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  • Ash Street Courtyard 12026 SE Ash, Portland, OR 97216

    CONFIDENTIAL OFFERING MEMORANDUM

    Contact Details: STEVE MORRIS Vice President 971.888.4010 X107 steve@imgnorthwest.com

    A Multifamily Investment Opportunity | For Sale | $4,700,000

    The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

  • Ash Street Courtyard 12026 SE Ash, Portland, OR 97216

    CONTENTS

    The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

    CONFIDENTIALITY & DISCLAIMER

    PROPERTY INFORMATION 3

    FINANCIAL ANALYSIS 6

    SALES COMPARABLES 10

    RENT COMPARABLES 16

    ADDITIONAL INFORMATION 22

    LOCATION INFORMATION 27

    ADVISOR BIOS 31

    All materials and information received or derived from Investors Management Group Northwest LLC 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 Investors Management Group Northwest LLC its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express 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. Investors Management Group Northwest LLC 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. Investors Management Group Northwest LLC makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Investors Management Group Northwest LLC 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 Investors Management Group Northwest LLC in compliance with all applicable fair housing and equal opportunity laws.

    TABLE OF CONTENTS

    2

  • The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

    PROPERTY INFORMATION

    Executive Summary

    Project Highlights

    1 Ash Street Courtyard 12026 SE Ash, Portland, OR 97216

  • Executive Summary

    12026 SE Ash, Portland, OR 97216

    ASH STREET COURTYARD

    Property Summary:

    Sale Price: $4,700,000 Number of Units: 47 NOI: $279,973 Lot Size: 0.45 Acres Building Size: 29814 sqft Year Built: 2011 Zoning: RHd Cap (Actuals): 6.01% Cash-Cash: 5.17%

    Property Overview

    - All units 60% AMI - 100% Occupancy (accepted apps on vacants - Sub-meters for water on each - W/D connections on each - Buyer to assume existing HUD 223(f) loan

    (approx. $3.45M / 3.47% / 35 yr amort) - Current Cap Rate = 6.01% / Cash-Cash = 5.17% - Property Tax Abatement thru 2021

    Location

    - 1 block walk to MAX light-rail to Downtown - Easy Freeway access – I-205 & I-84 - Easy walk to Ventura & Floyd Light parks - Nearby shopping – Mall 205, Gateway and NE 122nd

  • Ash Court Apartments

    PROJECT HIGHLIGHTS

  • The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness.

    FINANCIAL ANALYSIS

    Current Operating Actuals

    Income & Expense Notes

    Market Rate Buyout Notes

    2 Ash Street Courtyard 12026 SE Ash, Portland, OR 97216

  • Ash Court Apartments

    ACTUAL CURRENT OPERATING

    Asking Price = $4,700,000 $100,000 $158.96 Fixed Expenses 6.01% 0.85 RE Taxes

    Cash On Cash Yr 1 = 5.17% 10.26 Insurance

    24.76% 3.13 Total Management

    Reserves

    Sales Price = $4,700,000 Amt Fncd = $3,448,700 Debt Coverage = 1.31 Int Rate = 3.47%

    Down Payment = $1,285,787 Annual Pmt = $216,136 $18,011 LTV = 0.73 Variable Expenses Marketing/Advertising

    Maintenance/Repairs

    Count Vacant Min Rent Avg Rent Max Rent SqFt/Unit Rent/Sqft/Mon % Total Rent CapEx

    1 Bed 23 1 $697.00 $780.43 $840.00 556.4 $1.40 47.0% Turnover

    2 bed / 1 bath 24 1 $785.00 $842.58 $930.00 698.8 $1.21 53.0% Landscape

    Totals 47 2 $697.00 $812.17 $930.00 629.1 $1.29 100.0% Garbage

    Curr Vac Rate= 4.26% Total Sqft = 29568 Electricity/Gas

    Telephone / Computer

    Water/Sewer

    Misc

    Income

    Scheduled Rent Total Oper Expenses

    Vacancies Net Oper Income (NOI)

    Other Income

    RUBS

    Eff Gross Income (EGI)

    Annual Debt

    CashFlow Before Taxes

    Cash-Cash (Year 1) 5.17%

    $216,136 $7.31 $4,598.63 47.2%

    $66,446 $2.25 $1,413.75 14.5%

    $282,582 $9.56 $6,012 61.7%

    CFBT (Cash Flow Before Taxes) and Cash-Cash Return $/Sqft/Yr $/Unit/Yr % of EGI

    $175,046 $5.92 $3,724 38.3%

    $0 $0.00 $0 0.0%

    $2,273 $0.08 $48 0.5%

    $4,061 $0.14 $86 0.9%

    $0 $0.00 $0 0.0%

    $656 $0.02 $14 0.1%

    $33,842 $1.14 $720 7.4%

    0.0%

    $19,975 $0.68 $425 4.4%

    Total $/Yr $/Sqft/Yr $/Unit/Yr % of EGI

    $457,629 $15.48 $9,737 100.0%

    $7,050 $0.24 $150 1.5%

    $58,193 $1.97 $1,238 12.7%

    $24,656 $0.83 $525 5.4%

    $12,640 $0.43 $269 2.8%

    $11,702 $0.40 $249 2.6%

    $7,746 $0.26 $165 1.7%

    Monthly Pmt =

    Rent = Actuals, Income from 01-Jan-17 thru 30-Jun-17 Annnualized

    $458,064 $15.49

    Total Operating Income & Expenses (@ Vac Factor = 3% of gross income)

    Total $/Yr

    -$13,729

    $5,548

    $/Sqft/Yr

    -$0.46

    $0.19

    $/Unit/Yr

    $9,746

    -$292

    $118

    % of EGI

    100.1%

    -3.0%

    1.2%

    Metrics / Financing / Income Operating Expenses / Cash Flow

    Unit Mix and Income as of 27-Jul-17 Rent Roll

    Cap Rate = Breakeven Ratio =

    Gross Rent Multiplier (GRM) =

    7 Year IRR (internal Rate of Return) = Payback Period (Years @ IRR) =

    Proposed 1st Financing

    Financial Metrics $/Unit = $/SqFt =

    Operating Expenses from 01-Jan-17 thru 30-Jun-17 Annualized Total $/Yr $/Sqft/Yr $/Unit/Yr % of EGI

    $0 $0.00 $0 0.0%

    $0 $0.00 $0

  • Ash Court Apartments

    INCOME & EXPENSE NOTES

    * Operating expenses actuals from 1 Jan 17 – 1 Jul 17 annualized

    * Rents actual from 25 July 17 rent roll – Vacants have accepted applications.

    * Need to assume new HUD loan at 3.47% 35-year. Monthly Payment Schedule: • $18,011.32 – 1 Jul 17 thru 1 Jun 22 • $13,075.90 - 1 Jul 22 thru 1 Jun 52 (payoff)

    * Passed physical HUD inspection. 3rd party inspection report, Phase I/II and ALTA Survey available with accepted offer. BUYER TO VERIFY.

    * Rents to reflect utility allowance for electric and water and are actual. BUYER TO VERIFY.

    * Each unit is sub-metered and is in process of putting RUBS in place.

    * Each unit has W/D hookups and Cadet space heaters.

    * 60% AMI w/ 60 year use restriction from Portland Housing Bureau.

    * Property tax abatement (10 years thru 2022). Non-profit owner or GP may be able to extend abatement – BUYER TO VERIFY.

  • Ash Court Apartments

    MARKET RATE BUYOUT NOTES

    * Buyout Amount to Portland Housing Bureau = $593,894 ($12,636/unit) thru 1 Nov 17

    * Buyout amount NOT FINAL UNTIL CLOSING – BUYER TO VERIFY

    * With Buyout, buyer to lose property tax exemption

    *