REGENCY 59 MULTIFAMILY - $150,000 PRICE REDUCTION...Phoenix, AZ 85017 $2,700,000 26,808 SF $100.72...
Transcript of REGENCY 59 MULTIFAMILY - $150,000 PRICE REDUCTION...Phoenix, AZ 85017 $2,700,000 26,808 SF $100.72...
SVN | Rich Investment Real Estate Partners | 10940 Wilshire Blvd., Suite 1600, Los Angeles, CA 90024 SALE BROCHURE
REGENCY 59MULTIFAMILY -$150,000 PRICEREDUCTION4512 N. BLACK CANYON HIGHWAYPHOENIX, AZ 85017
Michael Chang BRE#01880895Vice [email protected] #01880895
Michael FinchSenior Vice [email protected]
Jeff ClineSenior Vice [email protected]
OFFERING SUMMAROFFERING SUMMARYY
Sale Price: $2,700,000
Number Of Units: 59
Pro Forma Cap Rate: 7.5%
Cap Rate: 7.22%
Current NOI: $194,950
Lot Size: 1.55 Acres
Year Built: 1964
Building Size: 26,808
Renovated: 2014
Zoning: M-H
Market: Phoenix
Submarket: Northwest Phoenix
Price / SF: $100.72
PROPERPROPERTTY HIGHLIGHTSY HIGHLIGHTS
• Ideal Value-Add Opportunity at Low Price Per SF & Unit
• Partially Renovated in 2014
• Immediate Upside - 8.1% CAP on Pro Forma
• 18% Upside w/ approx. $170,000 CapEx - 9% CAP
• Freeway Exposure and Easy Access to the I-17 Black Canyon Freeway
DEMOGRAPHICSDEMOGRAPHICS
00.5 MILES.5 MILES 1 MILE1 MILE 1.5 MILES1.5 MILES
Total Households 3,565 9,791 18,716
Total Population 11,319 32,319 60,353
Average HH Income $32,196 $38,097 $40,358
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 2
Executive Summary
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 3
*$150,000 Price Reduction
Regency 59 consists of 15 separate single story buildings constructed in 1964 spanning over 1.55 acresacross 6 adjacent parcels. With 59 units available, the property offers a unit mix of (15) 2 bedroom/1 bath,(6) 1 bedroom/1 bath, and (38) studio units operating at historically high occupancy rate. The communityhas a gated filled-in pool, in which future Investors may convert into a small community courtyard toprovide residents with a quaint neighborhood vibe. The property had recently undergone a partialrenovation program in 2014. Under current ownership, each unit is renovated as the tenant vacates.Regency 59 is perfect for a savvy Investor looking to create immediate upside by implementing anaggressive management program to realize an 8% bump in rent growth instantly to obtain a 8.1% CAPreturn. Furthermore, a Buyer may also create additional value by spending approximately $2,000-$3,000per unit (or $170,000) to unlock additional upside of 18% rent growth to see a potentially rewarding +9%CAP project in the up and coming Phoenix sub-market at a relatively low price per unit and square feetbasis. Each unit is separately metered for electricity and contains wall AC units. Additional income may berealized by installing washer and dryer units in the underutilized laundry facility. Parking is abundantlyavailable with 45 spaces on-site and additional off-site street parking.
PROPERPROPERTTY OY OVERVERVIEWVIEW
Regency 59 is situated directly across from to the i-17 Black Canyon corridor with excellent freewayvisibility and access. Located just 1 mile south from Grand Canyon University, a significant contributor tolocal developments for nearby communities. The property is approximately 3 miles away from the lightrail, Metro Center Mall, and near the i-10 freeway providing tenants with nearby access to public transitand main freeway arteries. Surrounded by other residential communities, the property provides a greatneighborhood feel for residents.
LLOCOCAATION OTION OVERVERVIEWVIEW
Property Description
SSALE PRICEALE PRICE $2,$2,700700,,000000
LLOCOCAATION INFTION INFORMAORMATIONTION
Building Name Regency 59 Multifamily
Street Address 4512 N. Black Canyon Highway
City, State, Zip Phoenix, AZ 85017
County/Township Maricopa
Market Phoenix
Parking Surface
Cross Streets W. Campbell Ave
BUILDING INFBUILDING INFORMAORMATIONTION
Building Size 26,808 SF
Average Unit Size 425 SF
Number Of Buildings 15
Occupancy % 97.0
Number Of Floors 1
Year Built 1964
Last Renovated 2014
HVAC Wall
PROPERPROPERTTY DETY DETAILSAILS
Property Type Multifamily
Property Subtype Low-Rise/Garden
Zoning M-H
Lot Size 1.55 Acres
APN# 154-12-023C/-023D, -023E, -023F, -025C, -025E
Parking Surface
Number Of Parking 59
Electricity Separately Metered
Water/Sewer Master Metered
PPARKING & TRANSPORARKING & TRANSPORTTAATIONTION
Parking Type Surface
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 4
Property Details
SSALE HIGHLIGHTSALE HIGHLIGHTS
• Perfect Value-Add Opportunity at Low Basis
• Partially Renovated in 2014
• Immediate upside - 8.1% CAP on Pro Forma
• 18% Upside w/ $170,000 CapEx - +9% CAP
• Separately Metered for Electricity (Except for 4 Units)
• Fully Gated Community
• 45 On-Site Surface Parking
• Central Courtyard
• Freeway Exposure and Easy Access to the I-17 Black Canyon Freeway
• Additional Income Potential By Adding a Laundry Facility
• High Occupancy Rate Building
• 1-Mile Away from Grand Canyon University
INVESINVESTMENT HIGHLIGHTSTMENT HIGHLIGHTS
• Attractive $45,762 Price Per Unit
• Going in over 7% CAP at reduced price
• 60,000+ Population in a 1.5 mile Radius
• Phoenix, AZ rated as #1 Housing Market in 2017 (Per AZcentral.com)
• Top City for Overall Growth, Nationwide
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 5
Complete Highlights
UNIT TUNIT TYPEYPE CCOUNTOUNT % T% TOOTTALAL SIZE (SIZE (SF)SF) MARKET RENTMARKET RENT MARKET RENT WMARKET RENT W/ C/ CAPEXAPEX MARKET RENTMARKET RENT/SF/SF
2BD/1BA 15 25.4 600 $699 $750 $1.25
1BD/1BA 6 10.2 450 $535 $600 $1.33
Studio + 12 20.3 300 $425 $495 $1.65
Studio 26 44.1 250 $400 $450 $1.80
TTootals/Atals/Avvereragesages 5959 100%100% 21,80021,800 $29$29,,195195 $32,490$32,490 $1.49$1.49
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 6
Unit Mix Summary
INVESINVESTMENT OTMENT OVERVERVIEWVIEW CURRENTCURRENT PRO FPRO FORMAORMA PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX
Price $2,700,000 $2,700,000 $2,870,000Price per Unit $45,762 $45,762 $48,644GRM 8.4 7.7 7.3CAP Rate 7.2% 8.1% 9.0%Cash-on-Cash Return (yr 1) 9.73 % 13.25 % 15.13 %Total Return (yr 1) $116,013 $140,853 $179,843Debt Coverage Ratio 1.54 1.74 2.05
OPERAOPERATING DTING DAATTAA CURRENTCURRENT PRO FPRO FORMAORMA PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX
Gross Scheduled Income $322,740 $350,340 $391,440Other Income $3,000 $3,000 $5,000Total Scheduled Income $325,740 $353,340 $396,440Vacancy Cost $16,137 $17,517 $19,572Gross Income $309,603 $335,823 $376,868Operating Expenses $114,653 $116,033 $118,088Net Operating Income $194,950 $219,790 $258,780Pre-Tax Cash Flow $68,586 $93,426 $132,416
FINANCING DFINANCING DAATTAA CURRENTCURRENT PRO FPRO FORMAORMA PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX
Down Payment $705,000 $705,000 $875,000Loan Amount $1,995,000 $1,995,000 $1,995,000Debt Service $126,364 $126,364 $126,364Debt Service Monthly $10,530 $10,530 $10,530Principal Reduction (yr 1) $47,427 $47,427 $47,427
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 7
Financial Summary
INCINCOME SUMMAROME SUMMARYY CURRENTCURRENT PER SFPER SF PRO FPRO FORMAORMA PER SFPER SF
Rental Income $322,740 $12.04 $350,340 $13.07Other Income(App. Fees, Late Fees, Laundry Income) $3,000 $0.11 $3,000 $0.11
GrGross Ioss Incncomeome $325,$325,774040 $12.$12.1515 $353,340$353,340 $13.$13.1818
EXPENSE SUMMAREXPENSE SUMMARYY CURRENTCURRENT PER SFPER SF PRO FPRO FORMAORMA PER SFPER SF
Repairs & Maintenance $17,700 $0.66 $17,700 $0.66Utilities - Water & Sewer $23,454 $0.87 $23,454 $0.87Electricity $4,356 $0.16 $4,356 $0.16Management Fees (5%) $16,137 $0.60 $17,517 $0.65Contract Services $8,850 $0.33 $8,850 $0.33Property Taxes 2016 $10,194 $0.38 $10,194 $0.38Insurance $8,582 $0.32 $8,582 $0.32Pest Control $1,176 $0.04 $1,176 $0.04Payroll $14,400 $0.54 $14,400 $0.54City Tax $6,540 $0.24 $6,540 $0.24Trash $3,264 $0.12 $3,264 $0.12
GrGross Expensesoss Expenses $114,$114,653653 $4.28$4.28 $116,$116,033033 $4.33$4.33
NNeet Opert Operaating Iting Incncomeome $194,$194,950950 $7$7.27.27 $219$219,,790790 $8.20$8.20
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 8
Income & Expenses
INCINCOME SUMMAROME SUMMARYY PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX PER SFPER SF
Rental Income $391,440 $14.60Other Income(App. Fees, Late Fees, Laundry Income) $5,000 $0.19
GrGross Ioss Incncomeome $396,440$396,440 $14.$14.7979
EXPENSE SUMMAREXPENSE SUMMARYY PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX PER SFPER SF
Repairs & Maintenance $17,700 $0.66Utilities - Water & Sewer $23,454 $0.87Electricity $4,356 $0.16Management Fees (5%) $19,572 $0.73Contract Services $8,850 $0.33Property Taxes 2016 $10,194 $0.38Insurance $8,582 $0.32Pest Control $1,176 $0.04Payroll $14,400 $0.54City Tax $6,540 $0.24Trash $3,264 $0.12
GrGross Expensesoss Expenses $118,$118,088088 $4.40$4.40
NNeet Opert Operaating Iting Incncomeome $258,$258,780780 $9$9..6565
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 9
Income & Expenses
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 10
Additional Photos
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 11
Additional Photos
Regency 59 Multifamily
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 12
Regional Map
Location Maps
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 13
SUBJESUBJECT PROPERCT PROPERTTYY
4512 N. Black Canyon Highway | Phoenix, AZ 85017
$2,700,000Sale Price: 1.55 ACLot Size:
1964Year Built: 26,808 SFBuilding SF:
$100.72Price PSF: 59No. Units:
$45,763Price / Unit: 8.37GRM:
7.22%Cap: $194,950NOI:
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MOUNTMOUNTAIN RIDGE APAIN RIDGE APARARTMENTSTMENTS
9431 N Cave Creek Rd | Phoenix, AZ 85020
$2,700,000Sale Price: 2.32 ACLot Size:
1966Year Built: 47,820 SFBuilding SF:
$56.46Price PSF: 62No. Units:
$43,548Price / Unit: 12/06/2016Closed:
100%Occupancy:
Class C Apartments Building 62 Units of 47,820 SF Sold on 12/6/2016 for $2,700,000
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ROMA APROMA APARARTMENTSTMENTS
801-805 E Roma Ave | Phoenix, AZ 85014
$686,000Sale Price: 1.07 ACLot Size:
1944Year Built: 10,350 SFBuilding SF:
$66.28Price PSF: 13No. Units:
$52,769Price / Unit: 6.5%CAP:
03/17/2017Closed: 100%Occupancy:
$44,590NOI:
Class C Apartments Building 13 Units of 10,350 SF Sold on 3/17/2017 for $686,000
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REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 14
Sale Comps
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DEVDEVONSHIRE APONSHIRE APARARTMENTSTMENTS
2419 W Devonshire Ave | Phoenix, AZ 85015
$320,000Sale Price: 0.38 ACLot Size:
1959Year Built: 3,492 SFBuilding SF:
$91.64Price PSF: 6No. Units:
$53,333Price / Unit: 7.4%CAP:
02/02/2017Closed: 100%Occupancy:
$23,680NOI:
Class C Apartments Building 6 Units of 3,492 SF Sold on 2/2/2017 for $320,000
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GOLDEN KEY APGOLDEN KEY APARARTMENTSTMENTS
3675 W Osborn Rd | Phoenix, AZ 85019
$4,550,000Sale Price: 2.94 ACLot Size:
1980Year Built: 62,363 SFBuilding SF:
$72.96Price PSF: 91No. Units:
$50,000Price / Unit: 6.21%CAP:
03/30/2017Closed: $282,555NOI:
Class C Apartments Building 91 Units of 62,363 SF Sold on 3/30/2017 for $4,550,000 -Research Complete
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SUN GARDEN APSUN GARDEN APARARTMENTSTMENTS
4214 N 10th St | Phoenix, AZ 85014
$590,000Sale Price: 0.67 ACLot Size:
1958Year Built: 7,100 SFBuilding SF:
$83.10Price PSF: 12No. Units:
$49,166Price / Unit: 11/28/2016Closed:
100%Occupancy:
Class C Apartments Building 12 Units of 7,100 SF Sold on 11/28/2016 for $590,000
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REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 15
Sale Comps
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 16
SUBJESUBJECT PROPERCT PROPERTTYY PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CCAPAP GRMGRM # OF UNITS# OF UNITS
RRegencegency 59 My 59 Multifultifaamilymily
4512 N. Black Canyon Highway
Phoenix, AZ 85017
$2,700,000 26,808 SF $100.72 $45,763 7.22% 8.37 59
SSALE CALE COMPSOMPS PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CCAPAP GRMGRM # OF UNITS# OF UNITS CLCLOSEOSE
MMounountain Ridge Apatain Ridge Aparrtmentmentsts9431 N Cave Creek RdPhoenix, AZ 85020
$2,700,000 47,820 SF $56.46 $43,548 - - 62 12/06/2016
RRoma Apaoma Aparrtmentmentsts801-805 E Roma AvePhoenix, AZ 85014
$686,000 10,350 SF $66.28 $52,769 6.5% - 13 03/17/2017
DeDevvonshironshire Apae Aparrtmentmentsts2419 W Devonshire AvePhoenix, AZ 85015
$320,000 3,492 SF $91.64 $53,333 7.4% - 6 02/02/2017
Golden KGolden Keey Apay Aparrtmentmentsts3675 W Osborn RdPhoenix, AZ 85019
$4,550,000 62,363 SF $72.96 $50,000 6.21% - 91 03/30/2017
Sun GaSun Garrden Apaden Aparrtmentmentsts4214 N 10th StPhoenix, AZ 85014
$590,000 7,100 SF $83.10 $49,166 - - 12 11/28/2016
PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CCAPAP GRMGRM # OF UNITS# OF UNITS CLCLOSEOSE
TTootals/Atals/Avvereragesages $1,$1,776969,200,200 26,225 SF26,225 SF $67$67.46.46 $48,$48,007766 6.6.7%7% -- 36.836.8
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Sale Comps Summary
4512 N. Black Canyon Highway | Phoenix, AZ 85017SUBJESUBJECT PROPERCT PROPERTTYY
11 9431 N Cave Creek RdPhoenix, AZ 85020
MOUNTMOUNTAIN RIDGE APAIN RIDGE APARARTMENTSTMENTS22 801-805 E Roma Ave
Phoenix, AZ 85014
ROMA APROMA APARARTMENTSTMENTS33 2419 W Devonshire Ave
Phoenix, AZ 85015
DEVDEVONSHIRE APONSHIRE APARARTMENTSTMENTS44 3675 W Osborn Rd
Phoenix, AZ 85019
GOLDEN KEY APGOLDEN KEY APARARTMENTSTMENTS
55 4214 N 10th StPhoenix, AZ 85014
SUN GARDEN APSUN GARDEN APARARTMENTSTMENTS
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 17
Sale Comps Map
REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners | Page 18
POPULAPOPULATIONTION 00.5 MILES.5 MILES 1 MILE1 MILE 1.5 MILES1.5 MILES
Total population 11,319 32,319 60,353
Median age 25.0 26.0 26.8
Median age (male) 25.9 26.3 27.0
Median age (Female) 24.6 25.9 26.8
HOUSEHOLDS & INCHOUSEHOLDS & INCOMEOME 00.5 MILES.5 MILES 1 MILE1 MILE 1.5 MILES1.5 MILES
Total households 3,565 9,791 18,716
# of persons per HH 3.2 3.3 3.2
Average HH income $32,196 $38,097 $40,358
Average house value $175,114 $162,946 $157,352
ETHNICITETHNICITY (%)Y (%) 00.5 MILES.5 MILES 1 MILE1 MILE 1.5 MILES1.5 MILES
Hispanic 63.0% 66.9% 64.2%
RARACE (%)CE (%)
White 51.9% 56.6% 58.8%
Black 12.0% 8.6% 7.4%
Asian 4.8% 3.3% 2.9%
Hawaiian 0.0% 0.2% 0.5%
American Indian 3.0% 2.6% 2.3%
Other 25.2% 27.0% 26.7%
* Demographic data derived from 2010 US Census
Demographics Map