OFFERING MEMORANDUM - LoopNet...Effective Gross Income (EGI) $ 2,927,684 $ 11,090 $ 3,349,151 $...
Transcript of OFFERING MEMORANDUM - LoopNet...Effective Gross Income (EGI) $ 2,927,684 $ 11,090 $ 3,349,151 $...
1 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
O F F E R I N G M E M O R A N D U M
EXCLUSIVELY PRESENTED BY
4150 E. MAIN STREET | MESA, ARIZONA 85205
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.
2 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
OFFERING SUMMARY
PRICE: $45,000,000
PRICE/UNIT: $170,455
PRICE/FOOT: $178.67
TERMS: Cash to New Loan
AFFORDABLE SUMMARY: 238 units are designated as affordable and subject to Declaration of Affirmative Land Use and Restrictive Covenants Agreement (LURA) dated May 8, 2006. 26 units are designated as market rate.
DOCUMENTS: LURA, Operating Statement, Rent Roll, etc. are available upon request.
PROGRAM: Section 42 (i) (3) (A)
PLACED IN SERVICE: 10/14/05
TERMINATION DATE FOR EXTENDED USE PERIOD:
5/15/2037
MEDIAN FAMILY INCOME: $72,900
QCT: Not Eligible
3 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
PROPERTY SUMMARY
Apartment Community San Fernando Apartments
Address 4150 East Main StreetMesa, Arizona 85205
Number of Units 264
Year Completed 2005
Net Rentable Square Feet ±251,856 SF
Weighted Average Unit Size ±954 SF
Number of Buildings 22 Residential including Leasing Office/Clubhouse & Fitness Center
Number of Floors Two
Parcel Size 15.42 Acres
Site Density 17.12 Units per Acre
THE OFFERING
Covered Spaces 264
Uncovered 278
Total Parking Spaces 542
Parking Ratio 2.05 Spaces per Unit
PARKING BREAKDOWN
Tax Parcel Number 140-19-003A
Zoning RM-4
High School District Mesa Unified
Elementary School District Mesa Unified
ASSESSOR/PARCEL INFORMATION
Building Type Garden
Construction Type Wood Frame & Stucco
Foundation Type Concrete
Roofs Pitched Tile
Parking Surface Asphalt
HVAC Individual Ground Mounted Units
Electrical Individually Metered
Hot Water Individual Domestic Hot Water (Electric)
Plumbing Copper
Wiring Copper
Life Safety Smoke Detectors in Apartment Interiors &Fire Extinguishers on Building Exteriors
CONSTRUCTION + MECHANICAL
Electric Salt River Project
Gas None
Water City of Mesa
Sewer City of Mesa
Trash City of Mesa
Phone Cox or Century Link
Cable Cox, DIRECTV or Dish Network
Internet Cox or CenturyLink
UTILITIES
4 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
SITE MAP
5 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
OFFERING AMENITIES
COMMUNITYAMENITIES » Sparkling Swimming Pool and Spa with Lounge Seating
» Fitness Facility
» Stand-Alone Clubhouse with Leasing Office
» Spacious Outdoor Areas with Barbecue Grills
» Assigned Covered Parking
» Vehicular Gating
» Basketball Court
» Children’s Play Structure/Area
» Enclosed Trash Recepticles
FLOOR PLANAMENITIES » Full Size W/D
» 9ft Ceilings
» Private Balconies and Patios
» Dishwasher
» Microwave
» All Electric Kitchen
» Gourmet Style Kitchens
» Modern Black Appliances
» Kitchen Pantry
» Garbage Disposal
» Separate Dining Area
» Vertical Blinds
» Pantry
» Cable Ready
» Tile Floors/Carpet (Bedrooms)
» Ceiling Fan(s)
» Extra Storage
» Central Air/Heating
6 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
60 60
NEARBY AMENITIES
MAIN STREETMAIN STREET
7 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
FLOOR PLANS
1 BD/1 BA(635 SF)
2 BD/ 2 BA(907 SF)
2 BD/ 2 BA TH(1,019 SF)
3 BD/ 2 BA(1,100 SF)
3 BD/ 2 BA(1,100 SF)
8 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
PROFORMA PROFORMASSaann FFeerrnnaannddoo
44115500 EEaasstt MMaaiinn SSttrreeeett MMeessaa,, AArriizzoonnaa
## ooff UUnniittss SSiizzee AAvvgg.. CCuurrrreenntt RReenntt
AARR ww// 66..8866%% IInnccrreeaassee 44//22002200
PPoosstt RReennoo ooff MMKKTT rraattee uunniittss && 33..11%% AARR iinnccrreeaassee 44//22002211
ΔΔ CCuurrrreenntt ttoo TTooddaayy''ss RReenntt MMoo.. RReenntt ppeerr SSFF
4 635 622$ 665$ 686$ 6.9% 0.98$ 3 635 833$ 925$ 1,090$ 11.0% 1.31$
19 635 693$ 742$ 765$ 7.1% 1.09$ 55 907 882$ 944$ 973$ 7.0% 0.97$ 26 907 711$ 761$ 785$ 7.0% 0.78$ 11 907 1,003$ 1,095$ 1,175$ 9.2% 1.11$ 93 1019 881$ 942$ 971$ 6.9% 0.86$ 3 1019 787$ 842$ 868$ 7.0% 0.77$ 8 1019 1,024$ 1,125$ 1,350$ 9.9% 1.00$ 6 1100 811$ 867$ 894$ 6.9% 0.74$
32 1100 1,001$ 1,070$ 1,103$ 6.9% 0.91$ 4 1100 1,237$ 1,322$ 1,446$ 6.9% 1.12$
264 954 873$ 936$ 976$ 2,766,180$ 2,965,752$ 3,090,600$
EEffffeeccttiivvee GGrroossss IInnccoommeeRRUUBBSS // WW//DD IInnccoommeeMMiisscc.. IInnccoommeeEExxppeennsseess
IInnccoommee SSuummmmaarryyGPRI/Economic Rent 2,766,180$ 10,478$ 2,965,752$ 11,234$ 3,090,600$ 11,707$ Less: Vacancy Loss (57,537)$ (218)$ 2% (59,315)$ (225)$ 2% (61,812)$ (234)$ 2%Less: Loss to Lease/ Bad Debt (5,532)$ (21)$ 0% (2,966)$ (11)$ 0% (3,091)$ (12)$ 0% NNeett RReennttaall IInnccoommee 2,703,111$ 10,239$ 2% 2,903,471$ 10,998$ 2% 3,025,697$ 11,461$ 2%RUBS / W/D Income -$ -$ 205,680$ 779$ 276,840$ 1,049$ Other / Misc. Income 224,573$ 851$ 240,000$ 909$ 247,440$ 937$
TToottaall OOtthheerr IInnccoommee 224,573$ 851$ 445,680$ 1,688$ 524,280$ 1,986$ EEffffeeccttiivvee GGrroossss IInnccoommee ((EEGGII)) 2,927,684$ 11,090$ 3,349,151$ 12,686$ 3,549,977$ 13,447$
EExxppeennssee SSuummmmaarryyUtility Expense 160,640$ 608$ 5% 160,640$ 608$ 5% 160,640$ 608$ 5%Repairs/Bldg Maint and Turnover 125,200$ 474$ 4% 125,200$ 474$ 4% 125,200$ 474$ 4%Marketing 701$ 3$ 0% 701$ 3$ 0% 701$ 3$ 0%Management 112,931$ 428$ 3.9% 93,776$ 355$ 2.8% 99,399$ 377$ 2.8%Payroll 337,435$ 1,278$ 12% 337,435$ 1,278$ 10% 337,435$ 1,278$ 10%Taxes/Ins/Rents 225,003$ 852$ 8% 235,003$ 890$ 7% 235,003$ 890$ 7%Admin/Replacement/Compliance 147,915$ 560$ 5% 147,915$ 560$ 4% 147,915$ 560$ 4%
EExxppeennsseess BBeeffoorree RReesseerrvveess 1,109,825$ 4,204$ 38% 1,100,670$ 4,169$ 34% 1,106,293$ 4,191$ 32%
Replacement Reserves -$ -$ 0% 79,200$ -$ 2% 79,200$ -$ 2%TToottaall EExxppeennsseess 1,109,825$ 4,204$ 38% 1,179,870$ 4,169$ 36% 1,185,493$ 4,191$ 34%
NNeett OOppeerraattiinngg IInnccoommee 1,817,859$ 6,886$ 62% 2,169,281$ 8,217$ 64% 2,364,484$ 8,956$ 66%
CCaapp RRaattee AAnnaallyyssiiss Cap Rate Price Per / Unit Price / Sqft Price Price / Unit Price / Sqft Price Price / Unit Price / Sqft
4.00% 45,446,477$ 172,146$ 180.38$ 54,232,024$ 205,424$ 215.25$ 59,112,101$ 223,909$ 234.62$ 4.25% 42,773,155$ 162,020$ 169.77$ 51,041,905$ 193,341$ 202.59$ 55,634,918$ 210,738$ 220.82$ 4.50% 40,396,869$ 153,018$ 160.34$ 48,206,244$ 182,599$ 191.33$ 52,544,090$ 199,031$ 208.55$
Post Renovation Rent Assumes CapEx of 26 units @ $5,000/unit. ($130,000)
3Bed/2Bath - AR50%2Bed/2Bath TH - MKT
1Bed/1Bath - MKT
2Bed/2Bath TH - AR60%2Bed/2Bath TH - AR50%
1Bed/1Bath - AR60%2Bed/2Bath - AR60%2Bed/2Bath - AR50%2Bed/2Bath - MKT
Total/Avg:
T-12T-2
T-12 Proforma
AAvvgg.. CCuurrrreenntt RReenntt SScchheedduulleedd RReenntt aafftteerr 66..8866%% iinnccrreeaassee 44//2200
Proforma
N/AT-2
Gross Annual Total
UUnniitt TTyyppee
1Bed/1Bath - AR50%
3Bed/2Bath - MKT3Bed/2Bath - AR60%
Proforma
PPoosstt RReennoovvaattiioonn RReenntt ++ 33..11 %% RReenntt iinnccrreeaassee oonn AARR uunniittss
ProformaT-2 + 6.86% + 3.1%T-2 + 6.86%
Post Reno Rent on MKT rate units & 3.1% AR increase 4/202126u@$50/m & 264u@$60/m
Inclusive of AR 2020 and MKT Increases26u@$75/m & 264u@$80/m
2017: 97.0%
2018: 98.1%
2019 98.6%
2020 YTD: 98.9%
Annual Occupancy History Average
9 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
SALE COMPARABLES - MARKET RATE
PROPERTY CITY YEAR BUILT UNITS PRICE $/UNIT $/SF SALE DATE
SAN FERNANDO MESA 2005 264 $45,000,000 $170,455 $178.67 TBD
CAMBRIA GILBERT 2000 174 $35,125,000 $201,867 $139.27 11/16/18
MONTERO AT DANA PARK MESA 2000 208 $35,800,000 $172,115 $167.75 4/30/18
LA COSTA AT DOBSON RANCH MESA 1979 194 $33,750,000 $173,969 $166.80 5/30/19
VILLAGE AT LINDSAY PARK MESA 1997 256 $45,810,000 $178,945 $197.80 7/2/18
ALANTE AT THE ISLANDS CHANDLER 1996 320 $59,600,000 $186,250 $166.62 2/22/19
INDIGO SPRINGS MESA 1999 240 $41,685,000 $173,688 $185.74 10/17/18
BISCAYNE BAY CHANDLER 2000 512 $110,250,000 $215,332 $231.13 9/17/19
ALCOVE AT THE ISLANDS GILBERT 1989 272 $48,600,000 $178,676 $204.24 1/15/19
AVERAGE 1996 271 $51,327,500 $185,105 $182
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10 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
CITY OF MESA
INFORMATION COURTESY OF SELECTMESA.COM
36MEDIAN AGE
AZ: 37.3 | U.S. 38.3
38.0%*ASSOCIATES DEGREE
OR HIGHER*
$51,084MEDIAN HOUSEHOLD
INCOME
500,000 MESA POPULATION
$243,075MEDIAN HOME
SALE PRICE
1.4M WORKFORCE POPULATION WITHIN A 30-MINUTE DRIVE
35TH LARGESTCITY IN THE U.S. LARGER THAN
MIAMI, MINNEAPOLIS & ATLANTA
2ND LARGEST CITY IN PHOENIX-MESA
METRO
11 | San Fernando ApartmentsInformation contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.
EXCLUSIVELY PRESENTED BY
Todd BraunPrincipal602.474.9550tbraun@leearizona.comwww.braunapartmentgroup.com
3200 E. Camelback Road, Suite 100Phoenix, AZ 85018
602.956.7777www.leearizona.com
All information furnished regarding property for sale, rental or financing is from sources deemed reliable, but no warranty or representation is made to the accuracy thereof and same is submitted to errors, omissions, change of price, rental or other conditions prior to sale, lease or financing or withdrawal without notice. No liability of any kind is to be imposed on the broker herein.
4150 E. MAIN STREET | MESA, ARIZONA 85205