a boutique apartment complex opportunity 2749images1.loopnet.com/d2/nmepcwbuxb3opvb1j9...students in...
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www.orionprop.com
JOHN FERNBACH480.750.1220 (O)480.440.9104 (M)[email protected] www.orionprop.com
TREVOR HARDY480.750.4965 (O)480.414.4560 (M)[email protected]
LISTED BY:
2749A BOUTIQUE APARTMENT COMPLEX OPPORTUNITY 4 BEAUTIFULLY RENOVATED UNITS
2749 WEST TUCKEY LANE | PHOENIX
ORION Investment Real Estate7328 East Stetson Drive | Scottsdale, AZwww.orionprop.com
All materials and information received or derived from ORION Investment Real Estate its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither ORION Investment Real Estate its directors, officers, agents, advisors, or affiliates makes any representation or warranty, expressed or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. ORION Investment Real Estate will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE.
Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. ORION Investment Real Estate makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. ORION Investment Real Estate does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property.
Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by ORION Investment Real Estate in compliance with all applicable fair housing and equal opportunity laws.
DISCLAI
MER
2749
PROPERTY OVERVIEW LOCATIONOFFERING
PROPERTY SUMMARYPARCEL MAP
AERIALAREA OVERVIEW
FINANCIAL ANALYSISINVESTMENT OVERVIEW
UNIT MIXINVESTMENT ANALYSIS
PRICING ANALYSIS
MARKET COMPARABLESSALE COMPARABLES
DEMOGRAPHICS
MEET THE TEAMADVISOR PROFILES
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T O C
THE OFFERING
2749 Tuckey is a four unit, garden-style apartment community located just north of the vastly expanding Grand Canyon University. Originally built in 1962, the property was fully renovated in 2018. Exterior renovations include: new paint, stucco, dual pane windows, landscaping, enclosed back patios, and a new roof. In addition, there are four new water heaters and waitlisted tenants. All 2 bedroom 1 bath units have been upgraded with new flooring, cabinets, counters, stainless steel appliances, hardware throughout, tile backsplash, and a washer/dryer (available for $50/month premium).
2749 Tuckey is less than one mile from 19NORTH, a gentrifying community project surrounding the Valley METRO light rail. Located between Montebello and Dunlap, 15th Avenue to 23rd Avenue, hosting numerous restaurants, shops, and businesses, residents of 2749 Tuckey enjoy close proximity to shops and entertainment, with easy access to the 1-17 freeway and light rail transit access to most of the Valley.
PRICE $479,000
PRICE PER UNIT $119,750
CAP RATE 6.65%
UNITS 4
RENTABLE SF ±2,675
ACREAGE ±0.25
ZONING R-3
NUMBER OF BUILDINGS 1
NUMBER OF PARKING SPOTS 8
YEAR BUILT/RENOVATED 1962/2018
NORTH PHOENIX
SUBJECT
CONSTRUCTION/MECHANICALELECTRICITY Individually Metered (SRP)
WATER/SEWER/TRASH City of Phoenix
HVAC Individual Roof
FRAMING Wood
EXTERIOR Painted Stucco
ROOF New Rolled Foam
PARCEL VIEW#: 152-13-013BACRES: 0.25TAXES: $582 (2018)
27TH AVEN
UE
TUCKEY LANE
OCOTILLO ROAD
MCLELLAN BLVD
152-13-013B
AERIAL VIEW
27TH
AVE
NUE
SUBJECT
Phoenix is the capital and largest city of Arizona. Phoenix is the 5th largest metropolitan area by population in the United States with 4,737,000 residents. In addition, Phoenix is the county seat of Maricopa County, and is the 6th largest metropolitan area in the United States by land area. The largest capital city in the United States, Phoenix is the only state capital with over 1,000,000 people. The evolution of Downtown Phoenix over the last 5 years has been significant with more than $4 Billion invested in office space, retail, restaurants, educational facilities, convention space, and hotels.
Phoenix is the vibrant center of one of the fastest growing job markets and economies in the United States. Phoenix is home to a large number of high-tech, IT, renewable energy and bioscience industries. The city’s economic base also includes a viable financial and advanced business services enterprises as well as a robust health sciences sector. The Phoenix area has a talented labor pool with the median age of its population at 33 years old, younger than the national average, and 28 percent of the total population hold a bachelor’s degree. Engaged, high-quality colleges and universities are fundamental to a strong and sustainable economy and Phoenix has over 300,000 current college students. All three Arizona public universities have a presence in Phoenix, nine private academic institutions offering undergraduate and graduate degrees are located in Phoenix, and there are 17 other academic institutions.
In a landscape famous for red rocks, blue skies and golden sunshine, Greater Phoenix takes great pride in being green. The Phoenix Convention Center is LEED certified, METRO Light Rail is virtually pollution free, and the City of Phoenix has created more than 80 sustainability programs in water, energy and natural-resource conservation.
Phoenix’s beautiful desert landscape and vast-sky sunsets aren’t the only reasons people love to live and visit Phoenix. Within the beautiful desert lies urban sophistication: Resorts and spas, stadiums and arenas worthy of the world’s biggest sports spectacles, restaurants with inspired cuisine and views, golf courses that beckon players the year round, and shopping centers with some of best globally recognized brands. Inc. Magazine ranked Phoenix as the best city to start and grow a company and the city ranks as the fastest growing city among cities in the United States with populations greater than one million. In Q1 of 2017 Forbes ranked Phoenix as the metro with the 8th fastest job growth rate among the 100 metro areas analyzed, and also 8th in America’s 20 fastest growing cities.
CAPITAL & LARGEST CITY OF ARIZONA | MOST POPULOUS CAPITAL IN THE NATION | FASTEST GROWING CITY WITH OVER 1 MILLION PEOPLE
PHOENIX, AZ
Midtown Phoenix is known by a number of names, among them “Central Corridor,” but this financial district has been quietly growing for years. Home to notable landmarks such as Park Central Mall, St. Joseph’s Hospital, One Lexington condominiums, Steele Indian School Park and a growing array of businesses, residences, restaurants and hangouts, Midtown may not receive as much press as the city core does, but it thrives in its understated cool.
The light rail line flows seamlessly through the heart of the district, Central Avenue, running straight up the middle. The boundaries of this district differ depending on who you talk to, but the absolute core is at Central Avenue and Thomas Road, where banks, law offices, communications companies and more occupy the high-rise buildings.
Phoenix Sky Harbor International Airport is a civil-military public airport three miles southeast of downtown Phoenix. It is Arizona’s largest and busiest airport, and among the largest commercial airports in the United States. In 2017, the airport served 43,921,670 passengers, making it the forty-first busiest airport in the world. It handles more than 1,200 aircraft operations a day, 120,000 passengers, and more than 800 tons of cargo.
Grand Canyon University is currently the largest Christian university in the world. The university grew its campus student body from fewer than 1,000 students in 2009 to over 19,000 ground students in fall 2017, where the incoming student GPA was 3.5. By 2016, more than 75% of the university’s traditional students study in rigorous STEM and business programs. GCU’s nontraditional student body increased from approximately 22,000 students at the start of 2009 to over 60,000 online students currently. Over 47% of GCU's online student body is studying at the graduate level and that percentage is growing. In total since 2009, the university had invested over $1 billion dollars—and today, continues to invest in full-time faculty, improved technology infrastructure, new facilities and programmatic expansion in high-growth, high-demand areas such as engineering, computer science and IT.
Abrazo Arizona Heart Hospital has served as the area’s leading hospital for the diagnosis and treatment of heart and vascular disease since 1998. The hospital has distinguished itself as one of the nation’s top 100 cardiovascular hospitals, recognized for surgical performance, clinical efficiencies, and better patient outcomes. 948 hardworking staff members are employed here, 300 of which are top performing physicians.
www.abrazohealth.com
LOCATION OVERVIEW
Number of Units 4Weighted Average Unit Size 669 SFNet Rentable Square Feet 2,675 SFCurrent Rent/Unit $894Price $479,000Cap Rate 6.65%New Loan (75% LTV) $359,250Down Payment $119,750Interest Rate 4.50%Term 30 YearsDebt Service ($21,843)Cash Flow $10,035Cash on Cash 8.38%
Unit Description Units Unit Mix Square Feet Net Rentable SF Current Rents2 Bed 1 Bath Washer/Dryer 1 25% 615 615 $8852 Bed 1 Bath 1 25% 615 615 $8602 Bed 1 Bath Washer/Dryer 1 25% 615 615 $8602 Bed 1 Bath 1 25% 830 830 $970
TOTAL / WTD AVG 4 100% 669 2,675 $3,575
INVESTMENTOVERVIEW
EOY1 InvestmentPro Forma
INCOME Per UnitAll Units at Market Rent 42,900 10,725Gain (Loss)-to-Lease (858) 2.00%
GROSS POTENTIAL RENT $42,042 $10,511
ECONOMIC LOSSESVacancy Loss (2,102) 5.00%Other Rent Loss (841) 2.00%
Total Economic Losses ($2,943) 7.00%NET RENTAL INCOME $39,099 $9,775
OTHER INCOMEUtility Reimbursement 960 240
Total Other Income $960 $240EFFECTIVE GROSS INCOME $40,059 $10,015EXPENSES
General & Administrative 400 100Marketing & Promotion 200 50Payroll 0 0Repairs & Turnover 2,000 500Contract Services 400 100
Controllable Expenses Subtotal $3,000 $750Utilities 2,400 600Management Fee 0 0Real Estate Taxes 582 146Insurance 1,200 300
TOTAL OPERATING EXPENSES $7,182 $1,796 Reserves & Replacements 1,000 250TOTAL EXPENSES $8,182 $2,046NET OPERATING INCOME $31,877 $7,969
Any projections, opinions, assumptions, or estimates used herein are for example purposes only and do not represent the current or future performance of the property.
INVESTMENTANALYSIS
1
PROPERTY SALE PRICE UNITS $/UNIT AVG SF YEAR SALE DATE
2749 West Tuckey Lane | Phoenix $479,000 4 $119,750 669 1962 On Market
1 | 6824 North 23rd Avenue | Phoenix $717,000 6 $119,500 730 1960 On Market
2 | 1629 West Maryland Avenue | Phoenix $500,000 3 $166,667 970 1952 On Market
3 | 6201 North 23rd Avenue | Phoenix $1,199,500 10 $119,950 671 1982 On Market
4 | 2519 West McLellan Boulevard | Phoenix $306,000 3 $102,000 950 1934 11/22/2018
5 | 929 West Myrtle Avenue 1-4 | Phoenix $435,000 4 $108,750 880 1956 11/19/2018
6 | 541 West Maryland Avenue | Phoenix $533,300 4 $133,325 704 1957 06/25/2019
7 | 6542 North 17th Avenue | Phoenix $2,300,000 16 $143,750 1,000 1964 05/31/2019
AVERAGES: $855,829 7 $127,706 844 1958
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3
SALE COMPS
4
5
SUBJECT
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2 3
4 5
6 76
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2018 SUMMARY (SOURCE: ESRI) ONE MILE THREE MILE FIVE MILE
DAYTIME POPULATION 27,903 262,963 713,321
POPULATION 23,509 207,047 505,272
AVG HOUSEHOLD SIZE 2.96 2.86 2.77
AVG HOUSEHOLD INCOME $48,829 $57,799 $59,394
MEDIAN AGE 32.4 32.2 32.7
DAYTIME POPULATION
AVERAGE HHINCOME
MEDIANAGE
713,321
$59,394
32.23 Mile Radius
3 Mile Radius
5 Mile Radius
DEMOGRAPHICS
MARKETING | EXPERIENCE | RESEARCH | TECHNOLOGY | PERFORMANCE
JOHN FERNBACHASSOCIATE480.750.1220 (O)480.440.9104 (M)[email protected]
TREVOR HARDYVICE PRESIDENT480.750.4965 (O)480.414.4560 (M)[email protected]
Trevor Hardy joined ORION Investment Real Estate in 2016 as Vice President, specializing in multifamily sales. His primary focus is sub 100-unit apartment communities in the Phoenix metropolitan area.
Prior to joining ORION, Trevor enjoyed a 3-year career at Marcus & Millichap. He oversaw all aspects of one of their leading multifamily team’s business development and marketing process. Trevor was responsible for multifamily sales, client relationships, and cultivating new business opportunities.
Trevor is a licensed agent with the Arizona Department of Real Estate and holds a Bachelor of Science in Economics from University of Utah.
John Fernbach joined the ORION Investment Real Estate team in 2017 as an Associate. He specializes in multifamily investment sales within the Greater Phoenix Metropolitan area.
John holds a degree in Finance from Miami University of Ohio. After college, John jumped at the opportunity to work for the David J. Joseph Company, North America’s largest recycler. John brings six years of professional experience in business management to the real estate industry. He prides himself on having a strong entrepreneurial spirit, work ethic, integrity, passion for the best customer service, and professionalism.
John enjoys travel, food, and all things outdoors. His most memorable personal achievements include completing a full distance Ironman and biking across the United States with his best friend.
ADVISOR BIOS
www.orionprop.com
JOHN FERNBACH480.750.1220 (O)480.440.9104 (M)[email protected] www.orionprop.com
TREVOR HARDY480.750.4965 (O)480.414.4560 (M)[email protected]
LISTED BY:
2749A BOUTIQUE APARTMENT COMPLEX OPPORTUNITY 4 BEAUTIFULLY RENOVATED UNITS
2749 WEST TUCKEY LANE| PHOENIX