925,927 Manhattan St, Reno - Offering Summary

MANHATTAN ST 9-PLEX CONDOS FOR SALE 925, 927 MANHATTAN ST, RENO, NV 89512

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Trevor Richardson, Commercial AgentMultifamily Specialist

EMAIL [email protected] 775.850.3031CELL 775.233.0754

Natalie Richardson, RealtorResidential Specialist

EMAIL [email protected] 775.850.3031CELL 775.233.0754

OFFERING SUMMARY

FINANCIAL ANALYSIS / MARKET RENT RATES

PROPERTY PHOTOS

TABLE OF CONTENTS

SMALL MULTIFAMILYSmall multifamily properties are commercial investment properties ranging from a duplex on up to 10 units. In the Reno/Sparks metro they have both commercial and residential aspects that require professionals from both fields to maximize their potential and provide a higher quality service for buyers and sellers of these properties.

1MANHATTAN ST 9-PLEX CONDOS FOR SALE 925, 927 MANHATTAN ST, RENO, NV 89512

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LOCATION

REGIONAL INFO / DEMOGRAPHICS

Property Description Offering

Asking Price $650,000

Rentable SF 6,915

Parking On Site Parking/UnitBR/BA 1 - 2 BEDROOMS / 1 &½ BATHROOMS

Current Rents Under Market

Location East Reno

OFFERING HIGHLIGHTS

Units 9 Condo Units

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Cap Rate/Proforma Cap Rate 5.5% / 7.9%

925, 927 MANHATTAN ST Located near the heart of the Reno/Sparks metro this investment opportunity offers plenty of flexibility for the new owner. Each unit has been individually parceled which allows the owner to use the property as a traditional multifamily or sell units individually.

The current owner has been self managing the property and has maintained the units very well over the years. Each unit features upstair bedrooms and a downstair living and kitchen that includes a ½ bathroom. Bedrooms feature vaulted ceilings and a hookup for laundry machines which are a couple of unique features that separates these units from similar inventory. In addition, each unit comes with on site parking and a fenced backyard. With the robust Reno apartment market there is plenty of opportunity for the next owner to increase rents and secure 1-year leases to maximize the potential of this investment property for years to come.

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Lease Terms 6 mo./M-T-M

OVERHEAD VIEW


Offering Summary

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PAGE 1 925, 927 Manhattan St

Property Unit MixOffering Price $650,000 Unit Type BR/BA Building # # Units SF Rent Current Rent Proforma

$/SF $94 Condo 1/1 &1/2 A 1 702 $500 $650

$/UNIT $72,222 Condo 1/1 &1/2 A 1 702 $500 $650

Address 925, 927 Manhattan St Condo 1/1 &1/2 A 1 702 $495 $650

City Reno Condo 1/1 &1/2 A 1 702 $500 $650

State NV Condo 1/1 &1/2 A 1 702 $500 $650

Zip 89512 Condo 1/1 &1/2 A 1 702 $500 $650

Property Name Manhattan St 9-Plex Condos Condo 2/1 &1/2 B 1 901 $700 $850

Property Type Multifamily Condo 2/1 &1/2 B 1 901 $700 $850

Zoning MF14 Condo 2/1 &1/2 B 1 901 $715 $850

Assessor's Parcel # 008-451-10

# Units 9

# Buildings 2

Rentable SF 6,915

Lot Size (AC) 0.35

Status On Market


Financial Analysis Cash Flow Summary

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Acquisition Assumptions Income & Expenses - Page 3 Proforma - Page 4Listing Price $650,000 Income $ % /Mo Income $ % /Mo

$/Unit $72,222 GRI $61,320 $5,110 GRI $77,400 $6,450

Vacancy (1,839.60) -3% (153) Vacancy (2,322.00) -3% (194)

Other Income $0 $0 Other Income $0 $0

Net Income $59,480 $4,957 Net Income $75,078 $6,257

Expenses Expenses

Total (23,602.00) -39.68% (1,967) Total (23,602.00) -31.44% (1,967)

Net Operating Income Net Operating Income

Total $35,878 $2,990 Total $51,476 $4,290

CAP RATE @ ASKING PRICE PROFORMA CAP RATE @ ASKING PRICE

LISTING PRICE $650,000 5.52% 7.92%


Financial Analysis Actual

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Annual Expenses 2015 Property IncomeExpense Cost % GI Unit Type Product Type Building # # Units SF Current Rent

Taxes $5,268 8.59% Condo 1/1 &1/2 A 1 702 $500

Insurance $2,176 3.55% Condo 1/1 &1/2 A 1 702 $500

Utilities $7,858 12.81% Condo 1/1 &1/2 A 1 702 $495

Maintenance* $8,300 13.54% Condo 1/1 &1/2 A 1 702 $500

Condo 1/1 &1/2 A 1 702 $500

Condo 1/1 &1/2 A 1 702 $500

Condo 1/1 &1/2 B 1 901 $700

Condo 1/1 &1/2 B 1 901 $700

0.00% Condo 1/1 &1/2 B 1 901 $715

0.00%

0.00%

0.00%

Total (23,602.00) -38.49% Gross Rental Income (GRI) $61,320 Other Income

*Annual Assumptions Vacancy 3.0% (1,839.60) Laundry $0

Net Operating Income (NOI) Net Rental Income $59,480 $0

$35,878


Financial Analysis Proforma

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Annual Expenses Proforma Property IncomeExpense Cost % GI Unit Type Product Type Building # # Units SF Proforma Rent

Taxes $5,268 6.81% Condo 1/1 &1/2 A 1 702 $650

Insurance $2,176 2.81% Condo 1/1 &1/2 A 1 702 $650

Utilities $7,858 10.15% Condo 1/1 &1/2 A 1 702 $650

Maintenance* $8,300 10.72% Condo 1/1 &1/2 A 1 702 $650

Condo 1/1 &1/2 A 1 702 $650

Condo 1/1 &1/2 A 1 702 $650

Condo 1/1 &1/2 B 1 901 $850

Condo 1/1 &1/2 B 1 901 $850

0.00% Condo 1/1 &1/2 B 1 901 $850

0.00%

0.00%

0.00%

Total (23,602.00) -30.49% Gross Rental Income (GRI) $77,400 Other Income

Vacancy 3.0% (2,322.00) Laundry $0

Net Operating Income (NOI) Net Rental Income $75,078 $0

$51,476


Rent Roll

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Unit # Unit BR Unit BA Unit SF Current Rent Rent/SF Lease St. Lease End Unit Type

925A 2 1 & 1/2 702 500 0.71 5/1/2016 10/31/2016 Condo

925B 2 1 & 1/2 702 500 0.71 11/28/2015 5/31/2016 Condo

925C 2 1 & 1/2 702 495 0.71 12/1/2014 5/31/2015 Condo

927A 1 1 & 1/2 702 500 0.71 5/1/15 10/31/15 Condo

927B 1 1 & 1/2 702 500 0.71 8/22/16 2/28/17 Condo

927C 1 1 & 1/2 702 500 0.71 3/12/16 10/31/16 Condo

927D 1 1 & 1/2 901 700 0.78 5/1/15 10/31/15 Condo

927E 1 1 & 1/2 901 700 0.78 9/13/14 3/31/15 Condo

927F 1 1 & 1/2 901 715 0.79 7/1/14 Condo

Reno/Sparks Apartment Rental Rates


MONTHLY RENTAL RATE REPORTThe following rental data consists of weighted averages for market rents of 24,868 Reno/Sparks apartments, 5+ unit complexes only.

*Data provided by Costar

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925 MANHATTAN ST

927 MANHATTAN ST

Apartment Rates Trends


QUARTERLY APARTMENT REPORTThe following rental data consists of weighted averages for market rents of 20,658 Reno/Sparks apartments, 80+ unit complexes only. *Data provided by Johnson Perkins Griffin Apartment Survey

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Photos Exterior

927 - UTILITIES/PARKING PARKING FOR EACH UNIT

925 MANHATTAN - BACkYARD925 MANHATTAN - STREET VIEW

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MANHATTAN ST 9-PLEX CONDOS FOR SALE 925, 927 MANHATTAN ST, RENO, NV 89512 10

Photos Interior (925)

925 MANHATTAN - LIVING/KITCHEN

925 MANHATTAN - KITCHEN 925 MANHATTAN - ½ BATH

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925 MANHATTAN - ½ BATH

925 MANHATTAN UPSTAIRS - BEDROOM W/ VAULTED CEILINGS

925 MANHATTAN UPSTAIRS - FULL BATHROOM


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927 MANHATTAN - LIVING/KITCHEN 927 MANHATTAN - KITCHEN

927 MANHATTAN UPSTAIRS - BEDROOM927 MANHATTAN - ½ BATH

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927 MANHATTAN UPSTAIRS - FULL BA


Location Assessor Map

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925 MANHATTAN ST

927 MANHATTAN ST

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Location Regional Info Map

SOMERSETT GOLF COMMUNITY

UNIVERSITY OF NEVADA, RENO

LAKE TAHOE

TAHOE RENO INDUSTRIAL CENTER (TRIC)

TESLA MOTORS GIGAFACTORY

SWITCH SUPERNAP

APPLE DATA CENTER

DOWNTOWN RENO

RENO TAHOE INTERNATIONAL AIRPORT

CALI

FORN

IA

NW RENO

TRUCKEE, CA

SPARKS

MIDTOWN RENO

WINGFIELD SPRINGSNORTH VALLEYS

SOUTH RENO

Manhattan St

INTERSTATE 80

INTERSTATE 580

SE CONNECTOR (UNDER CONST.)

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Location Neighborhood Info Map

MANHATTAN ST

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I-80

I-80

UNIVERSITY OF NEVADA, RENO

E 9TH ST

SUTRO ST

I-580

SUTRO ST

DOWNTOWN RENO

FRED TRANER MIDDLE SCHOOL

LIVESTOCK EVENTS CENTER

WELLS AVE

WELLS AVE


Downtown Reno Redevelopment

516 RYLAND ST

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Market Info Reno/Sparks

RENO, NEVADAThe Greater Reno/Sparks area is starting to see and feel the unprecedented growth in the area thanks to many key factors. Near the end of 2014, Tesla Motors named Nevada the official site for the Tesla Gigafactory, a massive factory to produce batteries for it’s electric vehicles. According to the Governor’s Office of Economic Development, over 22,715 jobs could be created in Northern Nevada thanks to Tesla, as well as a substantial increase in construction and housing activity. Governor Sandoval, in his State of the State speech in January 2015, stated “Nevada’s job growth is third strongest in the country, we have cut our unemployment rate in half, and we have the second fastest growing population in the nation.”

The Economic Development Authority, or EDAWN, is projecting an increase of more than 51,000 primary and secondary jobs from 2015 to 2019 for the region. In 2014, EDAWN assisted 34 companies in moving or expanding into Nevada, which included 13 headquarters. Prior to that, the record for head-quarters was six. The 34 companies accounted for 4,179 new jobs for the area as well. EDAWN kicked off 2015 with 10 prospects visiting in just January alone. EDAWN credited high profile projects such as the Apple data center, Tesla Motors’ gigafactory and the Switch SUPERNAP data center for increasing interest in the region from outside companies and expects to see nearly 100 other announcements before end of 2015.

DOWNTOWN RENO

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Market Info Major Regional Developments

TESLA GIGAFACTORYCosting $5 billion and projected to employ 6,500 people once up and running, Tesla Motors' Gigafactory at the Tahoe Reno Industrial Center is considered one of the biggest wins in economic development history. The gigafactory is the linchpin in Tesla's plans for expansion, manufacturing an estimated 500,000 battery packs for the company's electric cars each year when operational. It will also allow the company to eventually scale up its Tesla Energy line of storage batteries for homes and businesses. Just as important as its raw numbers, however, is its impact on Reno's reputation as a place to do business for companies looking to expand. - rgj.com

Tesla’s mission is to accelerate the world’s transition to sustainable transportation. To achieve that goal, we must produce electric vehicles in sufficient volume to force change in the automobile industry. With a planned production rate of 500,000 cars per year in the latter half of this decade, Tesla alone will require today’s entire worldwide production of lithium ion batteries. The Tesla Gigafactory was born of necessity and will supply enough batteries to support our projected vehicle demand. Tesla broke ground on the Gigafactory in June 2014 outside Sparks, Nevada, and we expect to begin cell production in 2017. By 2020, the Gigafactory will reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013. - teslamotors.com/gigafactory

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Demographics Overview

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE

POPULATION

2016 Estimated population 19,805 126,138 235,263

2021 projected population 20,837 132,391 246,705

HOUSEHOLDS

2016 Estimated households 9,280 51,864 92,798

2021 projected households 9,835 54,246 96,875

2016 Est. Median HH Income $25,468 $35,072 $40,282

2016 Est. Average HH Income $39,400 $49,270 $58,092

2016 Est. Per Capita HH Income $21,361 $21,449 $23,662

Source: U.S. Census Bureau, Census 2010 Data. Esri forecasts for 2015 and 2020.

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Why Northern Nevada?

The Greater Reno/Sparks area is starting to see and feel the unprecedented growth in the area thanks to many key factors. Thanks to Tesla’s new Gigafactory, an economic and technological revolution is on its way, providing 6,500 new jobs at peak production. Currently, Reno has experienced a 14.7% growth in manufacturing employment over the past five years.

Nevada's unemployment rate has gone down for five years straight after peaking at 13.1 percent in November, 2010, according to a Nevada Department of Employment report. The Reno/Sparks area currently sits at a 5.5 percent unemployment rate as of July, 2016.

The Economic Development Authority, or EDAWN, projects 50,000 new jobs will open in Reno-Sparks in the next five years, meaning 9,000 homes need to be built each year leading up to 2020. Governor Sandoval, in his State of the State speech in January 2015, stated “Nevada’s job growth is third strongest in the country, we have cut our unemployment rate in half, and we have the second fastest growing population in the nation.”

WHY MOVE TO THE RENO/SPARKS AREA? According to the Whitney Group, a leader for over 30 years in providing market research and feasibility analysis in the western United States , it’s believed that the housing demand and valuations are on the verge of accelerating over the near term to perhaps historical heights never before experienced in the greater Reno region.

It is also being noted that Nevada state taxable sales are near an all-time high thanks to the strong economic recovery & visitors, according to the Nevada Department of Taxation. Specifically, Washoe County and surrounding areas are seeing the highest taxable sales since before 2006. Washoe County alone experienced a 15-20% increase of visitors to the area in February 2015 as opposed to the same time the previous years. With the area's proximity to California, Lake Tahoe and all the Sierras have to offer, the Greater Reno-Sparks area is proving to be one of the nation’s top area’s to live, work, and play.

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According to Livability.com’s “2016 Top 100 Best Places to live” selected from over 2,000 cities.

HOW DOES NEVADA STACK UP?

According to Chiefexecutive.net’s “2016 Top 50 Best Places to do business.”

Most Business-Friendly Tax Climate by the Tax Foundation for 2017.

The Kauffman Foundation Index ranks Nevada as #2 of 25 in “Highest Startup Activity in 2016” for Smaller States.

The Kauffman Foundation Index ranks Nevada as #8 of 25 in “Growth Entrepreneurship 2016” for Smaller States.

#47

#9

#5

#2

#8

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Labor Force

Greater Reno/Sparks/Tahoe has an existing labor force of over 220,000 with a close proximity to metros such as Sacramento and San Francisco, and the quality of life to attract top young professionals. Area industry and business leaders consistently give the regional labor pool top marks for productivity and quality.

Employers are able to connect with students at the University of Nevada, Reno, top-ranked in business, engineering and medicine, Truckee Meadows Community College, offering customized skills training, the Desert Research Institute and other higher education facilities in the region.

Recent economic changes have created huge opportunity for employers looking to relocate or expand. Greater Reno/Sparks/Tahoe has a readily available workforce of nearly 25,000 skilled in manufacturing, logistics, software development, business, administrative services and more.

RENO IS BUSINESS FRIENDLY EMPLOYMENT RATE AT RECORD HIGH

Six Years of consistent Employment Growth

Nevada has officially gained back all of the 190,100 jobs lost during the recession, raising employment levels to an all-time high of 1,301,300 jobs. After bottoming out at 1.1 million jobs in September of 2010, the Silver State has since made a healthy recovery and looks to continue this trend.

The trade/transportation/utilities sector has added 36,600 jobs; professional and business services has added 34,100; and health care added 25,000 jobs.

With approximately 70,000 fewer construction jobs than pre-recession, Nevada’s economy appears more stable with a much more diverse job market across nearly all industries.

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Education

The University of Nevada, Reno, plays an integral role with developing and maintaining a diverse and professional business economy in the Reno/Sparks/Tahoe area. Located just north of the downtown district, the UNR campus provides 145 undergraduate and 124 graduate programs for one of the more affordable universities in the area. Current students pay 80 percent less than the average Tier 1 Institution, making UNR one of the most affordable and high-quality universities in the West.

The College of Business in particular is one of the strongest assets for the university, offering degree programs ranging from accounting and business administration to information systems and gaming management. The College of Business even offers minor degrees for cyber security and entrepreneurship, both vital assets for professional labor in today’s economy.

Beyond providing a high quality and affordable education for its students, UNR is dedicated to building a genuine sense of community in Northern Nevada. The College of Business houses the Ozmen Center for Entrepreneurship and the Nevada Small Business Development Center, giving students, faculty and local aspiring business professionals the opportunity to collaborate on entrepreneurial ideas or endeavors.

UNIVERSITY OF NEVADA, RENOThe university recently opened the InNEVation Center, Powered by Switch, in Fall 2015 to serve as a center for collaboration between local technology developers, entrepreneurs and researchers. The InNEVation Center emphasizes drone research, which has contributed to Northern Nevada’s rapidly growing reputation as a hotbed for drone research.

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Housing Summary

The Months of Inventory for affordable housing in the $300,000 and below range remains low at 42 Days of inventory, according to data supplied by the Northern Nevada Multiple Listing Service as of August 29, 2016.

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925,927 Manhattan St, Reno - Offering Summary

Real Estate

Transcript of 925,927 Manhattan St, Reno - Offering Summary