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Offering MemorandumMorningside View Apartments
1700 Morningside Ave, Sioux City, IA 51106
For Sale
Multifamily Property17,418 SF | $1,490,000
3 Section 1Property Information
9 Section 2Financial Analysis
15 Section 3Sale Comparables
17 Section 4Rent Comparables
19 Section 5Location Information
22 Section 6Demographics
Table of Contents
For Sale
Multifamily Property17,418 SF | $1,490,000
Morningside View Apartments
1700 Morningside AveSioux City, Iowa 51106
Section 1
Property Information
1
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
SALE PRICE: $1,490,000
NUMBER OF UNITS: 25
CAP RATE: 7.55%
GRM: 7.35
NOI: $112,421
LOT SIZE: 0.8 Acres
BUILDING SIZE: 17,418 SF
YEAR BUILT: 1900
ZONING: NC.5
SUB MARKET: Morningside North
Well established, fully occupied apartment complex located directly across the street from Morningside College.The offering includes twenty five (25) units, eighteen (18) 1-bedrooms and seven (7) 2-bedrooms consisting of a10-plex, triplex, and 12-plex. The apartments are currently managed by NAI United Management.
Built in 1900, 1700-06 Morningside Ave is a 10-plex, nine (9) one-bedroom units and one (1) two-bedroom unit.There are five car ports in the rear of the building, a coin operated washer and dryer and storage units in thebasement for additional storage. Owner pays water, sewer, trash, and heat.
1710-12 Morningside Ave is a triplex that was built in 1918 all two-bedroom, one-bath units. 1710 ½ has beenfully renovated with new flooring, kitchen, bathroom, and paint. Please see attached photos. All utilities areseparately metered.
Built in 1920, 1714-18 Morningside Ave is a 12-plex, nine (9) one-bedroom units and three (3) two-bedroom unit.There are 4 cart ports in the rear of the building, a coin operated washer and dryer and storage units in thebasement for additional storage. Owner pays water, sewer, trash, and heat.
Property Overview
For Sale
Multifamily Property17,418 SF | $1,490,000
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
1706 Morningside Ave Apt F Living Room 1706 Morningside Ave Apt F Kitchen
Parking for 1700-06 Morningside Ave1710-12 Morningside Ave
For Sale
Multifamily Property17,418 SF | $1,490,000
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
1710 1/2 Morningside Ave Living Room Before Remodel 1710 1/2 Morningside Ave Living Room After Remodel
1710 1/2 Morningside Ave Kitchen After Remodel1710 1/2 Morningside Ave Kitchen Before Remodel
For Sale
Multifamily Property17,418 SF | $1,490,000
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
1718 Morningside Ave Apt D Kitchen 1718 Morningside Ave Apt D Living Room
1718 Morningside Ave Apt D Bedroom1714-18 Morningside Ave Exterior
For Sale
Multifamily Property17,418 SF | $1,490,000
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
1714-18 Morningside Ave.
1700-06 Morningside Ave. 1710-12 Morningside Ave.
For Sale
Multifamily Property17,418 SF | $1,490,000
Morningside View Apartments
1700 Morningside AveSioux City, Iowa 51106
Section 2
Financial Analysis
2
FinancialOverview
400 Gold Circle, Suite 120 Dakota Dunes, SD 57049+1 712 224 2727naiunited.com
This portfolio investment is priced at a 7.55% CAP rate. Net Operating Income was based on
increased rent starting July 1, 2020. These 3 buildings in thie portfolio are located in a very
desirable neighborhood, directly across the street from the Morningside College campus. The
property is currently being managed by NAI United Management.
7.55% Cap Rate 100% Occupied
Great Location
Additional Storage Units
Coin Operated Laundry
Below Market Rental Rates
Income Summary Per SF
Other income $1,500 $0.09Rental Income $203,100 $11.66
Gross Income $204,600 $11.75
Expense Summary Per SF
Insurance $12,000 $0.69Property Management $16,017 $0.92Property Taxes $23,896 $1.37Repairs & Maintenance $10,000 $0.57Lawn/Snow $5,000 $0.29Trash $1,800 $0.10Electric/Gas $13,680 $0.79Water/Sewer $5,400 $0.31
Gross Expenses $87,793 $5.04
Net Operating Income $112,421 $6.45
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
For Sale
Multifamily Property17,418 SF | $1,490,000
UnitNumber
UnitBed
UnitBath
LeaseEnd
CurrentRent
SecurityDeposit
LeaseStart
1706 Morningside Ave A 1 1 $650 $217 10/1/2003
1706 Morningside Ave B 1 1 $650 $575 9/18/2018
1700 Morningside Ave C 1 1 $620 $575 4/1/2016
1700 Morningside Ave D 1 1 $650 $525 8/15/2019
1700 Morningside Ave E 1 1 4/30/2021 $680 $680 4/10/2020
1700 Morningside Ave F 1 1 3/31/2021 $600 $600 3/5/2020
1706 Morningside Ave G 1 1 $620 $525 2/1/2019
1706 Morningside Ave H 1 1 $650 $565 1/1/2016
1700 Morningside Ave I 2 1 4/02/2021 $800 $800 4/1/2020
1706 Morningside Ave J 1 1 $620 $550 11/1/2017
1710 Morningside Ave 2 1 $800 $625 1/1/2020
1710 1/2 Morningside Ave 2 1 4/30/2021 $975 $950 5/1/2020
1712 Morningside Ave 2 1 4/30/2021 $800 $695 5/1/2018
1714 Morningside Ave 1 1 $650 $500 6/1/2013
1718 Morningside Ave A 2 1 $725 $625 11/1/2012
1718 Morningside Ave B 1 1 $650 $650 5/1/2020
1718 Morningside Ave C 1 1 $650 $550 12/1/2019
1718 Morningside Ave D 1 1 3/31/2021 $660 $620 3/10/2020
1718 Morningside Ave E 1 1 $620 $200 8/1/1995
1718 Morningside Ave F 2 1 $700 $525 4/1/2019
1718 Morningside Ave G 1 1 $695 $695 8/1/2015
1718 Morningside Ave H 2 1 $620 $525 4/1/2019
1718 Morningside Ave I 1 1 $620 $152 2/1/2002
1718 Morningside Ave J 1 1 3/31/2021 $600 $600 3/13/2020
1718 Morningside Ave K 1 1 $620 $232 2/1/2007
Totals/Averages $16,925 $13,757 400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
For Sale
Multifamily Property17,418 SF | $1,490,000
Unit Type Count % Total Market Rent Market Rent/SF
1 bedroom 18 72.0 $700
2 bedroom 7 28.0 $950
Totals/Averages 25 100% $19,250
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
For Sale
Multifamily Property17,418 SF | $1,490,000
Investment Overview
Price $1,490,000Number of Units 25Price per Unit $59,600Approximate Square Footage 17,418Price per Square Footage $85GRM 7.35CAP Rate 7.55%
Operating Data
Gross Scheduled Income $202,800Vacancy Cost (2.0%) - $4,056Gross Operating Income $200,544Operating Expenses - $87,793Net Operating Income $112,421Debt Service - $86,679Pre-Tax Cash Flow $25,742Cash-on-Cash Return % (yr 1) 8.64%Principal Reduction (yr 1) + $39,721Total Return (yr 1) $65,463Return on Investment % 21.97%
Financing Data
Loan Amount $1,192,000LTV 80.00%Interest Rate 4.000%Debt Service $86,679Debt Service Monthly $7,223Amortization 20
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
For Sale
Multifamily Property17,418 SF | $1,490,000
Morningside View Apartments
1700 Morningside AveSioux City, Iowa 51106
Section 3
Sale Comparables
3
Property Address Sale Date # of Units Year Built Sale Price Price/Unit
205 Centennial Dr. North Sioux City, SD 57049
1331 S. Maple St. Sioux City, IA 51106
4351-4425 Lincoln Way Sioux City, IA 51106
260 Paxton St. Sioux City, IA 51106
$49,063
1 Sep-15 20 2008/2009 $1,500,000 $75,000
2 Feb-17 160 1968 $7,850,000
$54,583
3 Mar-18 48 1967 $2,800,000 $58,333
4 Mar-16 56 2003 $655,000
Sale
Comparables
1 2 3 4
400 Gold Circle, Suite 120 Dakota Dunes, SD 57049+1 712 224 2727naiunited.com
Morningside View Apartments
1700 Morningside AveSioux City, Iowa 51106
Section 4
Rent Comparables
4
400 Gold Circle, Suite 120 Dakota Dunes, SD 57049+1 712 224 2727naiunited.com
Rental
Comparables
Property Address 1 Bedroom
Glen Oaks by Broadmoor 3800 Glen Oaks Blvd Sioux City, IA 51104
Morningside Country Estates 1331 S Maple St
Sioux City, IA 51106
The Summit5701 Christy Road
Sioux City, IA 51106
Paxton Apartments 260 Paxton St.
Sioux City, IA 51106
1 $700-$900
2 $695
3 $940
4 $650-$700
1 2 3 4
2 Bedrooms
$850-$1175
$795
$850
$1,1175-$1,220
Morningside View Apartments
1700 Morningside AveSioux City, Iowa 51106
Section 5
Location Information
5
hear e
The Sioux City IA-NE-SD MSA is e pected to continue driving economic growth in the Midwest.
he growing regional and national importance of the local agricultural sector has helped eep the local economy e panding at or above the national rate, while insulating it from ma or economic slowdowns.
Recent Metro Highlights:
CF Industries just finished constructing a $4B fertilizer plant. Seaboard Triumph Foods completed a $264M pork processing plant. Interstate 29 is going from 4 lanes to 6 through the City by 2019. US 20 is 4 lanes from Chicago to Sioux City.
For the third year in a row, the trade publication Site Selection has named Sioux City as the small-size metro area with the most economic development projects.
The region has ranked in the top three nationally in its population category in a remarkable 10 of the last 12 years.
Iowa was ranked No. 1 in the country according to U.S. News World Report in its Best States rankings in 2018 which evaluates all 50 states across a range of criteria. This is the second year U.S. News has ranked states. According to the 2018 report, the rankings show how each of the 50 states perform in metrics across eight categories. Those categories include health care, education, economy, infrastructure, crime and fiscal stability, among others.
400 Gold Circle, Suite 120 Dakota Dunes, SD 57049+1 712 224 2727naiunited.com
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
For Sale
Multifamily Property17,418 SF | $1,490,000
Morningside View Apartments
1700 Morningside AveSioux City, Iowa 51106
Section 6
Demographics
6
* Demographic data derived from 2010 US Census
Population 1 Mile 3 Miles 5 Miles
Total Population 8,903 45,093 99,632
Median Age 30.6 32.8 33.7
Median Age (Male) 28.9 31.2 32.7
Median Age (Female) 33.6 34.4 34.6
Households & Income 1 Mile 3 Miles 5 Miles
Total Households 3,483 16,825 37,353
# of Persons Per HH 2.6 2.7 2.7
Average HH Income $47,492 $49,748 $52,204
Average House Value $96,913 $106,357 $114,557
400 Gold Circle, Suite 120Dakota Dunes, SD 57049
712 224 2727 telnaiunited.com
For Sale
Multifamily Property17,418 SF | $1,490,000
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