48 unit apartment rehabilitation at 1200 north monroe, amarillo … · 2019. 9. 11. ·...
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WaiWai Properties LLC Multi-Family Residential Real Estate Investors
48 Unit Apartment Rehabilitation at 1200 North Monroe, Amarillo TX
A North Heights Neighborhood Revitalization Project
Current
2015
WaiWai Properties LLC Multi-Family Residential Real Estate Investors
Property Details
Purchase Price: $ 450,000
Estimated Repairs: $1,400,000
Total Cost: $1,850,000
ARV of property $2,500,000 - $2,743,000
48 Units: 46 2-bed/1 bath, existing 2 1-bed/1 bath, possible
Average Unit Size: 568 square feet
Year Built: 1962
Parking: 46 spaces, Parking Variance Approved
Current Status: All units vacant
Targeted tenant: Low income / Section 8
(Image from 2015. See supplied photos for current state.)
Annual Income: Annual Expenses: Annual NOI:
Post Rehabilitation $372,750 $73,450 $299,300 Assuming $675 for 2-bedroom rents and $550 for 1-bedroom rents.
Current Features Rehabilitation Needs
• Strucurally “Good Bones” - exterior CMU walls
• Roof was new in 2013 – excellent condition
• Parking Variance approved – zero required
• Site plan approved in current condition
• Asbestos survey completed
• Stamped architectural drawings completed
• Building Permit application in process
• City Grant Obtained – waiver of permit fees and rebate of City portion of property taxes for 10 years. Currently applies to entity, may be transferrable to another entity.
• Seller financing available
• Electrical
• Plumbing
• Windows and doors
• Fire suppression & alarm system
• Substantial interior rehab work
• Appliances
• HVAC
• Repairs to fire damaged units
• Onsite laundry
Additional Information
Amarillo 2019 Fair Market Rents, used to establish Section 8 payments: Studio $ 553 One bed room $ 654 Two bed room $ 849 Three bed room $1,148 Four bed room $1,293
Source: https://affordablehousingonline.com/housing-search/Texas/Amarillo
WaiWai Properties LLC Multi-Family Residential Real Estate Investors
Market Analysis
Subject Property: 1200 N. Monroe Street, Amarillo TX
Class: C Square Footage: 28908
Units: 48 (46 2-bdrm, 2 1-bdrm) Low Range High Range
New Construction Valuation (per square foot):
$110.00 $120.00
Market Sales Per Unit (range): $31,250.00 $53,333.33
Market Cap Rates: 12% 10%
Low Range High Range Average
Value Using market cap rates (NOI/CAP): $2,494,161 $2,992,993 $2,743,577
Value Using New Construction Valuation: $3,179,880 $3,468,960 $3,324,420
Value Using Amarillo Market Comps: $1,500,000 $2,560,000 $2,030,000
Market Cap Rates
1200 N Monroe Cap Rate Valuation
Cap rate: Property Value
10.00% $ 2,992,992.80
11.00% $ 2,720,902.55
12.00% $ 2,494,160.67
Recent Amarillo sales
Address Units Built Sales Price Price/Unit Sale Date
7101 Wolflin Avenue 360 1984 $19,200,000 $53,333.33 6/19/2017
4215 South Western St. 100 1970 $3,125,000 $31,250.00 7/2/2018
6209 Interstate 40 West 225 1972 $11,750,000 $52,222.22 3/27/2019
203 NW 15th Street 68 1953 $2,200,000 $32,352.94 5/3/2018
5307 Gem Lake Rd. 41 1962 $1,750,000 $42,682.93 9/22/2019
5924 NE 9th Ave 43 1960 $ 1,500,000 $34,883.72 12/15/2018
WaiWai Properties LLC Multi-Family Residential Real Estate Investors
Why Amarillo, Texas
• Population: From 2010 to 2018, steady annual increase from 191,255 to 199,924 Source: https://www.census.gov/quickfacts/fact/table/amarillocitytexas/PST045217
• Texas has only 29 affordable and available rental homes per 100 extremely low income renters Source: http://nlihc.org/gap
o There has not been a low income complex built since 2012 Source: HUD database @ https://lihtc.huduser.gov/
o There is a diversified industry base Source: Data USA (Census Bureau) @ https://datausa.io/profile/geo/amarillo-tx/
WaiWai Properties LLC Multi-Family Residential Real Estate Investors
Other Information The City of Amarillo adopted a plan in January 2017 for North Heights neighborhood revitalization.
Future property values are expected to increase significantly as the neighborhood gentrifies.
Source: The North Heights Neighborhood Plan, An Amendment to the Amarillo Comprehensive Plan
The property may also be eligible for grants or loans. The property is located in Census tract 148 which is listed as a CDBG target area. This project meets 2 of 3 federal objectives for CDBG funds:
1. Benefits low and moderate income residents
2. Eliminates slum or blight
3. Urgent needs
WaiWai Properties LLC Multi-Family Residential Real Estate Investors
Detailed Description of Scope of Work
The existing structure has “good bones” (CMU walls) and a 6-year old roof in excellent condition. The
remaining structure will be completely remodeled including:
• All new electrical including meters
• All new plumbing
• All new windows and doors
• New fire suppression/sprinkler & alarm system
• Substantial interior rehab work
• All new appliances
• All new HVAC
• Special repairs to fire damaged units
• Onsite laundry
Preliminary Work (Already Completed)
Installed no trespassing signs and repaired fence around building
Board up gap Separating two buildings on South side to deter trespassing
Trim back all landscape, mow, trim trees, etc
Obtained Parking Variance
Asbestos Survey/Testing Complete
Architecture Drawings Complete
Site Plan Approved
Phase 1: Demolition
Permit for demolition and construction
Clean existing debris, trash, furniture from every unit
Demo of plumbing, HVAC and electrical
Remove all windows
Remove any doors that cannot be reused
Asbestos Abatement where flooring is damaged and loose (approx. 30% of units)
Rental of temporary toilets
Storage for materials and/or equipment (specify if onsite or offsite)
Dumpsters & waste removal during construction
Temporary power
Security during construction (please specify type and name of sub if applicable)
Rental Equipment/Small Tools
Trim back all landscape, mow, trim trees, etc (ongoing)
Termite treatment around perimeter of buildings
Continued on next page
WaiWai Properties LLC Multi-Family Residential Real Estate Investors
Phase 2: Secure Buildings (doors, windows, HVAC)
Install all exterior Doors & Framing as needed - hollow metal doors
Install locks, deadbolts and peepholes for each unit's exterior doors
Install all exterior Windows - Vinyl Double Hung-Low E double paned
Repair and prep openings for HVAC; install new PTAC units
Frame/Trim as needed
Repair any holes/damage to brick/CMR/pointing; make weather tight
Phase 3: Plumbing & Electrical - All Units and Common
Plumbing scope & hydrostatic test
Install Plumbing to all units and laundry - PEX throughout
Plumbing to include new 4" cast-iron cleanouts at each water closet
Plumbing to include excavate, locate and replace water supply, backfill trench and patch asphalt when complete.
New sanitary sewer and vent piping in laundry and 1 bedroom units; connect to existing
Install Meter panels/sockets/meters/CT boxes
Rough Electrical to all units including panels, wiring, switches, etc.
Install electrical in laundry/common area/exterior
New Outlets, Switches, and Lights to be installed throughout
Final electrical
Phase 4: Additional Fire Code & Energy Code Changes:
Fire Suppression System-W/tap fees
Fire Alarm (Devices & Wiring) - automatic system throughout
Insulation to roof deck (insulate between 2nd floor ceilings and roof)
Possible required insulation - at existing exterior cmu walls inside each unit throughout.
Phase 5: Rebuilds of Certain Areas (Fire, Common, New Riser Room)
Repair burned-out units; seal salvageable wood with odor blocking primer
Create 1-bedroom in former laundry; new laundry location and new riser room
Phase 6: Interior Rebuild
Rebuild interior walls as needed; remove "wall furnace remains" and patch
Repair/Replace sheetrock in each unit as needed
Install 1 Hr fire walls between each unit (standard drywall for non-shared walls)
Install new LVP Flooring in all units and common area
Install Interior Doors (15% may require new jamb/frame as well)
Install closet doors
Trim units and common areas - base molding, doors, windows
Texture & Paint all units and common areas including walls, ceilings, frames, trim
Install new electric baseboard heater in all bedrooms
Continued on next page
WaiWai Properties LLC Multi-Family Residential Real Estate Investors
Phase 7: Interior Rebuild Pt 2
Pre-manufactured Cabinets & laminate Countertops in non HCAP units
Pre-manufactured Accessible cabinets & laminate countertops in HCAP units
Kitchen Sinks/Faucets in non-HCAP units
Accessible Kitchen Sinks/Faucets in HCAP units
Pre-manufactured standard tub/shower set in non-HCAP units
Roll in shower in 3 HCAP units
Shower faucet/ Valve /hardware
Wall hung lavatory; including 2 handle faucets & mirrors
Accessible wall hung lavatory in HCAP units; including 2 handle faucets & mirrors
Install 2-piece toilets in all units
Install water heaters in all units
Install closet rod and shelf in all bedrooms
Install knobs and hinges on all doors
Optional: Install mini-blinds (1"pvc) in all unit windows (not common area)
Final Finishing all 48 units and common
Phase 8: Exterior Building Work
Paint all exterior cmu walls
Repair stairs as needed and add risers to all stairs throughout complex
Some landings and sidewalks to be repaired, as needed
Install/repair gutters at all entries and porches as needed
Patch & Seal Coat parking; pavement markings
Phase 9: Site Work -- see Site plans for Parking, Concrete and Landscape
Install long-term security cameras
Install exterior lighting throughout complex - city specified lighting
Install mail-box system on site by street
Install Playground - specify proposed materials for grounds and equipment
Fence and gate repairs; add gate/fence between buildings on South Side
Phase 10: Finalize
Install Refrigerators
Install Free standing electric ranges
Final Walk Thru - final finishing touches
WaiWai Properties LLC Multi-Family Residential Real Estate Investors
Project Schedule (based on formal bidding beginning in October)
Pre* 2019 2019 2019 2020 2020 2020 2020 2020 2020
Activity OCT NOV DEC JAN FEB MAR APR MAY JUN
Obtain initial bids
Obtain Asbestos Survey
Attend PAC Meeting
Finalize Architectural SOW
Submit plans to City, apply for variances
Secure Perimeter
Obtain variances for site
Obtain permits
Conduct formal bidding
Finalize Construction Team
Phase 1: Demo/Clean-Up
Phase 2: Windows/Doors
Phase 3: Interior Structure
Phase 4: Plumbing & Electric
Phase 5: Paint, Floors, Trim ext
Phase 6: Kitchens & Baths
Phase 7: Appliances
Phase 8: Final Walk Thru
Marketing
Obtain Cert. of Occupancy
Begin to Lease Units
*Activities already completed are grouped in the first column