TIMBERCREEK APARTMENTS6929 Timbercreek Drive • San Antonio, TX 78227
Offering Memorandum
N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E
Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap Real Estate Investment Services, Inc. ("Marcus & Millichap") and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.
THE TEXAS REAL ESTATE COMMISSION (TREC) REGULATES REAL ESTATE BROKERS AND SALES AGENTS, REAL ESTATE INSPECTORS,HOME WARRANTY COMPANIES, EASEMENT AND RIGHT-OF-WAY AGENTS AND TIMESHARE INTEREST PROVIDERS. YOU CAN FIND MORE INFORMATION AND CHECK THE STATUS OF A LICENSE HOLDER AT WWW.TREC.TEXAS.GOV. YOU CAN SEND A COMPLAINT AGAINST A LICENSE HOLDER TO TREC. A COMPLAINT FORM IS AVAILABLE ON THE TREC WEBSITE. TREC ADMINISTERS TWO RECOVERY FUNDS WHICH MAY BE USED TO SATISFY A CIVIL COURT JUDGMENT AGAINST A BROKER, SALES AGENT, REAL ESTATE INSPECTOR, OR EASEMENT OR RIGHT-OF-WAY AGENT, IF CERTAIN REQUIREMENTS ARE MET. IF YOU HAVE QUESTIONS OR ISSUES ABOUT THE ACTIVITIES OF A LICENSE HOLDER, THE COMPLAINT PROCESS OR THE RECOVERY FUNDS, PLEASE VISIT THE WEBSITE OR CONTACT TREC AT:
TEXAS REAL ESTATE COMMISSIONP.O. BOX 12188AUSTIN, TEXAS 78711-2188(512) 936-3000
Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporations logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.
ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.
TIMBERCREEK APARTMENTSSan Antonio, TXACT ID Z0490067
TABLE OF CONTENTS
SECTION
INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map
FINANCIAL ANALYSIS 02 Rent Roll Summary
Rent Roll Detail
Operating Statement
Notes
Pricing Detail
Acquisition Financing
Growth Rate Projections
Cash Flow
MARKET COMPARABLES 03 Sales Comparables
Rent Comparables
MARKET OVERVIEW 04 Market Analysis
Demographic Analysis
TIMBERCREEK APARTMENTS
TIMBERCREEK APARTMENTS
INVESTMENT
OVERVIEW
TIMBERCREEK APARTMENTS
#
EXECUTIVE SUMMARY
OFFERING SUMMARY
MAJOR EMPLOYERS
EMPLOYER # OF EMPLOYEES
Boeing 4,518
USAF Medical Center 4,000
Wilford Hall Medical Center 3,021
SWRI 2,683
Air Force US Dept of 2,595
Parsons Government Services Inc 1,510
Afiwc/Scs 1,200
Esparza Elementary School 800
St Mary’s Univ San Antonio Texas 800
US Dept of Air Force 762
St Marys University 750
Qvc San Antonio LLC 600
DEMOGRAPHICS
1-Miles 3-Miles 5-Miles
2017 Estimate Pop 16,072 100,168 296,177
2010 Census Pop 14,948 91,923 270,720
2017 Estimate HH 4,834 30,639 91,768
2010 Census HH 4,588 28,605 85,231
Median HH Income $39,613 $40,907 $43,658
Per Capita Income $14,287 $15,646 $17,528
Average HH Income $47,489 $50,635 $54,927
UNIT MIX
NUMBEROF UNITS UNIT TYPE APPROX.
SQUARE FEET
6 Efficiency 525
18 1 Bed / 1 Bath 725
1 2 Bed / 1 Bath 800
8 2 Bed / 2 Bath 900
33 Total 24,200
VITAL DATA
Price $1,800,000 CURRENT YEAR 1
Down Payment 35% / $630,000 CAP Rate 5.65% 8.08%
Loan Amount $1,170,000 GRM 8.01 6.38
Loan Type Proposed New Net Operating Income $101,783 $145,364
Interest Rate / Amortization 5.25% / 30 Years Net Cash Flow After Debt Service 3.85% / $24,254 10.77% / $67,835
Price/Unit $54,545 Total Return 6.47% / $40,751 13.53% / $85,220
Price/SF $74.38
Number of Units 33
Rentable Square Feet 24,200
Year Built 1973
Lot Size 1.01 Acre(s)
5
PROPERTY OVERVIEW
TIMBERCREEK APARTMENTS
PROPERTY OVERVIEW
Marcus & Millichap is pleased to exclusively offer the Timbercreek Apartments, a garden-style, multifamily asset located in west central San Antonio. Built in 1973,
Timbercreek Apartments consist of 33 units within seven buildings. The seller has owned the property for over 20 years and has self-managed with the help of a direct-hire
onsite manager. There are 53 parking spaces, a central, gated swimming pool area, a management/leasing office and an on-site clothes care facility.
This is a true value-add opportunity with significant upside. Rents are well-below market, in some cases over $100/unit/month. Based on a five year hold, a new owner can
potentially achieve returns of 18 percent cash-on-cash and a 24 percent IRR.
Construction is concrete slab with brick and wood-siding on the exteriors. Almost $200,000 in improvements have been completed over the last 12 months including tear-off
replacement of all flat roofs with new metal trim, all-new iron railing on balconies and stairwells, new fascia, gutters and downspouts, balcony supports, new concrete parking
blocks and lot striping. There are three different floor plans consisting of efficiency, one-bed/one-bath, and two-bed/one-bath units. Sizes range from 525-square-foot to 900-
square-foot units. Interior amenities include a mix of vinyl-plank, tile and carpeted flooring, Built-in shelving and cabinets, full appliance packages, and central heat / air
conditioning. Units are all-electric, and natural gas service is for the laundry room and the newer hot water boiler.
Timbercreek is conveniently located off of West Military Drive and is central to Highway 151, Highway 90, and Loop 410, providing easy access to all parts of the city. It is a
short walk to bus transportation and groceries. The asset is also within close proximity to Lackland Air Force Base and Westwood Village Park, which includes a playground
and public pool. The immediate submarket is home to apartment communities and single-family homes.
PROPERTY OVERVIEW
§ Below-Market Rents - $100+ Per Unit
§ Significant Upside through Unit Upgrades
§ Consistently-High Occupancy
§ Recently Replaced Roof
§ Via Metro Stops at Property
§ Prime Location Just Off Loop 410
6
TIMBERCREEK APARTMENTS
PROPERTY SUMMARY
OFFERING SUMMARY
PROPOSED FINANCING
First Trust Deed
Loan Amount $1,170,000
Loan Type Proposed New
Interest Rate 5.25%
Amortization 30 Years
Loan Term 10 Years
Loan to Value 65%
Debt Coverage Ratio 1.31
THE OFFERING
Property Timbercreek Apartments
Price $1,800,000
Property Address 6929 Timbercreek Drive, San Antonio, TX
SITE DESCRIPTION
Number of Units 33
Year Built/Renovated 1973
Rentable Square Feet 24,200
Lot Size 1.01 Acre(s)
Type of Ownership Fee Simple
7
REGIONAL MAP
TIMBERCREEK APARTMENTS
8
LOCAL MAP
TIMBERCREEK APARTMENTS
9
AERIAL PHOTO
TIMBERCREEK APARTMENTS
10
TIMBERCREEK APARTMENTS
11
FINANCIAL
ANALYSIS
FINANCIAL ANALYSIS
TIMBERCREEK APARTMENTS
RENT ROLL SUMMARY
12
FINANCIAL ANALYSIS
TIMBERCREEK APARTMENTS
13
RENT ROLL DETAIL
FINANCIAL ANALYSIS
TIMBERCREEK APARTMENTS
14
RENT ROLL DETAIL
FINANCIAL ANALYSIS
TIMBERCREEK APARTMENTS
OPERATING STATEMENT
15
FINANCIAL ANALYSIS
TIMBERCREEK APARTMENTS
NOTES
16
FINANCIAL ANALYSIS
TIMBERCREEK APARTMENTS
PRICING DETAIL
17
FINANCIAL ANALYSIS
TIMBERCREEK APARTMENTS
GROWTH RATE PROJECTIONS
18
FINANCIAL ANALYSIS
TIMBERCREEK APARTMENTS
CASH FLOW
19
TIMBERCREEK APARTMENTS
MARKET
COMPARABLES
TIMBERCREEK APARTMENTS
SALES COMPARABLES MAP
21
TIMBERCREEK APARTMENTS(SUBJECT)
Siesta Lane
Starlight Apartments
Wood Hollow
The Palms Apartments
El Mirador
The Graduate
SALES COMPARABLES
IN ESCROW COMPARABLES
1
2
3
4
5
6
22
PROPERTY NAME
TIMBERCREEK APARTMENTS
SALES COMPARABLES
TimbercreekApartments
Siesta Lane StarlightApartments
Wood Hollow The PalmsApartments
El Mirador TheGraduate
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
Avg. 8.01%
Avg. 9.29%
Average Cap Rate
TimbercreekApartments
Siesta Lane StarlightApartments
Wood Hollow The PalmsApartments
El Mirador TheGraduate
0.00
0.90
1.80
2.70
3.60
4.50
5.40
6.30
7.20
8.10
9.00
Avg. 5.68
Avg. 5.33
Average GRM
SALES COMPARABLES
IN ESCROW COMPARABLES
SALES COMPS AVG
IN ESCROW COMPS AVG
23
PROPERTY NAME
TIMBERCREEK APARTMENTS
SALES COMPARABLES
TimbercreekApartments
Siesta Lane StarlightApartments
Wood Hollow The PalmsApartments
El Mirador TheGraduate
$0.00
$9.30
$18.60
$27.90
$37.20
$46.50
$55.80
$65.10
$74.40
$83.70
$93.00
Avg. $65.23
Avg. $48.61
Average Price Per Square Foot
TimbercreekApartments
Siesta Lane StarlightApartments
Wood Hollow The PalmsApartments
El Mirador TheGraduate
$0
$6,000
$12,000
$18,000
$24,000
$30,000
$36,000
$42,000
$48,000
$54,000
$60,000
Avg. $42,392
Avg. $29,688
Average Price Per Unit
SALES COMPARABLES
IN ESCROW COMPARABLES
SALES COMPS AVG
IN ESCROW COMPS AVG
PROPERTY NAME
MARKETING TEAM
TIMBERCREEK APARTMENTS
SALES COMPARABLES
rentpropertyname1
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SALES COMPARABLES IN ESCROW COMPARABLES
Units Unit Type
Offering Price: $1,800,000 6 Efficiency
Price/Unit: $54,545 18 1 Bed 1 Bath
Price/SF: $74.38 1 2 Bed 1 Bath
CAP Rate: 6.06% 8 2 Bed 2 Bath
GRM: 7.73
Total No. of Units: 33
Year Built: 1973
Underwriting Criteria
Income $227,634 Expenses $118,641
NOI $108,993 Vacancy ($11,649)
TIMBERCREEK APARTMENTS6929 Timbercreek Dr, San Antonio, TX, 78227
1
Close Of Escrow: 1/31/2018
Days On Market: 79
Sales Price: $1,215,000
Price/Unit: $50,625
Price/SF: $55.99
CAP Rate: 7.79%
GRM: 5.77
Total No. of Units: 24
Year Built: 1968
Underwriting Criteria
Expenses $91,551
SIESTA LANE111 Siesta Ln, San Antonio, TX, 78201
Units Unit Type
Close Of Escrow: 1/19/2018 24 1 Bdr 1 Bath
Days On Market: 73
Sales Price: $947,000
Price/Unit: $39,458
Price/SF: $91.34
CAP Rate: 7.81%
GRM: 6.13
Total No. of Units: 24
Year Built: 1972
2
STARLIGHT APARTMENTS347 Ware Blvd, San Antonio, TX, 78221
PROPERTY NAME
MARKETING TEAM
TIMBERCREEK APARTMENTS
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
rentpropertyname1
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SALES COMPARABLES IN ESCROW COMPARABLES
Close Of Escrow: 10/26/2017
Days On Market: 168
Sales Price: $25,750,000
Price/Unit: $47,335
Price/SF: $74.06
CAP Rate: 7.64%
GRM: 5.80
Total No. of Units: 544
Year Built: 1974
Underwriting Criteria
Expenses $2,030,224
Vacancy $397,732
3
WOOD HOLLOW10362 Sahara Street, San Antonio, TX, 78216
4
Units Unit Type
Close Of Escrow: 10/19/2017 16 1 Bdr 1 Bath
Sales Price: $5,425,000 68 2 Bdr 1 Bath
Price/Unit: $43,750 40 3 Bdr 1 Bath
Price/SF: $54.61
CAP Rate: 7.95%
Total No. of Units: 124
Year Built: 1972
Underwriting Criteria
Income $1,090,800 Vacancy $69,588
THE PALMS APARTMENTS3735 East Commerce Street, San Antonio, TX, 78219
Units Unit Type
Close Of Escrow: 7/18/2017 8 2 Bdr Bath
Days On Market: 143 16 1 Bdr Bath
Sales Price: $739,000
Price/Unit: $30,792
Price/SF: $50.14
CAP Rate: 8.84%
GRM: 5.00
Total No. of Units: 24
Year Built: 1985
Underwriting Criteria
Expenses $53,783
5
EL MIRADOR3518 Grant Avenue, San Antonio, TX, 78201
PROPERTY NAME
MARKETING TEAM
TIMBERCREEK APARTMENTS
SALES COMPARABLES
rentpropertyname1
rentpropertyaddress1
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SALES COMPARABLES IN ESCROW COMPARABLES
Units Unit Type
In Escrow 30 1 Bdr 1 Bath
Days On Market: 222 2 2 Bdr 1 Bath
List Price: $950,000
Price/Unit: $29,688
Price/SF: $48.61
CAP Rate: 9.29%
GRM: 5.33
Total No. of Units: 32
Year Built: 1970
Underwriting Criteria
Income $225,000 Expenses $126,523
NOI $87,227 Vacancy $11,250
6
NOTESProperty Listed at 7.36 % CAP, Repair credits and agreed upon price was $950,000.
THE GRADUATE3122 Culebra Road, San Antonio, TX, 78228
8
TIMBERCREEK APARTMENTS
RENT COMPARABLES MAP
TIMBERCREEK APARTMENTS(SUBJECT)
Marbach Manor
Lufberry Apartments
Stepping Stone
Westwind Apartments
Casablanca
Hacienda Apartments
4
7
8
9
11
20
12
14
15
16
17
13
18
10
4
1
2
3
5
6
27
PROPERTY NAME
TIMBERCREEK APARTMENTS
RENT COMPARABLES
28
AVERAGE OCCUPANCY
TimbercreekApartments
MarbachManor
LufberryApartments
SteppingStone
WestwindApartments
Casablanca HaciendaApartments
WestwoodPlaza
AragonPlace
MilitaryVillage
0
10
20
30
40
50
59
69
79
89
99Avg. 92.29%
PROPERTY NAME
TIMBERCREEK APARTMENTS
RENT COMPARABLES
29
AVERAGE RENT - MULTIFAMILY
Timber
cree
k
Apartm
ents
Mar
bach
Man
or
Lufb
erry
Apartm
ents
Stepping
Stone
Wes
twind
Apartm
ents
Casab
lanca
Hacien
da
Apartm
ents
Wes
twoo
d
Plaza Ara
gon
Place
Milit
ary
Village
$0
$70
$140
$210
$280
$350
$420
$490
$560
$630
$700 Avg. $623
Efficiencies
Timber
cree
k
Apartm
ents
Mar
bach
Man
or
Lufb
erry
Apartm
ents
Stepping
Stone
Wes
twind
Apartm
ents
Casab
lanca
Hacien
da
Apartm
ents
Wes
twoo
d
Plaza Ara
gon
Place
Milit
ary
Village
$0
$80
$160
$240
$320
$400
$480
$560
$640
$720
$800
Avg. $642
1 Bedroom
Timber
cree
k
Apartm
ents
Mar
bach
Man
or
Lufb
erry
Apartm
ents
Stepping
Stone
Wes
twind
Apartm
ents
Casab
lanca
Hacien
da
Apartm
ents
Wes
twoo
d
Plaza Ara
gon
Place
Milit
ary
Village
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
Avg. $784
2 Bedroom
PROPERTY NAME
MARKETING TEAM
TIMBERCREEK APARTMENTS
RENT COMPARABLES
rentpropertyname1
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30
YEAR BUILT: 1973
rentpropertyname1rentpropertyaddress1
Unit Type Units SF Rent Rent/SF
Efficiency 6 525 $499 $0.95
1 Bed 1 Bath 18 725 $590 $0.81
2 Bed 1 Bath 1 800 $550 $0.69
2 Bed 2 Bath 8 900 $656 $0.73
Total/Avg. 33 733 $588 $0.80
TIMBERCREEK APARTMENTS6929 Timbercreek Dr, San Antonio, TX, 78227
OCCUPANCY: 93% | YEAR BUILT: 1969
1
Unit Type Units SF Rent Rent/SF
Studio 1 Bath 2 515 $679 $1.32
1 Bdr 1 Bath 33 624 $745-$822 $1.26
2 Bdr 1 Bath 48 850 $844 $0.99
2 Bdr 2 Bath 16 990 $852 $0.86
2 Bdr 1.5 Bath 16 1,150 $912 $0.79
3 Bdr 2 Bath 8 1,255 $969 $0.77
Total/Avg. 123 867 $843 $0.97
MARBACH MANOR7203 Marbach Rd, San Antonio, TX, 78227
2
YEAR BUILT: 1975
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 1 615 $541 $0.88
2 Bdr 1 Bath 15 750 $610 $0.81
Total/Avg. 16 742 $606 $0.82
LUFBERRY APARTMENTS2907 Observation Dr, San Antonio, TX, 78227
PROPERTY NAME
MARKETING TEAM
TIMBERCREEK APARTMENTS
RENT COMPARABLES
rentpropertyname1
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YEAR BUILT: 1985
3
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 56 591 $589 $1.00
2 Bdr 2 Bath 24 814 $710 $0.87
Total/Avg. 80 658 $625 $0.95
STEPPING STONE7737 Skolout Street, San Antonio, TX, 78227
YEAR BUILT: 1967
4
Unit Type Units SF Rent Rent/SF
Studio 1 Bath 12 400 $640 $1.60
1 Bdr 1 Bath 25 750 $709 $0.95
2 Bdr 1 Bath 17 975 $889 $0.91
Total/Avg. 54 743 $750 $1.01
WESTWIND APARTMENTS2903 Colt Drive, San Antonio, TX, 78227
5
YEAR BUILT: 1973
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 56 500 $611 $1.22
2 Bdr 1 Bath 4 700 $832 $1.19
Total/Avg. 60 513 $626 $1.22
CASABLANCA 2307 Pinn Road, San Antonio, TX, 78227
PROPERTY NAME
MARKETING TEAM
TIMBERCREEK APARTMENTS
RENT COMPARABLES
rentpropertyname1
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rentpropertyname1
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YEAR BUILT: 1974
6
Unit Type Units SF Rent Rent/SF
1 Bdr 1 Bath 48 734 $550 $0.75
2 Bdr 2 Bath 156 920 $742 $0.81
Total/Avg. 204 876 $697 $0.80
HACIENDA APARTMENTS2431 Pinn Road, San Antonio, TX, 78227
TIMBERCREEK APARTMENTS
MARKET
OVERVIEW
MARKET OVERVIEW
SAN ANTONIOOVERVIEW
1
The San Antonio metro is located in the southern portion of central Texas, covering 412 square miles and straddling the Interstate 35 Corridor, one of the fastest-growing areas in the state. The metro encompasses eight counties: Bandera, Atascosa, Kendall, Comal, Bexar, Guadalupe, Medina and Wilson. Situated only 145 miles from Nuevo Laredo, Mexico, San Antonio is an easy drive on Interstate 35 from the border and serves as a major gateway between the United States and Mexico. The area is further enhanced by an extensive transportation network that provides shipping options to domestic and international markets as well as the Eagle Ford Shale formation that runs through Atascosa and Wilson counties. San Antonio is the most populous city in the metro, housing more than 1.4 million residents.
MARKET OVERVIEW
METRO HIGHLIGHTS
STRONG POPULATION GROWTHThe metro is maintaining population growth and household formation well above the national level and generating the need for housing options.
ROBUST JOB CREATIONMore than 47,000 jobs are expected to be created though 2022. Many positions will be related to Eagle Ford, one of the largest oil and gas developments in the world.
LOW COST OF LIVINGMore affordable home prices compared with other nearby markets and no state personal income tax contribute to a lower the cost of living.
TIMBERCREEK APARTMENTS
MARKET OVERVIEW
ECONOMY§ The economy is anchored by the industries of healthcare, tourism and national defense. § The Eagle Ford Shale deposit has contributed to the diversification of jobs into the energy
sector. Valero’s corporate headquarters are here, as well as NuStar Energy, Halliburton, NOV, Baker-Hughes and Tesoro.
§ Lackland Air Force Base, Randolph Air Force Base, Fort Sam Houston and Camp Bullis are among the many military installations located in the metro.
§ An important component of the healthcare industry is South Texas Medical Center, a conglomerate of hospitals, clinics and research and higher-education facilities.
SHARE OF 2017 TOTAL EMPLOYMENT
MAJOR AREA EMPLOYERS
South Texas Medical Center
USAA
Wells Fargo
Baptist Health System
Southwest Research Institute
Methodist Healthcare System
JPMorgan Chase
Christus Santa Rosa Health System
Toyota Motor Manufacturing Texas
H-E-B* Forecast
2
MANUFACTURING5%
GOVERNMENT
HEALTH SERVICESEDUCATION AND
+OTHER SERVICES
4%
LEISURE AND HOSPITALITY FINANCIAL ACTIVITIES
17%AND UTILITIES
TRADE, TRANSPORTATION CONSTRUCTION
PROFESSIONAL ANDBUSINESS SERVICES
2%INFORMATION
13%
5%
17% 13% 8%
16%
TIMBERCREEK APARTMENTS
MARKET OVERVIEW
DEMOGRAPHICS
SPORTS
EDUCATION
ARTS & ENTERTAINMENT
§ The metro is expected to add nearly 177,500 people through 2022, resulting in the formation of roughly 88,400 households.
§ A relatively youthful population contributes to a homeownership rate of 63 percent, which compares with the national rate of 64 percent.
§ Roughly 26 percent of residents age 25 and older hold a bachelor’s degree; of those residents, 9 percent also have earned a graduate or professional degree.
Culture and history abounds in such places as La Villita, the Spanish Governor’s Palace,
San Fernando Cathedral, Jose Antonio Navarro State Historical Park and the Alamo.
Tradition blends with more modern attractions, such as the River Walk, a 2.5-mile stretch
of parks, cafes, nightclubs and hotels. New upscale apartments are being built along the
walk, bringing more residents into the city. The metro is also home to numerous sporting
events and teams, including the NBA’s San Antonio Spurs, the WNBA’s San Antonio Silver
Stars, the AHL’s Rampage and AA baseball’s Missions. Arena football is offered by the San
Antonio Talons, and the University of Texas San Antonio Roadrunners play NCAA Division
1 football. Art enthusiasts can visit many museums and cultural centers in San Antonio.
QUALITY OF LIFE
3
2017 Population by Age
0-4 YEARS
7%5-19 YEARS
22%20-24 YEARS
7%25-44 YEARS
28%45-64 YEARS
24%65+ YEARS
12%
* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau
TIMBERCREEK APARTMENTS
34.52017
MEDIAN AGE:
U.S. Median:
37.8
$54,400 2017 MEDIAN
HOUSEHOLD INCOME:
U.S. Median:
$56,300
2.4M2017
POPULATION:
Annual Growth2017-2022*:
7.4%
849K2017
HOUSEHOLDS:
10.4%
Annual Growth2017-2022*:
37
Shift in new supply on the horizon. Downtown San Antonio is ripe with new development as city leaders focus on bringing jobs back to the area. Several companies have announced expansion plans in the core, and a number of mixed-use projects are planned or underway to revitalize the nearby area. Apartment developers have focused on northern submarkets for the past few years, adding nearly 17,000 units to stock in the outer northern and western submarkets since 2012, compared with approximately 4,300 in downtown and the area just north of downtown during the span. Limited new supply and healthy demand for housing have resulted in these submarkets recording the lowest vacancy rates in the metro at close to 6 percent. While new units coming online this year remain heavily concentrated in the far northwest and far west submarkets, deliveries are shifting as Central San Antonio is slated to receive an additional 2,400 units over the next two years. Demand for these units will remain strong as employers continue to create jobs downtown.
Apartment rents keep rising at a steady pace. San Antonio boasts the most affordable rents of Texas’ four largest metros, despite the average rising at an average pace of 3.6 percent over the past five years. While other markets have averaged stronger gains, a dramatic slowdown is occurring in some metros. As rents continue to rise at a healthy clip in San Antonio, investors are provided with a stable stream of cash flow.
Downtown Employment GrowthEncourages Apartment Development
SAN ANTONIO METRO AREA
* Cap rate trailing 12-month average through 1Q; Treasury rate as of March 29thSources: CoStar Group, Inc.; Real Capital Analytics
TIMBERCREEK APARTMENTS
Investment Trends
Multifamily 2018 Outlook
6,200 units
will be completed
3.4% increase in
effective rents
40 basis point
decrease in vacancy
Construction:
Rents:
Vacancy:
Deliveries fall to a four-year low during 2018, following the delivery of more than 7,300 units last year, a 15-year high.
Rent growth strengthens from last year’s 2.4 percent rise, with the average reaching $965 per month during 2018.
The absorption of more than 6,500 apartments this year outweighs deliveries during the span, pushing down vacancy to 7.0 percent.
• Employers are moving back downtown and several mixed-use projects are breaking ground or underway, reviving the area. Apartments nearby will be in high demand, and those with upside potential will be highly sought after.
• A highly competitive bidding environment in other major Texas markets could prompt additional buyers to seek assets in San Antonio, where cap rates are typically higher and average in the high-6 percent area.
• Sales were bifurcated over the past 12 months, with transactions rising sharply for properties priced between $1 million and $10 million, or over $20 million. While the largest share of trades occurred in Northwest San Antonio during the period, several submarkets garnered stronger interest than the previous annual period, such as West, North Central and Southwest San Antonio.
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• Approximately 19,700 positions were created over the past 12 months, led by 4,300 jobs generated in the construction sector and an additional 3,700 workers in trade, transportation and utilities.
• Unemployment in the metro declined 50 basis points to 3.4 percent during the first quarter of 2018, remaining below the national rate by 70 basis points.
EMPLOYMENT
• Of the 1,600 apartments completed during the first quarter of 2018, approximately 770 were brought online in the area near Interstate 10 and Loop 1604.
• Nearly 8,300 units were underway at the end of March, and though deliveries will remain concentrated in Far Northwest and West San Antonio this year, construction is rising in Southwest and Central San Antonio.
CONSTRUCTION
• Apartment vacancy has been on the rise for the past two years, reaching 7.6 percent in the first quarter of 2018. One year ago, the rate increased 50 basis points.
• Vacancy is highest in Class C properties, resting at 7.7 percent in March. The rate rose nearly 200 basis points over the past two years, for the largest advance among property classes.
VACANCY
• Rent growth remained steady over the past year, with the average effective rent rising to $936 per month in the first quarter of 2018.
• Class C rent growth during the past 12 months was the strongest among property classes, with the average rate rising 8.1 percent year over year to $789 per month.
RENTS
SAN ANTONIO METRO AREA
increase in effective rents Y-O-Y
2.9%basis point increase in vacancy Y-O-Y
70units completed Y-O-Y
7,400increase in totalemployment Y-O-Y
1.9%
* Forecast
TIMBERCREEK APARTMENTS
1Q18 – 12-Month Period
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Sales Surge As Class A Properties Attract Buyers
Outlook: Several mixed-used developments in East San Antonio are helping transform the area. Investors will seek apartment properties nearby.
Vacancy Rate
Y-O-YBasis Point
Change
SubmarketEffective
RentY-O-Y %Change
North Central San Antonio
6.1% 100 $961 0.3%
Central San Antonio 6.3% 70 $1,131 0.0%
Airport Area 6.5% -40 $864 0.2%
Far West San Antonio 6.8% 40 $971 3.5%
Far Northwest San Antonio
7.0% 40 $1,105 4.0%
Southwest San Antonio 7.1% 90 $812 6.0%
Northwest San Antonio 7.4% 80 $903 2.1%
Far N Central San Antonio
7.6% -40 $1,176 2.3%
New Braunfels/Schertz/Universal City
7.6% 180 $1,010 4.9%
South San Antonio 7.7% -20 $814 4.8%
Overall Metro 7.6% 70 $936 2.9%
Submarket Trends
Lowest Vacancy Rates 1Q18
Sales Trends
SAN ANTONIO METRO AREA
• Transaction velocity grew 18 percent over the past four quarters, boosted by sales of Class A assets priced over $20 million. These properties traded at an average cap rate in the high-5 percent area during the year.
• The average price per unit advanced at the strongest pace this decade over the past year, rising 10 percent to approximately $92,100 per door.
* Trailing 12 months through 1Q18Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics
TIMBERCREEK APARTMENTS
*Mortgage payments based on quarterly median home price with a 30-year fixed-rate conventional mortgage, 90% LTV, taxes, insurance and PMI. **2017-2022 Annualized Rate
40
TIMBERCREEK APARTMENTS
SAN ANTONIO METRO AREA
• Fed raises benchmark interest rate, plots path for additional increases. The Federal
Reserve increased the federal funds rate by 25 basis points, lifting the overnight lending rate
to 1.5 percent. While the Fed noted that the inflation outlook had moderated in recent
months, an upgraded economic forecast factoring in recent tax cuts and a rollback in
regulation strengthened growth projections for the next two years. As a result, the Fed has
guided toward two additional rate hikes this year, while setting the stage for as many as four
increases in 2019.
• Lending costs rise alongside Fed rate increase. As the Federal Reserve lifts interest rates,
lenders will face a rising cost of capital, which may lead to higher lending rates for investors.
However, in an effort to compete for loan demand, lenders may also choose to absorb a
portion of the cost increases. While higher borrowing costs may prompt buyers to seek
higher cap rates, the positive economic outlook should provide rent growth that outpaces
inflation over the coming year. As a result, sellers remain committed to higher asking prices,
which has begun to widen an expectation gap as property performance and demand trends
remain positive.
• The capital markets environment continues to be highly competitive. Government
agencies continue to consume the largest share, just slightly over 50 percent, of the
apartment lending market. National and regional banks control approximately a quarter of
the market. Global markets and foreign central banks are keeping pressure down on long-
term interest rates. Pricing resides in the 4 percent realm with maximum leverage of 75
percent. Portfolio lenders will typically require loan-to-value ratios closer to 70 percent with
interest rates in the high-3 to mid-4 percent range. The passage of tax reform and rising
fiscal stimulus will keep the U.S. economy growing strongly and rental demand will remain
high with the national apartment vacancy rate at 5 percent at the end of 2017.
Include sales $2.5 million and greaterSources: CoStar Group, Inc.; Real Capital Analytics
Capital Markets
PROPERTY NAME
MARKETING TEAM
TIMBERCREEK APARTMENTS
DEMOGRAPHICS
Source: © 2017 Experian
Created on July 2018
POPULATION 1 Miles 3 Miles 5 Miles§ 2022 Projection
Total Population 15,796 106,534 315,174
§ 2017 Estimate
Total Population 16,072 100,168 296,177
§ 2010 Census
Total Population 14,948 91,923 270,720
§ 2000 Census
Total Population 14,378 72,676 213,266
§ Daytime Population
2017 Estimate 19,929 94,253 263,754
HOUSEHOLDS 1 Miles 3 Miles 5 Miles§ 2022 Projection
Total Households 4,967 33,981 101,980
§ 2017 Estimate
Total Households 4,834 30,639 91,768
Average (Mean) Household Size 3.20 3.01 3.02
§ 2010 Census
Total Households 4,588 28,605 85,231
§ 2000 Census
Total Households 4,458 22,563 65,608
Growth 2015-2020 2.75% 10.91% 11.13%
HOUSING UNITS 1 Miles 3 Miles 5 Miles§ Occupied Units
2022 Projection 4,967 33,981 101,980
2017 Estimate 5,047 31,366 94,177
Owner Occupied 3,095 15,812 51,582
Renter Occupied 1,739 14,826 40,186
Vacant 213 727 2,409
§ Persons In Units
2017 Estimate Total Occupied Units 4,834 30,639 91,768
1 Person Units 18.35% 22.56% 21.62%
2 Person Units 25.09% 24.65% 25.17%
3 Person Units 17.56% 18.33% 18.16%
4 Person Units 16.09% 15.41% 16.16%
5 Person Units 12.10% 10.12% 10.07%
6+ Person Units 10.82% 8.92% 8.81%
HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles§ 2017 Estimate
$200,000 or More 0.54% 0.76% 1.09%
$150,000 - $199,000 0.55% 1.27% 1.90%
$100,000 - $149,000 5.02% 6.97% 8.90%
$75,000 - $99,999 10.81% 9.94% 10.98%
$50,000 - $74,999 22.94% 21.54% 21.34%
$35,000 - $49,999 17.27% 17.34% 15.66%
$25,000 - $34,999 10.53% 12.80% 12.09%
$15,000 - $24,999 17.05% 14.38% 12.63%
Under $15,000 15.30% 15.01% 15.38%
Average Household Income $47,489 $50,635 $54,927
Median Household Income $39,613 $40,907 $43,658
Per Capita Income $14,287 $15,646 $17,528
POPULATION PROFILE 1 Miles 3 Miles 5 Miles§ Population By Age
2017 Estimate Total Population 16,072 100,168 296,177
Under 20 32.95% 32.82% 32.34%
20 to 34 Years 22.19% 27.48% 26.09%
35 to 39 Years 6.74% 6.75% 6.83%
40 to 49 Years 12.00% 11.03% 11.40%
50 to 64 Years 14.52% 13.02% 13.81%
Age 65+ 11.61% 8.90% 9.57%
Median Age 31.50 28.75 29.76
§ Population 25+ by Education Level
2017 Estimate Population Age 25+ 9,624 57,144 172,812
Elementary (0-8) 8.20% 7.80% 8.94%
Some High School (9-11) 15.95% 11.93% 12.11%
High School Graduate (12) 34.88% 32.10% 29.40%
Some College (13-15) 23.86% 27.43% 25.54%
Associate Degree Only 6.53% 6.44% 6.81%
Bachelors Degree Only 7.30% 9.62% 10.51%
Graduate Degree 1.28% 2.79% 4.17%
§ Population by Gender
2017 Estimate Total Population 16,072 100,168 296,177
Male Population 48.18% 50.15% 49.79%
Female Population 51.82% 49.85% 50.21%
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IncomeIn 2017, the median household income for your selected geography is $39,613, compare this to the US average which is currently $56,286. The median household income for your area has changed by 29.10% since 2000. It is estimated that the median household income in your area will be $45,516 five years from now, which represents a change of 14.90% from the current year. The current year per capita income in your area is $14,287, compare this to the US average, which is $30,982. The current year average household income in your area is $47,489, compare this to the US average which is $81,217.
PopulationIn 2017, the population in your selected geography is 16,072. The population has changed by 11.78% since 2000. It is estimated that the population in your area will be 15,796.00 five years from now, which represents a change of -1.72% from the current year. The current population is 48.18% male and 51.82% female. The median age of the population in your area is 31.50, compare this to the US average which is 37.83. The population density in your area is 5,120.19 people per square mile.
HouseholdsThere are currently 4,834 households in your selected geography. The number of households has changed by 8.43% since 2000. It is estimated that the number of households in your area will be 4,967 five years from now, which represents a change of 2.75% from the current year. The average household size in your area is 3.20 persons.
EmploymentIn 2017, there are 3,566 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 52.89% of employees are employed in white-collar occupations in this geography, and 46.98% are employed in blue-collar occupations. In 2017, unemployment in this area is 5.72%. In 2000, the average time traveled to work was 27.00 minutes.
Race and EthnicityThe current year racial makeup of your selected area is as follows: 69.42% White, 5.91% Black, 0.05% Native American and 0.91% Asian/Pacific Islander. Compare these to US averages which are: 70.42% White, 12.85% Black, 0.19% Native American and 5.53% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 82.97% of the current year population in your selected area. Compare this to the US average of 17.88%.
PROPERTY NAME
MARKETING TEAM
TIMBERCREEK APARTMENTS
HousingThe median housing value in your area was $80,373 in 2017, compare this to the US average of $193,953. In 2000, there were 2,895 owner occupied housing units in your area and there were 1,563 renter occupied housing units in your area. The median rent at the time was $447.
Source: © 2017 Experian
DEMOGRAPHICS
42
8
TIMBERCREEK APARTMENTS
DEMOGRAPHICS
43
INFORMATION ABOUT BROKERAGE SERVICESTexas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.
TYPES OF REAL ESTATE LICENSE HOLDERS:• A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.
A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):• Put the interests of the client above all others, including the broker’s own interests;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any o�er to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.
A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:
AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.
AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.
AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:
• Must treat all parties to the transaction impartially and fairly;• May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to,
and carry out the instructions of each party to the transaction.• Must not, unless specifically authorized in writing to do so by the party, disclose:
§ that the owner will accept a price less than the written asking price;§ that the buyer/tenant will pay a price greater than the price submitted in a written offer; and§ any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.
AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.
TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.
LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.
Information available at www.trec.texas.govRegulated by the Texas Real Estate CommissionIABS 1-0
11-2-2015
Marcus & Millichap 9002994 [email protected] 972-755-5200Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone
Tim A. Speck 432723 [email protected] 972-755-5200Designated Broker of Firm License No. Email Phone
Craig R. Swanson 538612 [email protected] 512-338-7800Licensed Supervisor of Sales Agent/Associate License No. Email Phone
Sales Agent/Associate’s Name License No. Email Phone
Buyer/Tenant/Seller/Landlord Initials Date44
www.MarcusMillichap.com
Mark V. Diebold
Senior Associate
Member, National Multi Housing GroupSan Antonio OfficeTel: (210) 343-7862
Fax: (210) 343-7810
License: TX 620854
P R E S E N T E D B Y
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