7 home sfr investment portfolio atlanta ga - … · variety of sources to generate our exclusive...

SVN | SFRhub Advisors2400 E. Arizona Biltmore Circle

Building 4, Suite 1400

Phoenix, Arizona 85016

As featured on SVN Live weekly broadcast-view at www.SVN.com

100% Occupied & Cherry-pickable!

7 HOME SFR INVESTMENT PORTFOLIO ATLANTA GA - PORTFOLIO 100391OFFERING MEMORANDUM

VISIT WWW.SFRHUB.COM FOR MORE INFORMATION!

Jeff ClineSVN | SFRhub Advisors

Executive Director & Designated Broker 602.441.5354

[email protected]

Michael FinchSVN | SFRhub AdvisorsExecutive VP | Principal

[email protected]

John Johnson, CCIM, ALCSVN | Interstate Brokers

Managing Director404.303.1232

[email protected]

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved P #0391V.1

PROPERTY SUMMARY

Offering Summary

PROPERTY DESCRIPTION

Property Overview

HIGHLIGHTS

Property Highlights

LOCATION OVERVIEW

Location Info

Major Employers

MARKET DATA

MSA Housing Market

US Housing Market

INVESTMENT OVERVIEW

Operating Pro Forma

Debt Overview

Financing Assumptions

DEMOGRAPHICS REPORT

ADVISORS BIO

4

6

8

10

12

16

18

20

2 7 Home SFR Investment Portfolio Atlanta GA

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved SVN | SFRhub Advisors SVN | Interstate Brokers

Five Reasons We KNOW You’ll Benefit with SFRhub Today, We Are Unlike Anyone Else...

Research with clean and verified intelligent decision data. We use proprietary processes gathering data from a variety of sources to generate our exclusive verified Advanced SFR Scrub Report™, powered by top-ranked Automated Valuation Model* (AVM) data, verifying 25-35 data points on each individual home within a portfolio.

Buyers and sellers can optimize their acquisition/disposition profitability by reducing opportunity cost as a result of targeted research and “cherry-picking”capability.

The nation’s largest SFR/Build-For-Rent (BFR) portfolio, single source Live Acquisition Board, operating in all 50 states with access to over a million buyers and sellers.

With 200 offices in 500 sub-markets we are not just another listing site. We are a full service SVN commercial real estate brokerage.

We are buyer/seller direct. Providing seamless due diligence, inspection, escrow, and transaction management support with a fully licensed real estate team.

3

Information is deemed reliable, but not guaranteed. Programs and pricing are subject to change.SVN | SFRhub Advisors SVN | Interstate Brokers

PROPERTY SUMMARY

List Price:

Number of Homes:

Stabilized Year I Cap Rate:

Stabilized Year I Pro Forma NOI:

Avg. Home Size:

Market:

Price/SF:

$1,925,790

7

5.68%

$109,315

2,762 SF

Atlanta MSA

$100

OFFERING SUMMARY

**Pro Forma rates assume all homes are being operated at projected market rates.**


Home Type

4 Bdrms

5+ Bdrms

AverageSize/Type

2,589 SF

2,993 SF

Numberof Homes

4

3

AverageRent/SQ FT

$0.68

$0.72

AverageMonthly Rent

$1,756.25

$2,141.67


Information is deemed reliable, but not guaranteed. Programs and pricing are subject to change.SVN | SFRhub Advisors

5

SVN | Interstate Brokers

PROPERTY DESCRIPTION

PROPERTY OVERVIEW

Learn more about portfolio 100391 at SFRhub.com

This 7 home portfolio is a great small-scale acquisition or addition to an existing portfolio as a turn-key, fully leased investment with a 100% occupancy rate and containing only qualified & background-checked tenants. Being offered by a large SFR operator, this portfolio is one of multiple portfolios being sold by the seller. It is fully ‘cherry-pickable’, and can be packaged with properties from the additional portfolios to create a customized portfolio unique to your investment criteria and target markets.

Scattered around the popular Atlanta metro area, this portfolio offers a great opportunity for an investor to enter this hot

and ever-expanding market. The homes in this portfolio are currently achieving close to full market rents with an average rate of $1,831 per door, giving a new investor opportunity to increase the rents to $1,921 per door. This 5%, economic value add rent increase will put the new owner at top market rates, yielding more attractive returns. Atlanta renters tend to demand and pay higher rents for higher bed counts in their desired homes above any other MSA and this portfolio offers exactly that. With 4 - four-bedroom and 3 - five-bedroom homes, all with attached garages, this group of homes will have no problem staying fully leased. They are all relatively new, with a 2002 average vintage and all having gone through an extensive remodel in 2013. The average dwelling square-footage of this portfolio is 2,762 square-feet per home. All of

these homes are located in desirable neighborhoods and top school districts in the area, with almost all schools rated above an 8/10 according to GreatSchools.org.

According to a RentCafe report published in January 2019, research shows the Atlanta MSA is home to 6 out of the nation’s top 20 suburbs for renters. RealPage. Reports that rent rates in Atlanta have increased 4.8% over the last year, (only trailing behind Las Vegas and Orlando), while still maintaining a high average occupancy of 94.7%. This far surpases the nationwide average rent increase at 3.3% in 2018 as well.



77


PROPERTY HIGHLIGHTS

• Learn more about portfolio 100391 at SFRhub.com

• Atlanta is ranked 3rd in rental growth in the nation with a 4.8% increase over the last year

• Newer homes, all remodeled and improved in 2013

• 100% occupancy rate with fully vetted background-checked tenants

• National operator & professional managed portfolio

• Located in the 6th ranked suburb out of the nation’s top 20 suburbs for renters

• Highly desired floor plans for the specific market, including solely 4 and 5 bedroom homes

• Opportunity to increase rents 5% to market rates

• All homes located in top rated school districts

8 Portfolio Name

HIGHLIGHTS



99


LOCATION OVERVIEW

LOCATION INFO

Atlanta, which is already well known as one of the largest metropolises in the south, just saw a 1.29% population increase from 5,874,249 in 2017 to 5,949,951 in 2018. Right along with the population growth, job growth has moved at an equally rapid pace with employment increasing 2.4% year over year which is 0.7% higher than the 1.7% national rate of job growth. Between population and job growth alone, it no surprise that Atlanta ranks third in cities that house the most Fortune 500 Companies. It also ranks third in “Best Cities” for startups, just under New York and San Francisco.

What is even more impressive than startups and Fortune 500 companies flocking to the area, is the film industry’s growth and success. Atlanta has been

recently named the number one place to live and work as a filmmaker by Moviemaker.com. In 2008 then-Governor Sonny Perdue signed a generous tax incentive for film productions. The law’s incentive is similar to that of New York and Louisiana; however, Georgia’s law has no end date.

From 2007 to 2016 the film industry has exponentially increased its spend on productions from $93 million to over $2 billion. Georgia’s government estimates that in 2016 alone the film industry gave the state a $7 billion economic boost. Furthermore, there is evidence of longevity in the film industry finding a southern home in Atlanta.


Studios, such as Pinewood which has hosted Marvel films, are building permanent campuses. Furthermore, the state has funded educational institutions to further foster the growth, such as the Georgia Film Academy which trains aspiring crew members and provides graduates a direct line to local production companies in the area.


MAJOR EMPLOYERS

1111


MARKET DATA

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved SVN | SFRhub Advisors

MSA HOUSING MARKET

The Atlanta market is experiencing a growth in employment of 1.9% and a household increase of 1.8%. There are currently 26,194 single-family permits (12 months) available. Based on data pulled from 133 markets, the home value trends for both new and resale homes collectively are currently experiencing a 4.9% increase in price appreciation.

In Atlanta, the average single-family cost of rent as of August 2019 is $1,279 and is projected to increase by 1.5% by 2022. The median household income is $67,600, making the single-family rent-to-income ratio 22.7%. The single-family home occupancy rate as of December 2018 is at an impressive 91.2%, with only 8.8% vacancies.

*Source for MSA Housing Market: John Burns Real Estate Consulting as of August 2019.




13

MSA HOUSING MARKET GRAPHSThe information and data used in the graphs on this page have been provided by John Burns Real Estate Consulting as of August 2019. These are based on Atlanta MSA research on the SFR & BFR market.


All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved SVN | SFRhub Advisors

US HOUSING MARKET


In the U.S., rents in the lower rent tiers are increasing 4% YOY compared to higher rent homes at 3.4%. According to a recent Freddie Mac survey, about 50% of millennials prefer to continue renting while a surprising 72% of baby boomers would like to keep renting as well. Baby boomers tend to rent longer at approximately 8.4 years versus younger renters who rent for about 3.2 years.

The single-family rental demand is forecasted to continue strong through 2022 even with an expected modest recession. Nationally, rents rose 3.7% with Vegas, Phoenix and Orlando leading with the strongest YOY growth and Cincinnati and Houston fell behind. As tenants are sticking with REITs, they maintain 95% occupancy with strong 4% rent growth. Build-for-Rent gains big momentum with SFR investors as there is a strong demand among all generations, including baby boomers.

Nationally, the housing market will remain steady, benefitting from a slightly stronger economy and lower mortgage rates that have declined due to fears of an economic slowdown. A forecasted 2021 recession with a .4% job loss is a likely outcome. Nationally, housing affordability is worse than usual regardless to mortgage rates. For 2019, there will be over a 2% increase in home sales, however resale sales will drop 4% while resale prices increase by over 3%. Overall, entry-level homes continue to outperform as months of resale supply for high-priced homes (10 months) is at the highest it has been since 2013.

Across the country, there has been a 2% increase in new home sales and 3% in resale price appreciation in 2019. Slow price gains and new home construction are predicted as the economic expansion continues into its 11th consecutive year. Homebuilders’ active projects have

declined by 2% year over year as land, laws, labor and lending limit advancement. Housing affordability will continue during the next recession which has had an impact on builder sales.

*Source for U.S. Housing Market: John Burns Real Estate Consulting as of Q1 2019.



1515

US HOUSING MARKET GRAPHSThe information and data used in the graphs on this page has been provided by John Burns Real Estate Consulting as of April 2019. These are based on nationwide research on the SFR & BFR market.


INVESTMENT OVERVIEW

INVESTMENT OVERVIEW


Cap Rate - Stabilized

Gross Yield

Net Operating Income (NOI)

Leveraged IRR

Unleveraged IRR

Leveraged Cash-On-Cash

Number of Homes

List Price

List Price Per Home

List Price/SQFT

Pro Forma

5.47%

8.38%

$105,434

2.35%

7

$1,925,790

$275,113

$100

Year 1; T-12

5.68%

8.63%

$109,315

21.02%

11.08%

3.02%

Year 3; T-36

6.10%

9.16%

$117,464

22.71%

11.58%

4.43%

Year 5; T-60

6.55%

9.72%

$126,154

24.51%

12.12%

5.94%



OPERATING PRO FORMA

DEBT OVERVIEW


Loan-To-Value Ratio

Interest Rate

Loan Amortization in Years

FINANCING ASSUMPTIONS

70.00%

5.50%

30

Annual Rent

Average Monthly Lease Rate (P.S.F.)

Vacancy

Operating Expenses

Net Operating Income (NOI)

Pro Forma

$161,400

$0.70

5.00%

$47,896

$105,434

Year 1; T-12

$166,242

$0.72

5.00%

$48,614

$109,315

Year 3; T-36

$176,366

$0.76

5.00%

$50,084

$117,464

Year 5; T-60

$187,107

$0.81

5.00%

$51,598

$126,154

Debt Amount

Annual Debt Service Payments

Estimated Annual Market Valuation

Appreciation (National)

Pro Forma

$1,348,053

$91,849

Year 1; T-12

$1,329,894

$91,849

5.40%

Year 3; T-36

$1,290,444

$91,849

5.40%

Year 5; T-60

$1,246,418

$91,849

5.40%


17


DEMOGRAPHICS REPORT

Total Population

Median Age

Median Age (Male)

Median Age (Female)

Total Household

Total Person/Household

Avg. Household Income

Avg. House Value

DEMOGRAPHICS REPORT

5 Miles

326,600

33.2

33.2

33.2

140,937

2.3

$78,457

$355,958

10 Miles

894,172

34.5

33.7

35.2

375,910

2.4

$78,340

$332,443

15 Miles

1,781,273

34.1

33.3

34.8

716,851

2.5

$74,798

$293,068



1919


JEFFREY CLINE

Jeff Cline’s 40+ years of business leadership and commercial real industry expertise includes commercial real estate marketing, brokerage, large-scale finance, development and construction. Mr. Cline has lead as CEO in several commercial property segments including multi-family apartments, condominiums, high-rise, office buildings, industrial / warehouse, retail shopping centers and as a national leader in the SFR Portfolio investment segment. Jeff has been involved as a principal in $2+ billion of commercial real estate, construction and property funding.

As a Principal and Designated Broker of SVN | SFRhub Advisors, Jeff is a co-founder which has developed an industry disrupting CRE digital transaction platform. This new digital platform is changing the way the CRE industry markets, researches, analyzes and acquires commercial investment property. It is this platform that will be a the disruption and opportunity with what will soon become the ‘normal’ location, marketing, research, and transaction portal.

Executive Director & Designated Broker

SVN | SFRhub Advisors2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, AZ 85016

T: 602.441.5354C: [email protected]

AZ #BR6508-89-000

ADVISOR BIOGRAPHIES



MICHAEL FINCH

Michael Finch began his career in commercial real estate brokerage over 15 years ago in Phoenix, Arizona. He has developed broad local and national relationships with the top-ranked high density mid to large scale developers commercial mixed-use & multifamily developments. Michael continued to deliver value-add opportunities as market cycles have evolved. With an extensive national network, Michael has successfully grown his client base with the nation’s largest investment & private equity groups in the country. He enjoys being an integral component to these client teams focused on large-scale income-producing portfolios, specifically single-family rental portfolios and build-for-rent investment portfolios for many years now.

Today, Michael is a Principal, Founder, & Executive Vice President in SVN | SFRhub Advisors, the nation’s leading commercial real estate brokerage firm focused on single-family rental portfolios & build-for-rent (BFR) investment portfolio sales on a national level. Michael is also a founding partner in SFRhub.com, a leading data & valuation service provider, and digital transaction platform for buyers & sellers of SFR & BFR investment portfolios.

Executive VP | Principal

SVN | SFRhub Advisors2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, AZ 85016

T: 602.441.5354C: [email protected]

AZ #SA576104000

21


JOHN JOHNSON, CCIM, ALC

John L. Johnson, CCIM, ALC, CPA (not presently practicing), serves as Managing Broker for SVN Interstate Brokers. With over 35 years of commercial real estate brokerage, accelerated marketing, own-ership, loan, and turn-around experience, Johnson has sold properties in 41 states.

Prior to joining SVN, Johnson served as President for Interstate Brokers and Auc-tions, headquartered in Atlanta, Georgia. In that capacity, he managed sales for many institutional and other sellers, in-cluding various Federal Agencies under his current contract with GSA, Resolution Trust Corporation (RTC), the Small Busi-ness Administration (SBA), the Federal Deposit Insurance Corporation (FDIC), US Marshals Service, U.S. Bankruptcy Courts, Bank of America, Wachovia, SunTrust Bank, developers, private and corporate investors, and many other entities. For the RTC, he pioneered a more focused auction concept, and also oversaw reha-bilitation contractors for the RTC Afford-able Housing program. Interstate was also the exclusive auction source for Pru-dential Commercial Services on a nation-al multi-year contract. He was formerly a

senior auditor with Peat Marwick Mitchell & Co. and a Captain in the United States Air Force.

Johnson organized SVN Accelerated Mar-keting Co., Inc. to be the auction arm of SVN, and served as President for 5 years. He has managed thousands of accelerat-ed marketing/auction sales, including a $35,000,000 plus accelerated sale of 22 multifamily properties in Miami, FL. estate marketing and sales.

Consistently a leading advisor, Johnson is a five-time recipient of SVN’s Partners Circle award and was a three-time winner of Prudential’s Chairman’s Circle award.

Managing Director

SVN | Interstate Brokers 3300 Holcomb Bridge RoadSuite 240Peachtree Corners, GA 30092

T: [email protected]

GA #155996


SVN | Interstate BrokersAll SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved SVN | SFRhub Advisors

23

SVN | Interstate Brokers Information is deemed reliable, but not guaranteed. Programs and pricing are subject to change.SVN | SFRhub Advisors

INTELLIGENT DECISION DATA

ABOUT SVN | SFRhub ADVISORS

SFRhub is our exclusive research and data provider with end-to-end Intelligent Decision Data solutions. A complete, effective clean data sourcing, research and analysis is essential to all SFR Portfolio buyers and sellers. The exclusive SFRhub Advanced SFR Scrub Report is essential for all intelligent decisions, whether they’re operational, asset acquisition or disposition and the overall strategic asset plan.

Today’s most effective and intuitive clean and verified data solutions are comprised of

Our proprietary Advanced SFR Scrub Report™ supports the buyer and seller decision process with quality and real time intelligent decision data, enabling an analysis of every aspect of the opportunity.

Also proprietary are our exclusive accelerated contract documentation process, title insurance management, due-diligence period logistics and documentation, with the final close of escrow. Ultimately, these pieces combine for a seamless

reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics and prescriptive analytics.

SFRhub has knowledgeable and experienced individuals who work with data sources as true partners to help implement solutions that are forward-thinking, yet still based on industry knowledge and best practices.

decision-managed process – for both the buyer and seller.

SVN | SFRhub Advisor delivers the nation’s only single-family rental (SFR) portfolio Live Acquisition Board™ transaction platform.

In support, the dedicated, experienced, and professional SFR portfolio team has developed both an exclusive and conventional SVN | SFRhub Advisors program. In applying this advanced

technology, SVN | SFRhub Advisors becomes the nation’s sole SFR Portfolio Live Acquisition Board™ Transaction Platform, supporting both sellers and buyers of single-family residential rental investment portfolios. In addition, we feature existing asset as well as new-build home commercial investment portfolios nationally, anywhere from 5 to 5,000 homes.



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 circumstances, 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 proposal, and no other person 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 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. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, 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 these materials shall not look to the 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 acknowledge the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto.

To the extend 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.

25


3300 Holcomb Bridge RoadSuite 240Peachtree Corners, GA 30092www.SVN.com404.303.1232

2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, Arizona 85016www.SFRhub.com602.441.5354

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved

7 home sfr investment portfolio atlanta ga - … · variety of sources to generate our exclusive...

Documents