SHREVEPORT 14 SFR PORTFOLIO - LoopNet...SHREVEPORT 14 SFR PORTFOLIO SHREVEPORT-BOSSIER CITY MSA, LA...

SHREVEPORT 14 SFR PORTFOLIO SHREVEPORT-BOSSIER CITY MSA, LA

Angel Flores Advisor 972.232.2325 [email protected]

Jeff Wilke, CCIM, SIOR Managing Director 504.814.1492 [email protected]

SVN | Gulf Partners | 139 Enterprise Drive, Gretna, LA 70056 OFFERING MEMORANDUM

1. PORTFOLIO OVERVIEW 3 Executive Summary Property Overview Additional Photos Benefits of SFR Portfolios 2. FINANCIAL OVERVIEW 8 Unit Mix Rent Roll Financial Analysis IRR Deferred 3. LOCATION OVERVIEW 13 Area Highlights Portfolio Map Economic Drivers 4. SHREVEPORT IN THE NEWS 17 Recent News Articles 5. DEMOGRAPHICS 27 6. ABOUT SVN® 33 Recent SFR Sales Experience

1. PORTFOLIO OVERVIEW

Shreveport-Bossier City MSA, LA

SVN | Gulf Partners | 139 Enterprise Drive, Gretna, LA 70056

PROPERTY OVERVIEW

SVN | Investment Sales Group is pleased to announce the exclusive listing of this 14 Single Family Rental Portfolio in the Shreveport/Bossier City Metro Area. Ranked in the top 25 cities in the nation to own single family rentals by Investibility, the Shreveport/Bossier City MSA offers investors plenty of opportunity for growth. The Shreveport/Bossier City Portfolio is concentrated within a 5-mile radius. Most of the homes are wood frame construction and situated on large lots. The average home size is 1,328 SF. Four (4) homes feature 2 beds with 1 bath; four (4) homes are 3 bed 1 bath; three (3) 3 bed 1 ½ bath; and two (2) 3 bed 2 bath The homes were rehabbed to a high rental standard and the new owner will benefit from lower repair and maintenance costs due to these improvements. A list price of $1,000,000 for the entire portfolio or $71,429 per home, the portfolio provides the opportunity to purchase a rehabbed and stabilized turn-key SFR portfolio at below replacement cost and below the estimated retail prices for each home.

PROPERTY HIGHLIGHTS

• Opportunity to Purchase a Fully Occupied and Renovated Portfolio

• Opportunity for an Investor to Continue Cash Flowing. Modest Rent Increases were Modeled but a More Aggressive Investor can Increase Rents Further.

• Highly Financeable SFR Portfolio with Estimated DSC of 1.50 with Individual Comparative Home Analysis Reports Available

• Homes Located Closely Together (5-Mile Radius) Provides the Opportunity to Increase Returns Through Hands-On Management

• Offered at an Effective Gross Yield of 14%

PROPERTY SUMMARY

SALE PRICE: $1,000,000

NUMBER OF HOMES: 14

PRICE/HOME: $71,429

AVG. SIZE/HOME 1328 SF

PRICE/SF: $53.79

EFFECTIVE AVG. RENT/UNIT/SF: $833 / $0.63

PROFORMA- AVG. RENT/UNIT/SF: $854 / $0.64

STABILIZED GROSS YIELD: 14.4%

STABILIZED NOI: $87,904

STABILIZED CAP RATE: 8.79%

YR 1 CASH-ON-CASH: 10.37%

Executive Summary

SHREVEPORT 14 SFR PORTFOLIO | SHREVEPORT-BOSSIER CITY MSA, LA

Interior Photos


Benefits of SFR Portfolios

As a secondary real estate market, the Shreveport/Bossier City MSA provides investors with an 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 or neighborhood

• Single Family Tenants tend to be more stable with less turnover


2. FINANCIAL OVERVIEW



Unit Mix


Rent Roll


Financial Analysis


IRR Deferred


3. LOCATION OVERVIEW



Low Cost of Living – Shreveport-Bossier City residents enjoy a cost of

living that is only 91.6% of the national average, the #10 Lowest Cost of Living in the Nation (Business Facilities, 2017)

North Louisiana is ranked with the #1 Lowest Cost of Doing Business in the Nation according to Forbes, and KPMG

Competitive Alternatives recognized the region as the #1 most cost competitive

area in the U.S. from 2008-2016

Alorica, a nationwide call center company, just announced that it would hire approximately 500

people from Shreveport-Bossier City as part of its expansion to

the area (September 2017)

The Shreveport-Bossier MSA was ranked #4 for Economic Growth

Potential for areas with populations under than 300,000 (Business

Facilities, 2017)

Home to Barksdale Air Force Base which hosts the 2nd Bomb Wing, the

oldest Bomb Wing in the Air Force, and it is also the area’s largest employer

with ~15,000 military and civilian employees

The MSA ranks as the #2 Emerging Cybersecurity Hub in the Nation according to Business

Facilities (2017)

Numerous cultural focal points including the Barksdale Global Power

Museum, Louisiana State Exhibit Museum, Meadows Museum of Art, R.W. Norton Art Gallery, Shreveport

Railroad Museum, Strand Theater, and more

The city of Shreveport is proposing a $150MM+ mixed-use development on

the north side of downtown which would include a hotel, multifamily

residential, office space, restaurants, and a sports complex which would spur

economic development

Expansive municipal park system with more than 60 parks

across 29,000 acres with 18 recreation centers, 5 swimming pools, hiking and bike trails, and

more

Area Highlights


Portfolio Map


ENTERTAINMENT DRIVERS - Jubilee Zoo

- Numerous Casinos (Boomtown, Eldorado, Horseshoe, Margaritaville, Sam’s Town)

- Red River District

- Sci-Port Discovery Center

- The Gardens of the American Rose Center

- World-Class Museums (Barksdale Global Power Museum, Louisiana State Exhibit Museum,

Meadows Museum of Art, R.W. Norton Art Gallery, Shreveport Railroad Museum, Shreveport

Water Works Museum, Spring Street Museum)

LARGEST EMPLOYERS (> 1,000 EMPLOYEES) - Barksdale Air Force Base – 14,500 employees

- Caddo Parish Public Schools – 9,416 employees

- Willis Knighton Health System – 7,632 employees

- Bossier Parish School Board – 3,000 employees

- Horseshoe Casino & Hotel – 3,000 employees

- LSU Health Shreveport – 2,762 employees

- University Health – 2,673 employees

- City of Shreveport – 2,569 employees

- Wal-Mart Stores – 2,101 employees

- Christus Schumptert Highland Hospital – 1,800 employees

- United States Department of Veterans Affairs – 1,682 employees

- Teleperformance – 1,623 employees

- Sam’s Town Casino – 1,265 employees

- Eldorado Resort Casino – 1,214 employees

- State of Louisiana Civil Service – 1,223 employees

- Boomtown Casino – 1,100 employees

- Margaritaville Resort Casino – 1,042 employees

Economic Drivers


4. SHREVEPORT IN THE NEWS



Company to hire 500 in Shreveport starting Thursday September 20, 2017 Lex Talamo

Shreveport in the News


Those looking for part-time, stay-at-home work could be hired on the spot at a Shreveport job fair on Thursday. Representatives from Alorica, a nationwide call center company, announced on Wednesday that it would hire about 500 people from the Shreveport-Bossier City area. Those hired will answer phones — call center work but done at home. The company typically pays from $9.50 to $12 an hour, according to job postings. Alorica will stage what it calls a casual "Meet and Greet" from 10 a.m. to 4 p.m. Thursday, Sept. 21, at the Northwest Louisiana Technical College on North Market Street in Shreveport. Company managers will conduct individual interviews so qualified candidates who are "a good fit" can be "hired on the spot," said Ken Muché, Alorica's director of global public relations. "We would like to get up and running as soon as possible," Muché said. "Ideal candidates will be outgoing, engaging people who enjoy helping others."

Service industry experience and computer and technical skills are a plus but not necessary to land a job, Muché said. "It doesn't matter what industry you've worked in, because we serve people of all different backgrounds," he said. What candidates can expect on Thursday: an initial meeting with company reps in groups of 10 to 12, followed by a 10- to 15-minute one-on-one interview. "We want people to interview us as much as we want to interview them," Muché said. "If we like them, and they like us, they'll get a job offer right on the spot.“ The company will offer flexible schedules from five to 25 hours each week, said Jacob Kramer, Alorica's senior director. Employees must complete two weeks of online training. Muché declined to discuss pay rates due to the "competitive nature" of the industry. But Kramer said that the rates were "competitive for this region" and increase after employees complete training. In national job postings, Alorica lists an hourly rate of $10.50 to $12 for customer service representatives. Additional rates were reported in 2016 by the The Messenger-Inquirer, a daily newspaper in Owensboro, Kentucky, where Alorica opened a new office and offered more than 800 jobs: • Customer service representative, $9.78 to $10.37 an hour. • Technical support representative, $10.50 an hour. • Customer care specialist, $9.97 an hour. • Sales consultant, $11.96 an hour. • Sales representative, $9.42 an hour. • Inbound sales representative, $11.06 an hour. • Sales professional, $12.09 an hour. • Sales agent, $10.05 an hour. • Bilingual call center representative, $14 an hour. • Trainer, $14.37 an hour. • Manager, $27,630 a year; business consultant, $27,796 a year.



These rates have not been adjusted for inflation and may not apply to Shreveport's jobs. Alorica never reveals the identities of its clients, Muché said. He said Alorica is the largest customer service solutions provider in the U.S. and the third largest globally, with 70 percent of the company's revenue coming from Fortune 500 companies. The start-up jobs in Shreveport would mostly involve answering telephone calls, Muché said. But he also noted that the company provides leadership training and opportunities to allow employees to "move up." Nationwide, 70 percent of the company's supervisors, managers and senior leaders began as customer engagement experts, the company's press release said. With about 100 offices nationwide, the company also provides other opportunities should people choose or need to leave Shreveport, Muché said. Earl Meador, director of Northwest Louisiana Technical College, said the college was excited to host the "meet and greet" and partner with Alorica. "For our community and our region, this is planting the seeds of many good things to come," Meador said. "This plants the seeds for a lot of technical jobs in our community. When we start to become known as a technical community, with a trained workforce, people will start to stay." Gerald Joshua, the campus dean, said the college's students already are aware of the Thursday."We've announced it in the classrooms, and they are ready," Joshua said. "It's going to be great, and it's going to grow.“ Alorica opened a center in Tulsa, Oklahoma, in May 2016, according to the Tulsa World. The center started with 250 employees and had grown to more than 1,200. The company selected Shreveport from a pool of three cities due, in part, to the city's partnerships with other economic development agencies, including the North Louisiana Economic Partnership, proximity to colleges and universities and military presence, Muché said.



As well as the signature Southern Charm. "For us it's all about finding the right people, and our research has shown that you have a lot of people with hospitality here," Muché said. "We liked seeing the economic development teams in the city working together and the strong work ethic and hospitality of the people.“ Shreveport Mayor Ollie Tyler, who attended the company's Wednesday press conference, said she had been looking for opportunities to bring jobs to Shreveport when she came across Alorica’s website. The city's Economic Development director Arlena Acree said the jobs "fill a need" for those in Shreveport looking for professional, part-time work. Tyler said Thursday will be "an exciting day for Shreveport.“ "We did not have anything like this in the city," Tyler said. "We are looking at 500 jobs we can bring to Shreveport.“ Representatives from the North Louisiana Economic Partnership, the African-American Chamber of Commerce of Shreveport-Bossier and the city council also attended a Wednesday morning media briefing.



Shreveport Bossier’s Low Cost of Living Benefits Families and Companies



(SHREVEPORT -BOSSIER, La) The latest Cost of Living Index for the second quarter of 2017 continues to rank Shreveport as one of the most affordable places to live in Louisiana. The Shreveport-Bossier City Metro has a cost of living of 91.6 percent of the national average- one of the lowest in the state. “Our low cost of living allows families to enjoy a higher standard of living, which makes Shreveport-Bossier an attractive place to live and work,” said Scott Martinez, CEcD, President of North Louisiana Economic Partnership (NLEP). “The low cost of living enhances companies’ ability to recruit the skilled workforce needed to remain competitive.” The Cost of Living Index, published by the Council for Community and Economic Research, estimates the amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, health care, etc. It is based on more than 90,000 prices collected from 253 participating communities in the second quarter of 2017. The Cost of Living Index measures regional cost differences in consumer goods and services. It's often used when comparing how expensive it is to live in one city versus another. NLEP, an Accredited Economic Development Organization serving 14 parishes in North Louisiana, gathers the pricing information for the Shreveport-Bossier City MSA. The information is compiled into a composite index, which is based on six weighted categories – grocery items (13.61%), housing (27.59%), utilities (10.06%), transportation (9.59%), health care (4.00%) and miscellaneous goods and services (35.15%).

September 8, 2017

The Shreveport-Bossier City MSA includes all of Caddo, Bossier, De Soto and Webster Parishes. For the Shreveport-Bossier City MSA, the two lowest cost categories are utilities at 75.6 percent of the national average and housing at 84.0 percent of the national average. To see how Shreveport’s cost of living compares with other communities around the nation, NLEP offers a Cost of Living calculator on our website, nlep.org/COLIcalculator. Go to the Regional Data Center, and click Cost of Living. The calculator allows you to determine the level of income you would need to move to Shreveport and maintain your current standard of living based on the Cost of Living Index. For example, if you earned $50,000 in Dallas-Fort Worth you would only need to earn $43,829 in Shreveport to enjoy a comparable standard of living. The following chart shows how Shreveport-Bossier compares with competing communities.



Mayor Tyler: Cross Bayou project too good to miss August 25, 2017 Ollie Tyler, Op-Ed Contributer



There has been a lot of discussion over the last few days about the proposed multi-use development along Cross Bayou. I want to weigh in on the discussion and let the citizens know why I believe this is important for our city. This project is much more than a sports complex. It is a mixed-use development that would include private investment for a much-needed a 200-room key hotel and multi-family residential to energize downtown, and office space along with retail and restaurant amenities. This project would expand our riverfront development from Festival Plaza and the Shreveport Aquarium to Cross Bayou. This plan is part of the much larger citizen-inspired Shreveport-Caddo Master Plan. The master plan, which was formally adopted by the City Council and Caddo Parish Commission, involved input from more than 1,000 citizens. It specifically cites the revitalization of Cross Bayou as a driver to spur economic development. Other cities across the country have used their natural waterways as a catalyst to grow their economy. When we received the invitation to respond to the NBA’s New Orleans Pelicans’ request for proposal for their G-League team, my first questions were, “Can our city support this? And, is it good for our community?” So, I charged my staff with getting those questions answered. As my staff did the due diligence, private partners came to us offering to develop a multi-use area surrounding a sports complex for the Pelicans.

As the leader of this city, when I considered the potential this project could have on improving the economic landscape in our entire city and in our region, I would have been remiss to single-handedly dismiss this opportunity and not at least bring it forth for legislative consideration. My vision that Shreveport become a thriving city where every citizen is afforded a safe environment, economic opportunity, education and training, and a great quality of life is still paramount for this administration. To that effort, we have made some great strides and will continue to do so throughout my term. This administration is not asking citizens to choose between infrastructure improvements, safety or economic development in our city. I truly believe that our citizens deserve all – an investment in infrastructure and public safety, as well as job creation. This type of growth equates to an increased quality of life for today’s citizens as well as for future generations. Over the last two-and-half years, we have spent more than $46 million in street improvements and approximately $150 million in completed and ongoing water and sewer projects. This administration has also invested in the Shreveport Police Department to combat crime with $4.5 million for new police cruisers over the past two years, $150,000 in added overtime this year, 2 percent raises each year and more officers on the streets with a projected 50 new police recruits this year. One of the best ways to combat crime in any community is to provide economic development opportunities. Job creation and growth are known commodities and influencers in decreasing criminal activity. The funds that would be utilized for the sports complex were already specifically dedicated for the purpose of economic development along our riverfront. There would be no new taxes or costs to citizens. The City of Shreveport will seek revenue bonds backed by the Riverfront Development Fund to finance the sports complex. We must invest in ourselves in order to grow our city. On this project we have private investors who are ready to bring outside dollars and expertise into our community. The G League is also backed by major partners including Gatorade, Nike, the NBA and the Benson Family. Never before has a sports team in our area had the national support that comes with the NBA Pelican’s G-League. These partners have come to the table with an understanding that if the city invests in them, they have to invest in our city.



Corporate Realty, an organization with a proven track record of success in similar markets, will work as a private partner to develop the mixed-use properties to complement the sports complex. Their private investment will exceed $100 million and will invigorate a section of our city that currently generates no revenue for its citizens. The construction of a development like this means jobs and opportunity, and it provides an avenue to touch countless lives and to lift our entire region. I sincerely believe that when the outside world sees that the City of Shreveport is taking such bold steps, it will take note and other investments will follow. Some would question if this area can support sports. The citizens have supported quality sporting events in the past and will continue to do so with the professional, exciting games that the NBA G League team would bring to the area. Look at the past success of the Shreveport Captains when they were affiliated with the San Francisco Giants. The Pelicans believe in Shreveport. The Benson family believes in Shreveport. The NBA believes in Shreveport. Corporate Realty believes in Shreveport. Now it’s time we all come together and believe in ourselves. I need your support to positively impact Shreveport for our children, our grandchildren and for future generations. Ollie Tyler is mayor of Shreveport.



5. DEMOGRAPHICS



Demographic and Income Comparison Profile


6. ABOUT SVN®



Recent SFR Sales Experience (Select Transactions)

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

Pleasant Grove SFRs Dallas, TX Value Add October 2015

Fort Worth SFRs Fort Worth, TX Stable October 2015

Village Park Fort Worth, TX New Construction January 2015


Disclaimer

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.


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