OLDE TOWN APARTMENTS...OLDE TOWN APARTMENTS | 9 OLDE TOWN APARTMENTS IS WITHIN EASY ACCESS TO: >...
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O F F E R I N G M E M O R A N D U M
OLDE TOWN APARTMENTS 720 S. 5TH AVENUE, TUCSON, AZ 85701
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Presented by: NorthMarq Multifamily
Visit us online at northmarq.com
Daniel Leibsohn SENIOR ASSOCIATE
T 602.952.4048
C 602.284.5904
Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253
PHOENIX, AZ 85018
602.955.7100
MULTIFAMILY & MANUFACTURED HOUSING INVESTMENT SALES
Alex Quenzler VICE PRESIDENT-PRODUCER
T 602.508.2209
C 480.522.0250
NorthMarq Capital
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SITE DESCRIPTION
Apartment Community Olde Town Apartments
Location 720 S. 5th Avenue, Tucson, AZ 85701
Total Units 32
Year Built 1961
Net Rentable Square Feet 14,800
Number of Buildings 3
Number of Stories 2
Sub-market Armory Park/Downtown
Land Size 0.65
Density 49.23 Units Per Acre
Parking 40 spaces
Laundry On-Site Laundry Room
OFFERING
Price $2,000,000
Price Per Unit $62,500
Terms Cash - Fee Simple
MECHANICAL
Heating / Cooling Individual Roof Mounted Evaporative Coolers
Hot Water Commercial Boiler
Electricity Individual (Provided by TEP)
Water / Sewer Paid by Owner (City of Tucson)
CONSTRUCTION
Style Garden Style
Foundation Concrete
Framing Wood Frame
Exterior Painted Brick
Roof Flat
Parking Surface Asphalt
PROPERTY TAXES
Number of Parcels 1
Tax Parcel Number 117-07-2180
2018 Property Tax $14,068
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PROPERTY SUMMARY
UNIT TYPE # OF UNITS % OF COMPLEX
SQUARE FEET VACANT NON-REV ASKING RENT ASKING
RENT / SFTOTAL ASKING
RENT
Studio 8 25% 450 - 1 $425 $0.94 $3,400
1BD/1BA 24 75% 500 5 - $495 $0.99 $11,880
TOTAL / AVERAGE 32 100% 488 5 1 $478 $0.98 $15,280
INFORMATION AS OF: 8/22/2018
Studio25%
1BD/1BA75%
UNI T MI X BR E A K DO W N
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AREA DESCRIPTION
Olde Town apartments is located in the up-and-coming neighborhood of Armory Park in Tucson, Arizona. The asset is a prime, value-add opportunity that boasts several amenities to the growing rental population, many of whom are exceeding the median household income of $41,700 a year due to the robust inflow of new corporate jobs added to the downtown area. The asset has secured access, a pool, lush, garden landscaping, a laundry room, a gazebo, an office, and plenty of on-site parking to the east and west of the building. Less than a mile north of the property is downtown Tucson that offers residents easy access to the Tucson Museum of Art, Museum of Contemporary Art, Rialto Theatre, Fox Tucson, Theatre, Hotel Congress, and several award winning restaurants including Downtown Kitchen + Cocktails, Elvira’s, Cafe Poca Cosa, El Charro, HUB, Diablo Burger, and Pueblo Vida. The opportunity exists for the new owner to convert the laundry room into a new unit. Upon completion of a complete interior and exterior renovation, a new owner can achieve rental premiums of $150/unit for studios and $275/unit for one bedrooms.
DO W N T O W N T UC SON
OLDE TOWN A P A R T M E N T S
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Tucson International
Airport
Kino Sports Complex
Tucson Spectrum Mall
Sentenial Peak ParkStarr Pass
Country Club
JW Marriot Starr Pass
Resort
Saguaro National Park
Randolf Golf Course
Pima Air & Space
Museum
Santa Cruz River Park
Davis-Monthan AFB
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Pima Community
College
University of Arizona
Banner University Medical Center Tucson
Southern Arizona VA
Hospital
Tucson Medical Center
Reid Park Zoo
Carondelet St. Joseph’s
Hospital
Park Place Mall
El Con Center
Tucson Convention
Center
Downtown Tucson
OLDE TOWN A P A R T M E N T S
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OLDE TOWN APARTMENTS IS WITHIN EASY ACCESS TO:
> University of Arizona - top ranked university with over 43,000 students enrolled, and a campus size of 392 acres.
> Downtown Tucson - ranks in the top 20 of Forbes Most Innovative Cities. There are 30 projects under construction or proposed-including hotels, apartments, commercial space, parks, and roadway improvements.
> Banner University Medical Center Tucson - 487-bed acute-care hospital and Southern Arizona’s only Level I Trauma Center.
> Tucson Medical Center - 641-bed locally governed nonprofit regional hospital.
> Carondelet St. Joseph’s Hospital - 486-bed acute-care facility located on the east side of Tucson. .
> Park Place Mall - over one million square feet of fashion and entertainment featuring more than 125 stores.
> El Con Center - open-air shopping mall anchored by JCPenney, Target, The Home Depot, Burlington, and Walmart .
> Tucson Convention Center - 27-acre campus featuring 8,962-seat indoor arena, two performing arts venues, and 205,000 square feet of meeting space.
> Davis-Monthan Air Force Base - Part of the United States Air Force’s Air Combat Command and is home to the 355th Fighter Wing, responsible for training and deploying A-10C Thunderbolt II pilots. Located five files southeast of downtown Tucson and employs 9,100.
> Tucson International Airport - over 10,000 passengers daily.
> Pima Air & Space Museum - one of the world’s largest non-government funded aerospace museums featuring a display of over 350 aircraft spread out over 80 acres.
> Reid Park Zoo - 24-acre city-owned and operated non-profit zoo located within Reid Park.
> Randolph Golf Course - Longest golf course in the City of Tucson system with year round 18-hole, regulation length courses.
> Kino Sports Complex - 155 acres dedicated to soccer and long field activities with a lighted 2,000-seat North Grandstand field, four more soccer fields, and a 3,000-seat stadium (North Stadium), Kino is the largest professional sports and entertainment venue of its kind in Pima County.
AREA HIGHLIGHTS
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PRO FORMA OPERATIONS
NOTES
RENTSNew rents based on comparable properties post rennovation.
PHYSICAL VACANCYConsistent with submarket performance.
PROPERTY TAXES2018 Annual property taxes quoted from the Pima County Treasurer.
UTILITIESIncreased 3% from adjusted T-12 operations.
OPERATIONAL EXPENSESBased on industry standards of similar properties.
UNIT TYPE UNITS SF ASKING RENT/UNIT
MONTHLY RENT
Studio 8 450 $550 $4,400
1BD/1BA 24 500 $650 $15,600
TOTAL/AVG. 32 488 $625 $20,000
PRO FORMA OPERATING INCOME
Monthly Scheduled Gross Rent $20,000
Annual Scheduled Gross Rent $240,000
Physical Vacancy 5.00% -$12,000
Economic Vacancy 4.00% -$9,600
Net Rental Income $218,400
Other Income (Late Fees, Pet Fees, Application Fees, Laundry) $3,000
Gross Operating Income $221,400
PRO FORMA OPERATING EXPENSES PER UNIT
Property Taxes $383 $14,068
Insurance $150 $4,800
Maintenance & Repairs $450 $14,400
Turnover $250 $8,000
Contract Services $100 $3,200
Utilities $1,145 $36,629
Payroll $500 $16,000
Management Fee 5.00%OF GOI $346 $11,070
Marketing $50 $1,600
Administrative Expenses $50 $1,600
Capital Reserve $300 $6,400
TOTAL OPERATING EXPENSES $117,767
Operating Cost Per Unit $3,680
Operating Cost Per Sq Ft $7.96
PRO FORMA NET OPERATING INCOME $103,633
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NO. PROPERTY YEAR BUILT UNITS UNIT SIZE
AVG. SFPHYSICAL
OCCUPANCYASKING RENT/
UNITASKING RENT/SF
NET RENT/UNIT NET RENT/SF MANAGED BY
SOlde Town Apartments 720 S. 5th Avenue Tucson, AZ 85701
1961 32 488 84% $478 $0.98 $478 $0.98 Peach Properties
1Belair Apartments 435 E. 18th Street Tucson, AZ 85701
1963 33 523 93% $460 $0.88 $460 $0.88 Son Property
2San Carlos 71 E. 13th Street Tucson, AZ 85701
1910 36 644 95% $698 $1.08 $698 $1.08 Ashton-Goodman
3The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ 85701
1971 53 548 96% $916 $1.67 $916 $1.67 NorthStar
4Coronado Hotel Apartments 402 E. 9th Street Tucson, AZ 85705
1928 31 379 95% $668 $1.76 $661 $1.75 Werth
Average 1947 37 516 93% $644 $1.25 $643 $1.24
RENT COMPARABLES
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Olde Town Apartments 720 S. 5th Avenue Tucson, AZ 85701
OWNER: Briles Family
MANAGED BY: Peach Properties
UNIT TYPE UNITS SF ASKING RENT/UNIT
ASKING RENT/SF
NET RENT/UNIT
NET RENT/SF
Studio 8 450 $425 $0.94 $425 $0.94
1BD/1BA 24 500 $495 $0.99 $495 $0.99
TOTAL/AVG. 32 488 $478 $0.98 $478 $0.98
S
Belair Apartments 435 E. 18th Street Tucson, AZ 85701
OWNER: Son Property
MANAGED BY: Tucson GS Apts, LLC
UNIT TYPE UNITS SF ASKING RENT/UNIT
ASKING RENT/SF
NET RENT/UNIT
NET RENT/SF
1BD/1BA 32 520 $456 $0.88 $456 $0.88
2BD/1BA 1 620 $600 $0.97 $600 $0.97
TOTAL/AVG. 33 523 $460 $0.88 $460 $0.88
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San Carlos 71 E. 13th Street Tucson, AZ 85701
OWNER: Ashton-Goodman Properties
MANAGED BY: OWNER
UNIT TYPE UNITS SF ASKING RENT/UNIT
ASKING RENT/SF
NET RENT/UNIT
NET RENT/SF
Studio 5 450 $588 $1.31 $588 $1.31
1BD/1BA 30 665 $709 $1.07 $709 $1.07
2BD/1BA 1 1000 $935 $0.94 $935 $0.94
TOTAL/AVG. 36 644 $698 $1.08 $698 $1.08
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The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ 85701
OWNER: GR Capital Partners, LLP
MANAGED BY: NorthStar
UNIT TYPE UNITS SF ASKING RENT/UNIT
ASKING RENT/SF
NET RENT/UNIT
NET RENT/SF
Studio 22 454 $794 $1.75 $794 $1.75
1BD/1BA 27 544 $968 $1.78 $968 $1.78
2BD/1BA 4 1086 $1,239 $1.14 $1,239 $1.14
TOTAL/AVG. 53 548 $916 $1.67 $916 $1.67
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Coronado Hotel Apartments 402 E. 9th Street Tucson, AZ 85705
OWNER: Coronado Hotel Apartments
MANAGED BY: Werth Realty
UNIT TYPE UNITS SF ASKING RENT/UNIT
ASKING RENT/SF
NET RENT/UNIT
NET RENT/SF
Studio 31 379 $995 $2.63 $995 $2.63
TOTAL/AVG. 31 379 $668 $1.76 $661 $1.75
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RENT COMPARABLES
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SOlde Town Apartments 720 S. 5th Avenue Tucson, AZ 85701
1Belair Apartments 435 E. 18th Street Tucson, AZ 85701
2San Carlos 71 E. 13th Street Tucson, AZ 85701
3The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ 85701
4Coronado Hotel Apartments 402 E. 9th Street Tucson, AZ 85705
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SITE
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M U L T I F A M I L Y & M A N U F A C T U R E D H O U S I N G I N V E S T M E N T S A L E S
Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253
PHOENIX, AZ 85018
602.955.7100
NorthMarq Multifamily
Visit us online at northmarq.com
Daniel Leibsohn SENIOR ASSOCIATE
T 602.952.4048
C 602.284.5904
Alex Quenzler VICE PRESIDENT-PRODUCER
T 602.508.2209
C 480.522.0250
James DuMars MANAGING DIRECTOR
T 602.508.2206
C 602.714.4202
NorthMarq Capital