INVESTMENT OFFERING - LoopNet

24 UNITS

INVESTMENTOFFERING

THE ACADIA NORTHAPARTMENTS

133 SOUTH 900 EASTSALT LAKE CITY, UT

170 South Main Street, Suite 1600Salt Lake City, UT cushmanwakefield.com

Contact

KIP PAULVice Chairman - Investment Sales +1 801 303 5555 [email protected]

JORGI PAULSenior Associate - Investment Sales +1 801 303 5570 [email protected]

RHETT BUEDirector - Investment Sales +1 801 303 5416 [email protected]

THE ACADIA NORTH133 South 900 East | Salt Lake City, UT

This Investment Offering provides the opportunity to acquire THE ACADIA NORTH, 24 newly renovated apartments located centrally between downtown Salt Lake City and the University of Utah.

HIGHLIGHTS INCLUDE:

• Quality location in urban area

• Property features over $1mm in recent improvements ($45,000/unit), with all units renovated identically

• Exterior renovation consisted of transforming the façade from a brick veneer to a mixture of dark metals, rich hardwood buildouts and a contemporary paint scheme to provide a sophisticated, modern appearance

• Functional obsolescence was cured in the form of central HVAC, energy efficient vinyl windows, combination washer/dryer units, and LED lighting throughout

• Interior renovation consisted of open floor plan configuration and high-end finishes including matte black plumbing and lighting fixtures, Stratamax flooring, tile backsplashes and tub surrounds, quartz countertops, and stainless-steel appliances

• In-place avg. rental rate of $1,128/mo. ($1.92 psf)

• Sufficient surface parking of one space per unit (includes four covered parking spaces)

INVESTMENT SUMMARY

Unit Mix: 1 BR, 1 BA (avg. 569 sf): 18 units2 BR, 1 BA (avg. 642 sf): 6 unitsTotal: 24 units

Site Size: 0.45 acres

Parcel Number: 16-05-133-029

Age: 1967/2018

Zoning: RMF-35

VALUE

Sales Price: $5,065,000 ($211,042/unit)

Cap Rate: 4.80% (In-Place NOI)5.30% (Proforma NOI)

Buyer to Assume Exiting Debt

Please see Operating Statement for Details

Cash on Cash Return:

6.01% (In-Place NOI)7.28% (Proforma NOI)

Contact





INCOME STATEMENT

Income T-12 (May)In-Place Income &T-12 Expenses Proforma

Rent $ 329,605 $ 324,900 (Avg. $1,128/mo. - $1.92 psf)

$ 358,560 (Avg. $1,245/mo. - $2.12 psf)

Parking $ 7,014 $ 7,200 ($25/space/mo. - 24 spaces)

$ 30,794Internet $ 16,839 $ 17,340

($60/u/mo.)

Insurance, Taxes, Pet Rent $ 6,941 $ 8,016

RUBS $ 10,312 $ 10,312 $ 10,312

Other $ 4,139 $ 4,139 $ 4,139

Total Income $ 374,850 $ 371,907 $ 403,805

Collection Loss/Bad Debt <$ 314> n/a n/a

Concessions <$ 1,643> n/a <$ 1,793>

Vacancy <$ 8,778> (2.7%) <$ 11,157> (3%) <$ 17,928> (4%)

Gross Operating Income $ 364,115 $ 360,750 $ 384,084

Expenses

Admin/Licenses & Permits $ 12,416 $ 12,416 $ 11,783

Marketing $ 2,211 $ 2,211 $ 2,211

Utilities $ 9,263 $ 9,263 $ 9,263

Contract Services $ 6,823 $ 6,823 $ 6,823

Repairs & Maintenance $ 7,361 $ 7,361 $ 7,361

Turnover $ 4,891 $ 4,891 $ 4,891

Payroll $ 33,385 $ 33,385 $ 33,385

Management Fee $ 12,666 (3.5%) $ 12,626 (3.5%) $ 11,523 (3%)

Insurance $ 5,974 $ 5,974 $ 5,974

Real Estate Taxes $ 19,614 (2019 Actual)

$ 22,804 (2020 Anticipated)

$ 22,804 (2020 Anticipated)

Total Expenses $ 114,605 ($4,775/u/yr)

$ 117,755 ($4,906/u/yr)

$ 116,018 ($4,834/u/yr)

Net Operating Income $ 249,511 $ 242,995 $ 268,066

Contact





TRANSACTION STRUCTURE - IN-PLACE NOIValue at 4.80% Cap Rate $ 5,065,000 ($211,042/unit)

Equity - 39% $ 1,968,000

Debt Assumption $ 3,097,000

Net Operating Income $ 242,995 (In-Place)

Debt Service $ 124,800

Cash Flow $ 118,195

Cash on Cash Return 6.01%

TRANSACTION STRUCTURE - PROFORMA NOIValue at 5.30% Cap Rate $ 5,065,000 ($211,042/unit)

Equity - 39% $ 1,968,000

Debt Assumption $ 3,097,000

Net Operating Income $ 268,066 (Proforma)

Debt Service $ 124,800

Cash Flow $ 143,266

Cash on Cash Return 7.28%

BUYER TO ASSUME EXISTING DEBT• Fannie Mae, Tier III Loan

• Non-recourse, no warm body carveouts, no monthly escrows for reserves, taxes, or insurance

• Remaining Principal: $3,097,000

• Monthly Payment: $10,400 (Full Term I/O at 3.9%)

• 6 Years remaining (due date of Note is 84 months from 5/31/19)

• Prepayment penalty – 44 months left of yield maintenance, then 1% of principal balance thereafter

• Supplemental debt available until 05/31/2021

Contact





RENT ROLL

Unit No. Unit TypeUnit

Size (SF)LeaseEnd

MonthlyRent

MonthlyRent PSF Media Parking Taxes Insurance Pet

1 2 BDR/ 1 BTH 641 Rented $ 1,195 $1.86 $ 60 $ 25 $ 10 $ 12

2 1 BDR/ 1 BTH 536 9/30/2020 $ 995 $1.86 $ 60 $ 25 $ 10 $ 12

3 1 BDR/ 1 BTH 534 Vacant $ 995 $1.86 $ 60 $ 25 $ 10 $ 12

4 1 BDR/ 1 BTH 571 3/31/2021 $ 1,095 $1.92 $ 60 $ 25 $ 10 $ 12 $ 35

5 1 BDR/ 1 BTH 570 7/31/2020 $ 1,195 $2.10 $ 60 $ 25 $ 10 $ 12

6 1 BDR/ 1 BTH 572 8/31/2020 $ 1,025 $1.79 $ 60 $ 25 $ 10 $ 12 $ 35

7 1 BDR/ 1 BTH 574 8/31/2020 $ 1,095 $1.91 $ 60 $ 25 $ 10 $ 12

8 2 BDR/ 1 BTH 637 Rented $ 1,195 $1.88 $ 60 $ 25 $ 10 $ 12

9 2 BDR/ 1 BTH 645 9/30/2020 $ 1,350 $2.09 $ 60 $ 25 $ 10 $ 12

10 1 BDR/ 1 BTH 571 7/31/2020 $ 1,045 $1.83 $ 60 $ 25 $ 10 $ 12

11 1 BDR/ 1 BTH 573 6/30/2020 $ 1,045 $1.82 $ 60 $ 25 $ 10 $ 12

12 1 BDR/ 1 BTH 573 4/30/2021 $ 1,045 $1.82 $ 60 $ 25 $ 10 $ 12

13 1 BDR/ 1 BTH 572 Vacant $ 1,045 $1.83 $ 60 $ 25 $ 10 $ 12

14 1 BDR/ 1 BTH 574 3/31/2021 $ 1,095 $1.91 $ 60 $ 25 $ 10 $ 12

15 1 BDR/ 1 BTH 576 6/30/2021 $ 995 $1.73 $ 60 $ 25 $ 10 $ 12

16 2 BDR/ 1 BTH 641 6/30/2021 $ 1,245 $1.94 $ 65 $ 25 $ 12 $ 10

17 2 BDR/ 1 BTH 645 6/30/2020 $ 1,245 $1.93 $ 60 $ 25 $ 10 $ 12

18 1 BDR/ 1 BTH 571 4/30/2021 $ 1,145 $2.01 $ 60 $ 25 $ 10 $ 12 $ 35

19 1 BDR/ 1 BTH 573 8/31/2020 $ 1,095 $1.91 $ 60 $ 25 $ 10 $ 12

20 1 BDR/ 1 BTH 573 5/31/2021 $ 1,125 $1.96 $ 60 $ 25 $ 10 $ 12

21 1 BDR/ 1 BTH 572 6/30/2020 $ 1,195 $2.09 $ 60 $ 25 $ 10 $ 12

22 1 BDR/ 1 BTH 574 2/28/2021 $ 1,225 $2.13 $ 60 $ 25 $ 10 $ 12 $ 35

23 1 BDR/ 1 BTH 576 Vacant $ 1,095 $1.90 $ 60 $ 25 $ 10 $ 12

24 2 BDR/ 1 BTH 641 9/30/2020 $ 1,295 $2.02 $ 60 $ 25 $ 10 $ 12

24 Units 14,085 $27,075 $1.92 $1,445 $600 $242 $286 $140

SUMMARY

Units Unit TypeAvg. UnitSize (SF)

Avg. MonthlyRent

MonthlyRent PSF

18 1 BDR/ 1 BTH 569 $1,086 $1.91

6 2 BDR/ 1 BTH 642 $1,254 $1.95

24 587 $1,128 $1.92

15

1580

80

80

80

215 215

80

UTA FrontRunner

UTA FrontRunner

TRAX Green Line

TRAX Green Line

TRAX S-LineTRAX S-Line

LibertyPark

Sugar HousePark

TRAX Red Line

TRAX Red Line TRAX Main Line

TRAX Main Line

400 South200 South

North Temple Street

South Temple StreetMain Street

300 West

State Street

900 South

1300 South

toPark City

Intermodal Intermodal HubHub

TRAXTRAX

Blue Line

Blue Line

UTA FrontRunner

UTA FrontRunner

Imagery: Google Earth/Landsat/Copernicus

CBD and CBD and PeripheryPeriphery

The Granary The Granary DistrictDistrict

The AvenuesThe Avenues

Sugar HouseSugar HouseUrban CoreUrban Core

HistoricTrolley Square

THE ACADIA NORTH

39 MinuteDrivetime(approx.)



9th & 9thDistrict

Contact

©2020 Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) REFERENCED HEREIN OR AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). ANY PROJECTIONS, OPINIONS OR ESTIMATES ARE SUBJECT TO UNCERTAINTY AND DO NOT SIGNIFY CURRENT OR FUTURE PROPERTY PERFORMANCE. path: U:\1 - Projects\Paul, K\1 - Flyers\133s900e





INVESTMENT OFFERING - LoopNet

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