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Oakland Apartments
6244 Oakland Ave, St. Louis , MO 63139
Mike Zangara
Principal Broker
314.517.0903
mzangara@mo-apartmentadvisors.com
7751 Carondelet Ave, Ste. 800St. Louis, MO 63105314.716.2213 (p)
Value Add Opportunity●
Very Desirable RentalNeighborhood
●
Quality Tenant Base withAbility to Increase RentsSubstantially
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Proximity to Forest Park, St.Louis Zoo, Dining &Entertainment
●
Solid Brick Building withGarage Parking
●
Real Estate Investment Details
ANALYSIS
Analysis Date September 2015
PROPERTY
Property Oakland Apartments
Property Address 6244 Oakland AveSt. Louis , MO 63139
Year Built 1948
FINANCIAL INFORMATION
Down Payment $470,000
PURCHASE INFORMATION
Property Type MultiFamily
Purchase Price $2,350,000
Units 39
Total Rentable Sq. Ft. 28,846
LOANS
Debt Term Amortization Rate Payment LO Costs
Balloon $1,880,000 5 years 25 years 4.0% $9,923
INCOME & EXPENSES
Gross Operating Income $250,551
Monthly GOI $20,879
Total Annual Expenses ($98,633)
Monthly Expenses ($8,219)
CONTACT INFORMATION
Mike Zangara
314.517.0903
mzangara@mo-apartmentadvisors.com
The calculations and data presented are deemed to be accurate, but not guaranteed. They are intended for the purpose of illustrative projectionsand analysis. The information provided is not intended to replace or serve as substitute for any legal, accounting, investment, real estate, tax orother professional advice, consultation or service. The user of this software should consult with a professional in the respective legal, accounting,tax or other professional area before making any decisions.
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Executive SummaryOakland Apartments
6244 Oakland AveSt. Louis , MO 63139
Mike Zangara314.517.0903
ACQUISITION COSTS
Purchase Price, Points and Closing Costs $2,350,000
Investment - Cash $470,000
First Loan $1,880,000
INVESTMENT INFORMATION
Purchase Price $2,350,000
Price per Unit $60,256
Price per Sq. Ft. $81.47
Income per Unit $6,750
Expenses per Unit ($2,529)
INCOME, EXPENSES & CASH FLOW
Gross Scheduled Income $263,232
Total Vacancy and Credits ($12,681)
Operating Expenses ($98,633)
Net Operating Income $151,918
Debt Service ($119,080)
Cash Flow Before Taxes $32,838
FINANCIAL INDICATORS
Cash on Cash Return Before Taxes 6.99%
Debt Coverage Ratio 1.28
Capitalization Rate 6.46%
Gross Rent Multiplier 8.93
Gross Income / Square Feet $9.13
Gross Expenses / Square Feet ($3.42)
Operating Expense Ratio 39.37%
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Property DescriptionOakland Apartments
6244 Oakland AveSt. Louis , MO 63139
Mike Zangara314.517.0903
Oakland Apartments is being offered at$2,350,000. The Property is solid brickconstruction with concrete floors and garageparking. Oakland Apartments is located directlyacross highway 40/64 directly across from theSt. Louis Zoo and just west of the St. Louis Zoo'snew development at the corner of Hampton andOakland.
The Property consist of 39 units that are 100%occupied with a very strong tenant base, whichis a good indication rents can and should beincreased. Additionally, the new Owner canincrease their bottom line, by implementing ratio utility billing (RUBS), which is common for similarheat furnished buildings in the area.
Please contact Michael with questions or to schedule a showing today.
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Unit Mix ReportOakland Apartments
6244 Oakland AveSt. Louis , MO 63139
Mike Zangara314.517.0903
UNIT MIXES
Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly27 Studios 485 $495 $13,365 $550 $14,8506 1 Bedroom / 1 Bath 650 $590 $3,540 $690 $4,1406 2 Bedroom / 1 Bath 875 $705 $4,230 $790 $4,74039 22,245 $21,135 $23,730
UNIT MIX UNIT MIX SQUARE FEET
● Studios
● 1 Bedroom / 1 Bath
● 2 Bedroom / 1 Bath
● Studios
● 1 Bedroom / 1 Bath
● 2 Bedroom / 1 Bath
UNIT MIX INCOME UNIT MIX MARKET INCOME
● Studios
● 1 Bedroom / 1 Bath
● 2 Bedroom / 1 Bath
● Studios
● 1 Bedroom / 1 Bath
● 2 Bedroom / 1 Bath
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Pro Forma SummaryOakland Apartments
6244 Oakland AveSt. Louis , MO 63139
Mike Zangara314.517.0903
UNIT MIX & ANNUAL SCHEDULED INCOME
Type Units Actual Total Pro Forma Total
Studios 27 $5,940 $160,380 $6,600 $178,200
1 Bedroom / 1 Bath 6 $7,080 $42,480 $8,280 $49,680
2 Bedroom / 1 Bath 6 $8,460 $50,760 $9,480 $56,880
TOTALS 39 $253,620 $284,760
ANNUALIZED INCOMEActual Pro Forma
Gross Potential Rent $253,620 $284,760
Less: Vacancy ($12,681) ($14,238)
Misc. Income $9,612 $9,612
Effective Gross Income $250,551 $280,134
Less: Expenses ($98,633) ($86,343)
Net Operating Income $151,918 $193,791
Debt Service ($119,080) ($119,080)
Net Cash Flow after Debt Service $32,838 $74,711
Principal Reduction $44,693 $44,693
Total Return $77,532 $119,404
ANNUALIZED EXPENSES
Actual Pro FormaProperty Management Fee $12,528 $14,238
Administration $5,206 $5,206
Grounds $1,912 $1,912
Building Insurance $13,730 $13,730
Maintenance Supplies $4,767 $4,767
Repairs & Maintenance $6,706 $6,706
Contract Services $7,883 $7,883
Taxes $18,081 $18,081
Utilites $27,820 $13,820
Total Expenses $98,633 $86,343
Expenses Per RSF $3.42 $2.99
Expenses Per Unit $2,529 $2,214
INVESTMENT SUMMARY
Price: $2,350,000
Year Built: 1948
Units: 39
Price/Unit: $60,256
RSF: 28,846
Price/RSF: $81.47
Lot Size: 0.49 acres
Floors: 3
Parking Spaces: Ample
APN: 45930000300
Cap Rate: 6.46%
Pro Forma Cap Rate: 8.25%
GRM: 8.93
Pro Forma GRM: 7.98
FINANCING SUMMARY
Loan Amount: $1,880,000
Down Payment: $470,000
Loan Type: Balloon
Interest Rate: 4%
Term: 5 years
Monthly Payment: $9,923
DCR: 1.28
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Financial IndicatorsOakland Apartments
6244 Oakland AveSt. Louis , MO 63139
Mike Zangara314.517.0903
Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Gross Rent Multiplier 8.93 8.68 8.43 8.20 7.96 7.74 7.52 7.31 7.10 6.90
Capitalization Rate 6.46% 6.76% 7.06% 7.37% 7.69% 8.02% 8.35% 8.70% 9.06% 9.43%
Cash On Cash Return b/t 6.99% 8.45% 9.95% 11.50% 13.10% 8.94% 9.32% 9.70% 10.11% 10.52%
Cash On Cash Return a/t 6.99% 8.45% 9.95% 11.50% 13.10% 8.94% 9.32% 9.70% 10.11% 10.52%
Debt Coverage Ratio 1.28 1.33 1.39 1.45 1.52 N/A N/A N/A N/A N/A
Gross Income per Sq. Ft. $9.13 $9.39 $9.66 $9.94 $10.23 $10.53 $10.83 $11.15 $11.47 $11.81
Expenses per Sq. Ft. ($3.42) ($3.43) ($3.44) ($3.46) ($3.47) ($3.49) ($3.50) ($3.52) ($3.53) ($3.55)
Net Income Multiplier 15.47 14.80 14.17 13.57 13.01 12.48 11.97 11.49 11.03 10.60
Operating Expense Ratio 39.37% 38.40% 37.46% 36.55% 35.67% 34.80% 33.96% 33.14% 32.35% 31.58%
Loan To Value Ratio 78.10% 76.12% 74.06% 71.91% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Footnotes: b/t = before taxes; a/t = after taxes
page 7 of 9
Property PhotosOakland Apartments
6244 Oakland AveSt. Louis , MO 63139
Mike Zangara314.517.0903
page 8 of 9
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