Birmingham, Huntsville & Montgomery Metro Areas€¦ · Birmingham, Huntsville & Montgomery Metro...

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FOR SALE | SFR PORTFOLIO ALABAMA 66 SFR PORTFOLIO Birmingham, Huntsville & Montgomery Metro Areas Dennis Fernandez Advisor 214.607.8346 [email protected] Paul Yazbeck Executive Director 972.916.9045 [email protected] Mark Allen Advisor 972.865.6328 [email protected] Todd Franks, CCIM Managing Director 972.916.9397 [email protected]

Transcript of Birmingham, Huntsville & Montgomery Metro Areas€¦ · Birmingham, Huntsville & Montgomery Metro...

Page 1: Birmingham, Huntsville & Montgomery Metro Areas€¦ · Birmingham, Huntsville & Montgomery Metro Areas . 1 PROPERTY OVERVIEW . All SVN® Offices Independently Owned and Operated

FOR SALE | SFR PORTFOLIO

ALABAMA 66 SFR PORTFOLIO Birmingham, Huntsville & Montgomery Metro Areas

Dennis Fernandez Advisor

214.607.8346 [email protected]

Paul Yazbeck Executive Director

972.916.9045 [email protected]

Mark Allen Advisor

972.865.6328 [email protected]

Todd Franks, CCIM Managing Director

972.916.9397 [email protected]

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Executive Summary

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The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstance, be photocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this brochure, and no other person is authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. The information contained herein is subject to change without notice and the recipient of those materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase Agreement shall bind the property and each prospective purchaser proceeds at its own risk.

DISCLAIMER ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY AL

All SVN® Offices Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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TABLE OF CONTENTS Property Overview 5-12

Financial Overview

14-20

Location Overview

22-28

Demographics

30-35

About SVN®

37-39

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FOR SALE | SFR PORTFOLIO

ALABAMA 66 SFR PORTFOLIO Birmingham, Huntsville & Montgomery Metro Areas

1 PROPERTY OVERVIEW

All SVN® Offices Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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Executive Summary

SECTION 1 | PROPERTY OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

All SVN® Offices Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

PROPERTY OVERVIEW

PROPERTY HIGHLIGHTS

SVN | Investment Sales Group is pleased to announce the exclusive listing for this 66 home portfolio located in three of the largest MSAs in Alabama; Birmingham, Montgomery, and Huntsville. Alabama boasts one of the top five highest potential single family returns in the nation according to Realtytrac.com at 78.4%. Alabama is projected to grow at a moderate 3 to 4 percent per year with the majority of growth in Huntsville. According to the Department of Numbers, Alabama rents are up 2.1% over the last year, while vacancy has decreased 0.65%. As a secondary real estate market, Alabama is known as a stable, high yield opportunity, which has attracted foreign and domestic investors in the current market cycle. The portfolio represents a strong bedroom and bathroom mix consisting of 66 total homes with an average year of construction of 1968 - All homes were recently acquired and renovated to 2017 standards. At a list price of $6,300,000 for the portfolio or $95,455 per home, this portfolio provides an opportunity to purchase a stable opportunity below replacement costs.

• Opportunity to diversity portfolio in high performing secondary markets • Recent on-going renovations focused heavily on capital expenditures to ensure low

maintenance and rental longevity • Upon stabilization highly financeable portfolio with DSC estimated between 1.60 –

1.98; Cash flowing assets with 11%+ cash-on-cash returns in Year 1 • SFR portfolios generally outperform local multifamily of similar size on a cap rate

basis (average class B & C multifamily cap rates in Alabama MSAs at 6-7.5%, SFR’s at 8%+)

PROPERTY SUMMARY

SALE PRICE: $6,300,000

AVERAGE YOC: 1968

NUMBER OF UNITS: 66

PRICE/UNIT: $95,455

EFFECTIVE AVG. RENT/UNIT/SF: $935 / $0.60

MARKET AVG. RENT/UNIT/SF: $985 / $0.63

TOTAL SIZE (AVG. PROPERTY): 1567 SF

PRICE/SF: $60.92

STABILIZED GROSS YIELD: 12.4%

STABILIZED NOI: $542,549

STABILIZED CAP RATE: 8.6%

CASH-ON-CASH/8-YEAR IRR: 11.86% / 20.75%

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Additional Exterior Photos

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SECTION 1 | PROPERTY OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Living Room Photos

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SECTION 1 | PROPERTY OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Kitchen Photos

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SECTION 1 | PROPERTY OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Dining Photos

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Bedroom Photos

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Bathroom Photos

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SECTION 1 | PROPERTY OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Benefits of SFR Portfolios

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As a secondary real estate market, Alabama boasts three major MSAs (Birmingham, Montgomery, and Huntsville) that enable opportunity for strong cash flowing real estate assets, while providing a stable economy during various market cycle positions. Single Family Rental portfolios provide several advantages over apartment investments: • Multiple exit strategies: provides a hedge on the market

When residential values are higher, the owner can exit on an individual sales basis If home values decrease, rental homes maintain their value with rental income Owners can sell the property to the tenant offering “Seller Financing” at above market interest rates and sell the loans

on the open market • Rentals receive higher security deposits which protects the landlord against damage by the tenant • Tenants are responsible for their own utilities which gives the landlord protection against spikes to expenses due to plumbing

leaks and/or increases in utility costs • Homes are spread over a larger area which spreads the risk of value swings in any one submarket • Tenants tend to be more stable with less turnover

SECTION 1 | PROPERTY OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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2 FINANCIAL OVERVIEW

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FOR SALE | SFR PORTFOLIO

ALABAMA 66 SFR PORTFOLIO Birmingham, Huntsville & Montgomery Metro Areas

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Unit Mix

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SECTION 2 | FINANCIAL OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Rent Roll

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SECTION 2 | FINANCIAL OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Rent Roll

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SECTION 2 | FINANCIAL OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Rent Roll

All SVN® Offices Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Rent Roll

All SVN® Offices Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

SECTION 2 | FINANCIAL OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Financial Analysis

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SECTION 2 | FINANCIAL OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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IRR Deferred

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3 LOCATION OVERVIEW

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FOR SALE | SFR PORTFOLIO

ALABAMA 66 SFR PORTFOLIO Birmingham, Huntsville & Montgomery Metro Areas

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Area Highlights

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SECTION 3 | LOCATION OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

57 of the Fortune 500 Companies maintain

operations in Huntsville including: General Electric, AT&T, Verizon, IBM, Boeing,

Wells Fargo, Target, Comcast, UPS, Cisco Systems, and

Lockheed Martin

As the state’s capital, Birmingham is the largest

city in Alabama.

Montgomery Public Schools (MPS) is a highly acclaimed district with 3 high schools

ranked among the best schools in the nation by

Newsweek and U.S. News and World Report and the #1 magnet school in the nation

Huntsville is ranked the #1 best affordable city in the

U.S. according to Livability.com (2016)

Alabama ranks in the Top 5 States in the U.S. for the

production of cars and light trucks, with the automotive

sector employing 57,000 people statewide and

accounting for $9B in exports in 2016

The State of Alabama boasts several nationally

recognized universities including Samford University, University of Mobile, Auburn University, the University of

Alabama, and Troy University

Headquartered in

Birmingham, Buffalo Rock is the largest independent

single shareholder owned Pepsi Bottler in the U.S.; 3rd largest Sunkist; 6th largest Dr.

Pepper, and 10th largest Canada Dry

While the state is not home to any professional sports teams, the University of Alabama’s home football

games have a total statewide economic input of $24.8MM per game or

$173.3MM per season

Huntsville is home to NASA’s largest center, the Marshall Space Flight Center, which

developed the Saturn launch vehicles for the Apollo moon program and launched the 1st successful satellite (Explorer

One) into space

According to Niche.com, Birmingham, Huntsville, and Montgomery rank in the Top 40 Cities with the Lowest

Cost of Living in America for 2017, providing affordable

living for residents

Montgomery Regional Airport is the home base of the

Alabama Air National Guard 187th Fighter Wing and

provides daily commercial flights to Atlanta, Charlotte,

and Dallas-Fort Worth

Located in Huntsville, the Redstone Arsenal serves as the headquarters for the

United States Army Aviation and Missile Command

(AMCOM) which is responsible for maintaining Army missiles, helicopters,

and ground vehicles

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Portfolio Map – Birmingham Homes

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EMPLOYMENT (Select Employers)

- Alabama Theater - Barber Vintage Motorsports Museum - Birmingham Botanical Gardens - Birmingham Museum of Art - Birmingham Zoo - McWane Science Center - Railroad Park - Regions Field - Ruffner Mountain Park - Sloss Furnaces National Historic Landmark - Vulcan Park and Museum

Economic Drivers - Birmingham

- University of Alabama at Birmingham – 23,000 employees - Regions Financial Corporation – 6,000 employees - AT&T – 5,750 employees - St. Vincent’s Health System – 4,703 employees - Honda Manufacturing of Alabama – 4,500 employees - Baptist Health System – 4,000 employees - Alabama Power Company – 3,982 employees - Children’s Health System – 3,652 employees - Mercedes-Benz U.S. International – 3,500 employees - Blue Cross-Blue Shield of Alabama – 3,000 employees - BBVA Compass – 2,804 employees - Brookwood Medical Center – 2,600 employees - American Cast Iron Pipe Company – 2,400 employees - U.S. Steel-Fairfield Works – 2,400 employees - Trinity Medical Center – 1,879 employees - U.S. Social Security Administration – 1,800 employees - Birmingham Veterans Affairs Medical Center – 1,525 employees

ENTERTAINMENT

SECTION 3 | LOCATION OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Portfolio Map – Huntsville Homes

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SECTION 3 | LOCATION OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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ENTERTAINMENT

EMPLOYMENT (Select Employers)

- Big Spring Park - Bridge Street Town Center - Green Mountain Nature Trail - Harmony Park Safari - Huntsville Botanical Garden - Lowe Mill Arts & Entertainment - Monte Sano State Park - U.S. Space and Rocket Center - U.S. Veterans Memorial Museum - Von Braun Center Concert & Event Hall

Economic Drivers - Huntsville

- U.S. Army/Redstone Arsenal – 35,000 employees - NASA/Marshall Space Flight Center – 6,500 employees - Huntsville Hospital – 6,341 employees - The Boeing Company – 2,600 employees - Madison County Schools – 2,389 employees - Science Applications International Corporation – 2,277 employees - City of Huntsville – 2,206 employees - Camber Corporation – 2,125 employees - University of Alabama Huntsville – 1,660 employees - ADTRAN, Inc. – 1,549 employees - Technicolor – 1,450 employees - PAR – 1,350 employees - Madison County Commission – 1,242 employees - Alabama A&M University – 1,207 employees - Northrop Grumman Corporation – 1,200 employees - Verizon Wireless – 1,200 employees - Toyota Motor Manufacturing Alabama – 1,150 employees - Lockheed Martin Corporation – 1,084 employees

SECTION 3 | LOCATION OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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Portfolio Map – Montgomery Homes

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ENTERTAINMENT

EMPLOYMENT

- Alabama State Capitol Building - Civil Rights Memorial Center - Dexter Avenue King Memorial Baptist Church - Dexter Parsonage Museum - First White House of the Confederacy - Montgomery City Planetarium - Montgomery Museum of Fine Arts - Montgomery Zoo - Riverfront Park - Rosa Parks Library

Economic Drivers - Montgomery

- Maxwell Gunter Air Force Base – 12,280 employees - State of Alabama – 11,639 employees - Montgomery Public Schools – 4,524 employees - Baptist Health – 4,300 employees - Hyundai Motor Manufacturing – 3,100 employees - ALFA Insurance Companies – 2,568 employees - City of Montgomery – 2,500 employees - MOBIS Alabama – 2,500 employees - Jackson Hospital & Clinic – 1,300 employees - Koch Foods – 1,250 employees - Wind Creek Casino & Hotel Wetumpka – 1,200 employees - Rheem Water Heaters – 1,147 employees - GKN Aerospace – 1,000 employees - Baptist Medical Center South – 980 employees - Regions Bank – 977 employees - U.S. Postal Service – 900 employees - Montgomery County Commission – 877 employees - Creek Casino Montgomery – 850 employees

SECTION 3 | LOCATION OVERVIEW ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

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4 DEMOGRAPHICS

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FOR SALE | SFR PORTFOLIO

ALABAMA 66 SFR PORTFOLIO Birmingham, Huntsville & Montgomery Metro Areas

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Demographic Profile - Birmingham

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Demographic Profile - Huntsville

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Demographic Profile - Montgomery

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5 ABOUT SVN®

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FOR SALE | SFR PORTFOLIO

ALABAMA 66 SFR PORTFOLIO Birmingham, Huntsville & Montgomery Metro Areas

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Mark Allen Advisor SVN | Investment Sales Group

All SVN® Offices Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Mark began his career in real estate in 2009 as a cadet at the United States Military Academy at West Point. Since then, he has been involved in the acquisition, renovation, management and disposition of a variety of asset types and classes across multiple markets. Today, Mark focuses on Multifamily and Single Family Rental portfolio owner representation. He is committed to the values of competency and integrity - He strives to provide clients with superior consultative and transaction services, including: formulating short and long term business strategies, production and delivery of the most in-depth market research, providing industry contacts, and transaction execution through specialized asset marketing strategies. Prior to his career in Commercial Real Estate, Mark was a business development lead and consultant at MSC Software, working to understand his clients challenges and business, while integrating MSC software and services to add value directly to his client's bottom line. In addition, Mark served in the US Army as a Field Artillery Officer where he lead troops in Operation Enduring Freedom - Afghanistan.

License #: 677036 Phone: 972.865.6328 Fax: 214.206.9616 E-mail: [email protected] Address: 6320 LBJ Frwy. Suite 228 Dallas, TX 75240

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Todd Franks, CCIM Managing Director SVN | Investment Sales Group

All SVN® Offices Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

Todd’s career in commercial real estate brokerage began in 2000 by specializing in the representation of multi-family Sellers. Over the past 16 years, Todd has facilitated the development, redevelopment, disposition, acquisition and repositioning of hundreds of A, B, and C – Class multi-family and commercial assets (totaling more than $750,000,000), in the Dallas/Fort Worth market as well as secondary and tertiary markets across North Texas and Oklahoma. When Todd left his previous brokerage firm in March 2014, he was acknowledged as the all-time top producer. Shortly after, Todd opened his own SVN office in Dallas, TX and is now recognized as one of the top five advisors in the world (SVN 2015). His list of clients includes: Trammel Crow Residential Development, Highland Capital, CW Capital, LNR Partners, C-III, Midland Loan Services, Orix Capital Markets, Imperial Bank, City National Bank, La Jolla Bank as well as numerous lenders, servicers, institutions, family offices, partnerships and individual owners. Todd is regularly interviewed and featured in local and national commercial real estate publications such as “The New York Times,” “The Dallas Morning News,” “Dallas Business Journal,” “Globe Street” and “Bisnow.” He has also served as an expert witness in trials that require multi-family and financing expertise. In 2011, Todd became the youngest founder in the acquisition of “Texas Republic Bank” which has matured from $22,000,000 to now over $160,000,000 in assets. Related volunteer work included: Former Chairman of the Board for the Vickery Meadows Economic Development Division, former Board of Directors for the Vickery Meadows Public Improvement District and former Board of the Multi-family Property Standards Committee.

License #: 479935 Phone: 972.916.9397 Fax: 214.206.9616 E-mail: [email protected] Address: 6320 LBJ Frwy. Suite 228 Dallas, TX 75240

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Recent SFR Portfolio Sales Experience (Select Transactions)

SECTION 5 | ABOUT SVN® ALABAMA 66 SFR PORTFOLIO | BIRMINGHAM, HUNTSVILLE & MONTGOMERY METRO AREAS

PROPERTY LOCATION TYPE CLOSE DATE

Wisconsin 44 Portfolio Appleton, WI Value Add On Market: Multiple LOI’s

475 SFR Portfolio Chicago, IL Value Add On Market: Multiple LOI’s

190 SFR Portfolio Tampa, FL Stable On Market: Multiple LOI’s

32 SFR Portfolio Charlotte, NC Value Add March 2017

28 SFR Portfolio Charlotte, NC Value Add December 2016

10 SFR/MF Portfolio Charlotte, NC Value Add November 2016

38 SFR/MF Portfolio Charlotte, NC Value Add October 2016

67 SFR Portfolio Fort Worth, TX Stable June 2016

Lakewood Townhomes Dallas, TX Stable April 2016

East Dallas Townhomes Dallas, TX New Construction April 2016

Mesquite SFR Portfolio Mesquite, TX Stable (SFR) March 2016

53 SFR Portfolio DFW, TX Value Add (SFR) March 2016

Keene Place Keene, TX Stable (4-Plexes) December 2015

Pleasant Grove SFRs Dallas, TX Value Add (SFR) October 2015

Fort Worth SFRs Fort Worth, TX Stable (SFR) October 2015

Village Park Fort Worth, TX New Construction (SFR) January 2015

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40 All SVN® Offices Independently Owned and Operated The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

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