available for sale 2837-2841 w. melvin street...• quality plumbing/lighting fixtures • new...

3200 East Camelback Road, Suite 100 | Phoenix, Arizona 85018 | 602-956-7777 | www.leearizona.com

FOR MORE INFORMATION, PLEASE CONTACT:

AVAILABLE FOR SALE

2837-2841 W. MELVIN STREETPHOENIX, ARIZONA

Nick [email protected] 602.474.9500

Todd [email protected] 602.474.9550

Ryan [email protected] 602.912.3526


TABLE OF CONTENTS

Property Information Offering Summary ................................................................................................................................................................................... 4

Property Overview .................................................................................................................................................................................. 5

Unit Amenities ......................................................................................................................................................................................... 6

Location

Aerial Overview ....................................................................................................................................................................................... 8

Financial Analysis Proforma ................................................................................................................................................................................................... 10

Why Buy? .................................................................................................................................................................................................. 11

Sales Comparables Sales Comparables Map ........................................................................................................................................................................ 13

Sales Comparables ................................................................................................................................................................................. 14

Why Phoenix?

Greater Phoenix Overview ..................................................................................................................................................................... 16

2

TABLE OF CONTENTS


PROPERTY INFORMATION

3

Lee & Associates is pleased to present the opportunity to acquire 2837-2841 W. Melvin Street. The 8 unit complex is comprised of 5 studios, 2 one bedroom units and 1 two bedroom unit. 2837-2841 W. Melvin Street consists of two block construction buildings and one wood-framed building, all single story with pitched asphalt shingle roofs. PRICE: $625,000 PROPERTY TOURS: By appointment only.

OFFERING SUMMARY

3200 East Camelback Road, Suite 100 | Phoenix, Arizona 85018 | 602-956-7777 | www.leearizona.com4


Units: 8 Year Built: 1962, Renovated 2017 Construction Type: (2) Block Construction, (1) Wood-Framed, Stucco

Style: Single-Story, Garden Style, Mid-Century Modern

PROPERTY OVERVIEW



• Individually metered

• All interiors have been upgraded within the last two years

• Faux wood laminate flooring in select units

• Two-tone paint scheme

• Replaced or repaired countertops

• Recently re-tiled showers and kitchen backsplash

• Quality plumbing/lighting fixtures

• New appliances in select units

• Security screen doors

• On-site laundry facility

UNIT AMENITIES




LOCATION

7


27TH

AVE

.

19TH

AVE

.

7TH

AVE

.

CEN

TRA

L AV

E.

MCDOWELL RD.

DOWNTOWNPHOENIX

VAN BUREN ST.35

TH A

VE.

43RD

AVE

.

BUCKEYE RD.

INDUSTRIALEMPLOYMENT

CAROL HAYDENHIGH SCHOOL

JB SUTTONELEMENTARY

WILLIAM R. SULLIVANELEMENTARY

LOCATION


FINANCIAL ANALYSIS

9


PROFORMA

10

FINANCIAL ANALYSIS2837-2841 W. Melvin Street

Phoenix, AZ 85009

Unit Type # of Units Size Current Avg. Rent Studio 5 366 570$ 1BD/1BA 2 460 675$ 2BD/1BA 1 852 716$ Total/Avg 8 559 615$

58,992$

Gross Scheduled RentMisc. IncomeExpenses

Income SummaryValue Percentage

GPRI/Economic Rent 58,992$ Less: Vacancy Loss (2,950)$ 5%Less: Loss To Lease/Bad Debt (885)$ 1.5%

Net Rental Income 55,158$ 7%Misc. Income 500$

Total Other Income 500$ Effective Gross Income (EGI) 55,658$

Expense SummaryValue Percentage

Insurance 3,185$ 6%Property Tax 1,299$ 2%Repairs & Maintenance 4,000$ 7%Management Fee 4,800$ 9%Utilities 3,780$ 7%

Replacement Reserves 2,000$ 4%Total Expenses 19,064$ 34%

Bottom LineValue Percentage

Effective Gross Income 55,658$ 100%Expenses With Reserves 19,064$ 34%

Net Operating Income 36,594$ 66%

6,957$

2,383$

Per Unit

162$

600$ 500$

398$

473$

4,574$

250$

Per Unit

2,383$

(369)$

6,957$

Market Avg

6,895$ 63$

63$

Per Unit7,374$

Actuals From Owner

Gross Annual Total

Current Rent

(111)$

Actuals From Owner

Current Avg. Rent

Information contained herein has been obtained from the owner of the property or from other sources that we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it.


WHY BUY?

2837-2841 W. Melvin Street is a single story, block construction complex with pitched roofs and renovated interiors. This property presents an opportunity

to make very manageable capital improvements to a low densisty complex that will allow for steady increases in rent levels.

Situated between Downtown Phoenix and the rapidly emerging Southwest Phoenix Industrial Submarket, 2837-2841 W. Melvin Street will continue to

draw in workforce tenants from two of Phoenix’s largest employment centers.

Additionally, current ownership has been very operationally sound, allowing the next owner to take over a stable tenant base that is already at near

market-rate rent levels.

WORKFORCE HOUSING RUB INCOME EXPECTED RENT GROWTH

Situated between Downtown Phoenix and the Southwest Phoenix Indsutrial submarket, there are a total of 273,726 daytime employees within a 5 mile radius of the property. The most prevalent types of business within the area consist of Manufacturing, Construction, and Wholesale.

The charging of RUBS (electric, water, sewer and trash) Income has not been implemented. Based on similar properties and sub-market comparable’s, a monthly RUBS charge of $25 per month is arguably very achievable. Applying this to all units equates to an additional ±$2,400 in annual income.

Forecasts for rent rate growth range from 5% to 7.4% (sources: Freddie Mac, REIS, Moody’s Analytics and Yardi Matrix). Using a conservative growth rate of 5%, the annual income increases by approximately ±$2,980.

11

FINANCIAL ANALYSIS


SALE COMPARABLES

12

3200 East Camelback Road, Suite 100 | Phoenix, Arizona 85018 | 602-956-7777 | www.leearizona.com3200 East Camelback Road, Suite 100 | Phoenix, Arizona 85018 | 602-956-7777 | www.leearizona.com

SALES COMPARABLES MAP

13

43RD

AVE

.

35TH

AVE

.

27TH

AVE

.

19TH

AVE

.

7TH

AVE

.

CEN

TRA

L AV

E.

THOMAS RD.

MCDOWELL RD.

VAN BUREN ST.

BUCKEYE RD.

1

2

3

4

5

6

7

8

9

10

11

SALE COMPARABLES


1 2 3 4 5

6 7 8 9 10 11

2837-2841 W. Melvin StreetPhoenix AZ, 85009• Units: 8• Year built: 1962, Renovated 2017• Sale date: TBD• Price: $625,000• Price/unit: $78,125

33 N. 30th DrivePhoenix, AZ 85009• Units: 3• Year built: 1976• Sale date: PENDING• Price: $219,000• Price/unit: $73,000

817 N. 40th AvenuePhoenix, AZ 85008• Units: 3• Year built: 1944• Sale date: 12/13/2017• Price: $355,000• Price/unit: $118,000

822 N. 40th DrivePhoenix, AZ 85009• Units: 9• Year built: 1982• Sale date: 8/31/2017• Price: $617,000• Price/unit: $68,555

2102 W. Lewis AvenuePhoenix, AZ 85009• Units: 2• Year built: 1947• Sale date: 6/6/2018• Price: $206,000• Price/unit: $103,000

2317 W. Adams StreetPhoenix, AZ 85009• Units: 3• Year built: 1936• Sale date: 1/1/2018• Price: $200,000• Price/unit: $66,666

326 N. 18th AvenuePhoenix, AZ 85007• Units: 2• Year built: 1926• Sale date: 5/15/2018• Price: $200,000• Price/unit: $100,000

2830 W. Pierce StreetPhoenix, AZ 85009• Units: 2• Year built: 1950• Sale date: 3/31/2018• Price: $130,000• Price/unit: $65,000

2145 W. Wilshire DrivePhoenix, AZ 85009• Units: 3• Year built: 1963• Sale date: 1/29/2018• Price: $299,000• Price/unit: $99,666

2922 W. Granada RoadPhoenix, AZ 85009• Units: 3• Year built: 1946• Sale date: 2/21/2018• Price: $185,000• Price/unit: $61,666

2849 W. Polk StreetPhoenix, AZ 85009• Units: 3• Year built: 1958• Sale date: 2/16/2018• Price: $219,333• Price/unit: $73,333

2701 W. McKinley StreetPhoenix, AZ 85009• Units: 4• Year built: 1944• Sale date: 1/15/2018• Price: $239,000• Price/unit: $59,750

SALES COMPARABLES

14

SALE COMPARABLES

South Mountain Fwy.

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Scottsdale

Phoenix Sky Harbor International Airport

Airpark

Deer ValleyAirport

Pim

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Price

Fwy.

Sun Valley Pkwy.

Grand Ave.

Papago Fwy.

Maricopa Fwy.

Superstition Fwy.

Santan Fwy.

Bla

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Red Mountain Fwy.

Pima .ywFAgua Fria Fwy.

85

MAIN ST. APACHE TRAIL

UNIVERSITY DR.

MCKELLIPS RD.

SOUTHERN AVE.

BASELINE RD.

DEA

N R

D.

WA

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N R

D.

VAL

V IS

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PIM

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D.

TATU

M B

LVD

.

CAVE

CR

EEK

RD.

LINCOLN DR.GLENDALE AVE.

PEORIA AVE.

CACTUS RD.

SHEA BLVD.

CAMELBACK RD.

INDIAN SCHOOL RD.

MCDONALD DR.

CEN

TRA

L A

VE.

44TH

ST.

CO

UN

TRY

CLU

BA

RIZ

ON

A A

VEN

UE

MES

A D

R.

BASELINE RD.

BELL RD.

GREENWAY RD.

PINNACLE PEAK RD.

CAREFREE HWY.

DYNAMITE BLVD.

7TH

ST.

HAPPY VALLEY RD.LAK

E P

LEA

SAN

T P

KW

Y.83

RD

AVE

.

THUNDERBIRD RD.

59TH

AVE

.

BUCKEYE RD.

YUMA RD.

BROADWAY RD.

LITC

HFI

ELD

RD

.

99TH

AVE

.

JAC

KR

AB

BIT

TR

.

MIL

L A

VE.

ELLIOT RD.

WARNER RD.

CHANDLER RD.

RAY RD.

CHANDLER BLVD.

24TH

ST.

32N

D S

T.

48TH

ST.

Salt River

43R

D A

VE.

PHOENIX

CAREFREE

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ANTHEM

DESERT HILLS

MESA

SCOTTSDALE

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SUNCITY

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GOODYEAR

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FOUNTAINHILLS

TEMPE

PEORIA

TOLLESON

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Existing Freeways

Proposed or Under Construction

NORT

H

GoodyearAirport

10

10

101

101

143

60

60

87

88202

51

Pies

tewa

Fwy.

17

17

303

74


FOR MORE INFORMATION, PLEASE CONTACT:

Nick [email protected] 602.474.9500

Todd [email protected] 602.474.9550

Ryan [email protected] 602.912.3526

20

CONTACT INFORMATION

available for sale 2837-2841 w. melvin street...• quality plumbing/lighting fixtures • new...

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