in the last 10 years and Benton County grew 12.3% in the last 10 years.The Saint Cloud Area is somewhat recession proof because of its diverseeconomy. The area boasts a mix of manufacturers, agricultural relatedentities, a growing health care industry, emerging professional services, athriving printing industry, several large public sector employers and a veryactive retail component. The Saint Cloud Area is the retail hub of CentralMinnesota with several expansive malls and retail centers. The Saint Cloudarea ranks third in the state, behind only Minneapolis and Saint Paul in retailsales.The business community is continuing to grow at a rapid pace. TheTri-County labor force is expected to expand by nearly 40% between 1990and 2020 as compared to only 21% statewide. As the population and laborforce continue to grow so will the demand for rental housing.

For Sale


PROPERTY INFORMATION | Property Description


SALE HIGHLIGHTS

• Value-add opportunity

• Built in 1971

• Two units completely renovated due to fire

• Roof new 2 years ago

• Exterior new 2 years ago

• In-unit washers and dryers

• Off-street parking

• Spacious apartments

• All 3 bedroom 1 bathroom units

• Near St. Cloud State University

For Sale


PROPERTY INFORMATION | Complete Highlights


For Sale


PROPERTY INFORMATION | Additional Photos

LOCATION INFORMATION


Presented By:


SECTION 2


603 14th St S

For Sale


LOCATION INFORMATION | Regional Map


For Sale


LOCATION INFORMATION | Location Maps


603 14th St S

For Sale


LOCATION INFORMATION | Aerial Map

FINANCIAL ANALYSIS


Presented By:


SECTION 3


INVESTMENT OVERVIEW PROFORMA

Price $570,000

Price per Unit $142,500

GRM 11.0

CAP Rate 6.4%

Cash-on-Cash Return (yr 1) 6.48 %

Interest Rate 4.0 %

Total Return (yr 1) $19,398

Debt Coverage Ratio 1.34

OPERATING DATA PROFORMA

Gross Scheduled Income $51,732

Total Scheduled Income $51,732

Vacancy Cost $2,587

Gross Income $49,145

Operating Expenses $12,831

Net Operating Income $36,314

Pre-Tax Cash Flow $9,236

FINANCING DATA PROFORMA

Down Payment $142,500

Loan Amount $427,500

Debt Service $27,078

Debt Service Monthly $2,256

Principal Reduction (yr 1) $10,162

For Sale


FINANCIAL ANALYSIS | Financial Summary


INCOME SUMMARY PROFORMA

Projected Income $51,732LESS: Estimated Apartment Vacancy (5%) -$2,587Gross Income $49,145

EXPENSE SUMMARY PROFORMA

Caretaker ($100 / month est.) $1,200Rubbish (2019) $880Snow Removal (est.) $500General Repairs (8% est.) $3,932Electricity / Gas / Hot Water (2019) $505Water / Sewer (2019) $766Real Estate Taxes (2020) $3,038Insurance (2019) $1,783Rental License (2019) $227Gross Expenses $12,831

Net Operating Income $36,314

For Sale


FINANCIAL ANALYSIS | Income & Expenses


UNITNUMBER

UNITBED

UNITBATH

CURRENTRENT

MARKETRENT

1 3 1 $1,036 $1,100

2 3 1 $1,100 $1,200

3 3 1 $1,075 $1,200

4 3 1 $1,100 $1,100

Totals/Averages $4,311 $4,600

For Sale


FINANCIAL ANALYSIS | Rent Roll

ADVISOR BIOS


Presented By:


SECTION 4


12930 32nd Avenue NorthMinneapolis, MN 55441T [email protected]

PROFESSIONAL BACKGROUND

Phil joined Michel Commercial Real Estate Intl. Inc. in 2002. Specializing in multifamilyhousing, Phil is a valued partner to both buyers and sellers in the acquisition anddisposition of their investment properties, citing his knowledge of the market, accurateproperty valuations, quality contacts, and trusted leadership from initial contact tosuccessful closing. Phil and his wife Lisa have three children and live in the northwesternsuburbs of Minneapolis. Phil enjoys spending time with his family, traveling, and playinggolf.

Founded in 1987, Michel Commercial Real Estate Intl. Inc. focuses solely on sellingmultifamily housing. The brokerage company represents both private and institutionalgroups, including local owners and national investors. Michel Commercial Real Estatesuccessfully trades 1,500+ units of multifamily housing a year in the Midwest andspecializes in all types of apartments, including market rate, affordable, and studenthousing. The list of apartment projects sold ranges from 10 to 500 units.

PHIL REESNES

Vice President

For Sale


ADVISOR BIOS | Advisor Bio & Contact 1

603 14TH ST S, SAINT CLOUD, MN 56301€¦ · and Saint Cloud State University. Saint Cloud State...

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