davall hills 10 home bfr investment portfolio olive … · 2019. 3. 1. · 6 8 10 12 14 16 18 all...

SVN | SFRhub Advisors2400 E. Arizona Biltmore Circle

Building 4, Suite 1400

Phoenix, Arizona 85016

Jeff ClineSVN | SFRhub Advisors

Executive Director 602.441.5354

[email protected]

Michael FinchSVN | SFRhub AdvisorsExecutive VP | Principal

[email protected]

Steve Legendre, CCIMSVN | Graham, Langlois & Legendre

Managing Director225.367.1515

[email protected]

DAVALL HILLS 10 HOME BFR INVESTMENT PORTFOLIO OLIVE BRANCH MS

OFFERING MEMORANDUM

VISIT WWW.SFRHUB.COM FOR MORE INFORMATION!

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved P #0263

2 Davall Hills 10 Home BFR Investment Portfolio Olive Branch MS

PROPERTY SUMMARY

Offering Summary

PROPERTY DESCRIPTION

Property Overview

HIGHLIGHTS

Property Highlights

LOCATION OVERVIEW

Location Info

Regional Map

ATTRACTIONS

Nearby Attractions

INVESTMENT OVERVIEW

Operating Pro Forma

Debt Overview

Financing Assumptions

DEMOGRAPHICS REPORT

ADVISORS BIO

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All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved SVN | SFRhub Advisors SVN | Graham, Langlois & Legendre, LLC

Five Reasons We KNOW You’ll Benefit with SFRhub Today, We Are Unlike Anyone Else...

Research with clean and verified intelligent decision data. We use proprietary processes gathering data from a variety of sources to generate our exclusive verified Advanced SFR Scrub Report™, powered by top-ranked Automated Valuation Model* (AVM) data, verifying 25-35 data points on each individual home within a portfolio.

Buyers and sellers can optimize their acquisition/disposition profitability by reducing opportunity cost as a result of targeted research and “cherry-picking”capability.

The nation’s largest SFR/Build-For-Rent (BFR) portfolio, single source Live Acquisition Board, operating in all 50 states with access to over a million buyers and sellers.

With 200 offices in 500 sub-markets we are not just another listing site. We are a full service SVN commercial real estate brokerage.

We are buyer/seller direct. Providing seamless due diligence, inspection, escrow, and transaction management support with a fully licensed real estate team.

Information is deemed reliable, but not guaranteed. Programs and pricing are subject to change.SVN | SFRhub Advisors SVN | Graham, Langlois & Legendre, LLC

PROPERTY SUMMARY

Sale Price:

Number of Homes:

Stabilized Year I Cap Rate:

Stabilized Year I NOI:

Avg. Building Size:

Market:

Sub-market:

Price/SF:

$2,660,500

10

5.65%

$150,193

2,422 sqft

Memphis MSA

Olive Branch MSA

$110

OFFERING SUMMARY

**Rates assume all homes are being operated at projected market rates.**


Home Type

4 Bdrms

5+ Bdrms

AverageSize/Type

2,427

2,401

Numberof Homes

8

2

AverageRent/SQ FT

$0.78

$0.85

AverageMonthly Rent

$1,900.00

$2,050.00


6 Portfolio Name

PROPERTY DESCRIPTION

PROPERTY OVERVIEW

This Build for Rent (BFR) investment portfolio allows a buyer to buy Class A step-up homes from an experienced BFR builder and developer in the exciting Memphis MSA. The homes are constructed to a high quality with beautiful and durable granite countertops, hardwood flooring, and stainless steel appliances. A few of the homes have been completed and the remaining homes will be completed by March 2019. The homes are located in Olive Branch, Mississippi which has top-rated schools as reported by Great Schools. Residents will be able to enjoy the quiet neighborhood while being only about 30 minutes from downtown Memphis and the employment centers.

The Memphis MSA has been experiencing strong employment growth. Part of this growth is because Memphis is “America’s

Distribution Center” and is home to the headquarters of FedEx and the second largest cargo airport, being fueled by the growth of e-commerce. Memphis is also home to first-class medical facilities, including the University of Tennessee medical school, St. Jude’s Children’s Research Hospital, and others. John Burns Real Estate Consulting ranks Memphis #6 on its Current Metro Ranking Matrix. This is based on the MSA obtaining a 2.3% YOY employment growth as of September 2018 and having strong projected rent growth and projected home value growth. The MSA also has a good median household income of approximately $53,500 with a low rent to income ratio of 21.5%. There were 495,596 households with an average of 2.66 people in the MSA in 2017. The estimated 2017 population for the MSA was 1,346,626 people, approximately 52.5% of whom rent.

This investment portfolio is comprised of ten homes. Eight of the homes have 4-bedrooms and are an average of 2,427 square feet with an average monthly

rent of $1,900. The remaining two homes are 5-bedroom homes with an average of 2,401 square feet and a monthly rent of $2,050. This portfolio will allow an investor to efficiently control ongoing capital expenditures because the homes will be new, built to a high standard, and be under warranty.



8 Portfolio Name

PROPERTY HIGHLIGHTS

• Go to www.SFRhub.com to custom search and view additional information!

• Remaining ten homes of a successful BFR (Build-For-Rent) community

• Opportunity to form a relationship with an experienced BFR developer and builder

• Additional homes in the area from this builder to increase portfolio size

• Top-rated school system

• Close to downtown Memphis and the employment centers

• Homes are either completed or will be completed during 1Q2019

• 5.65% projected stabilized year 1 projected cap rate

• New homes will need fewer repairs and maintenance and capital improvements for a number of years

• Average home size of 2,422 square feet

8 Portfolio Name

HIGHLIGHTS



10 Portfolio Name

LOCATION OVERVIEW

LOCATION INFO

Olive Branch is a medium-sized city located in the state of Mississippi. With a population of 37,435 people and eight constituent neighborhoods, Olive Branch is the ninth largest community in Mississippi. A noteworthy benefit of Olive Branch is the stellar schools. Great schools and the cost of living make Olive Branch a very attractive location for rental homes in the greater Memphis MSA. In 2017, Money Magazine ranked Olive Branch as the 5th Best Place to Live in the U.S.1

Memphis is a large city along the Mississippi River in Tennessee, world-known for blues, soul, and rock ‘n’ roll culture. Due to the central location and robust transit infrastructure, Memphis continues to be one of the nation’s

leading distribution and logistics centers. Approximately $83 billion of freight moves throughout Memphis each year whether through highways, waterways, runways, and even railways.

With a thriving population of 1,348,260, according to US Census, Memphis homes a lively art and culture scene. Surprisingly, as the abundance of small businesses, a growing surplus of jobs in R&D and STEM professions combined with the low cost of living, the area is attracting a large number of millennials. Mentioned before, the Memphis MSA has experienced incredible employment growth and according to John Burns Real Estate Consulting ranks Memphis at #6 in its Current Metro Ranking Matrix. The MSA also has a good median household income of approximately $53,500.


1 Olive Branch, Mississippi is MONEY’s No. 5 Best Place to Live in America.


REGIONAL MAP


12 Portfolio Name

ATTRACTIONS



NEARBY ATTRACTIONS

Memphis and the surrounding area has an appeal that attracts visitors by the millions each year. One of the most famous landmarks is Graceland, Elvis Presley’s former home. Residents and visitors alike are happy to travel around the city, going down to Beale Street, learning what is inside of the Memphis Pyramid and discovering the appeal. Summertime is when visitors really start to flow in, in May, the city hosts a number of festivals that bring in over 100,000 visitors. Its rich music scene is a magnet to artists looking to give their career momentum, and as a center of global transit and a crossroads of distribution, the area offers a wealth of job opportunities. Just a few minutes from Memphis and part of the MSA is Olive Branch, Mississippi. Here, visitors enjoy visiting the Wesson House, which is one of only three Dedicated Mississippi Landmarks in Desoto County. Laced with the southern charm, Olive Branch offers quality accommodations staffed by friendly professionals and charming bed & breakfast joints.



INVESTMENT OVERVIEW

INVESTMENT OVERVIEW


Cap Rate - Stabilized

Gross Yield

Net Operating Income (NOI)

Leveraged IRR

Unleveraged IRR

Leveraged Cash-On-Cash

Number of Homes

Asking Price

Asking Price Per Home

Asking Price/SQFT

10

$2,660,500

$266,050

$110

Year 1; T-12

5.65%

8.52%

$150,193

21.79%

11.05%

3.79%

Year 3; T-36

6.08%

9.04%

$161,684

23.49%

11.56%

5.23%

Year 5; T-60

6.54%

9.59%

$173,946

25.30%

12.10%

6.76%



OPERATING PRO FORMA

DEBT OVERVIEW


Loan-To-Value Ratio

Interest Rate

Loan Amortization in Years

FINANCING ASSUMPTIONS

70.00%

5.00%

30

Annual Rent

Average Monthly Lease Rate (P.S.F.)

Vacancy

Operating Expenses

Net Operating Income (NOI)

Year 1; T-12

$238,548

$0.82

5.00%

$76,427

$150,193

Year 3; T-36

$253,076

$0.87

5.00%

$78,737

$161,684

Year 5; T-60

$268,488

$0.92

5.00%

$81,117

$173,946

Debt Amount

Annual Debt Service Payments

Estimated Annual Market Valuation Appreciation (National)

Year 1; T-12

$1,834,874

$119,970

5.40%

Year 3; T-36

$1,775,631

$119,970

5.40%

Year 5; T-60

$1,710,172

$119,970

5.40%


16 Portfolio Name

DEMOGRAPHICS REPORT

Total Population

Median Age

Median Age (Male)

Median Age (Female)

Total Household

Total Person/Household

Avg. Household Income

Avg. House Value

DEMOGRAPHICS REPORT

3 Miles

34,085

35.2

33.5

36.1

12,454

2.7

$72,645

$171,082

5 Miles

82,160

34.7

32.6

35.9

29,186

2.8

$70,938

$165,705

10 Miles

299,025

35.3

33.1

37

111,064

2.7

$75,398

$223,104

*Demographic data derived from 2010 US Census



18 Portfolio Name

JEFFREY CLINE

Jeff Cline’s 40+ years of business leadership and commercial real industry expertise includes commercial real estate marketing, brokerage, large-scale finance, development and construction. Mr. Cline has lead as CEO in several commercial property segments including multi-family apartments, condominiums, high-rise, office buildings, industrial / warehouse, retail shopping centers and as a national leader in the SFR Portfolio investment segment. Jeff has been involved as a principal in $2+ billon of commercial real estate, construction and property funding.

As a Principal of SVN | SFRhub Advisors, Jeff is a co-founder which has developed an industry disrupting CRE digital transaction

platform. This new digital platform is changing the way the CRE industry markets, researches, analyzes and acquires commercial investment property. It is this platform that will be a the disruption and opportunity with what will soon become the ‘normal’ location, marketing, research, and transaction portal.

Executive Director

SVN | SFRhub Advisors2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, AZ 85016

T: 602.441.5354C: [email protected]

AZ #SA650889000

ADVISOR BIOGRAPHIES



MICHAEL FINCH

SVN | SFRhub Advisors leads the nations #1 SFR & BFR (Build For Rent) Investment Portfolio group. These portfolios are CRE investment grade portfolios ranging from 5 to 5,000 homes nationwide.

Michael Finch began his career in Commercial Real Estate Brokerage over 14 years ago in Phoenix, Arizona. He has developed broad local and national relationships with the top-ranked, high density, mid to large scale developers for Commercial Mixed Use & Multifamily Development.

As markets shifted in 2008, Michael leveraged lender relationships, formed in previous years, to plan distressed real estate dispositions for his buyer base. Michael was able to develop and grow these relationships to become an integral part of many clients acquisition and disposition teams. Michael has developed and managed extensive pipelines of lender owned assets, short sales, portfolio note sales, and traditional commercial real estate asset sales.

Michael has continued to deliver value and opportunities as market cycles have evolved. With an extensive national network, Michael has been successful and enjoys being an integral partner for client teams focused on large-scale income-producing portfolios, and more specifically having focused on Single Family Rental Portfolios and Build For Rent Investment Portfolios for many years now. Today, Michael is a Principal, Founder, and Executive Vice President in SFRhub Advisors, the leading SVN commercial real estate brokerage focused on Single Family Rental Portfolios & Build For Rent (BFR) Investment Portfolios sales on a national level. Michael is also a founding partner in SFRhub.com, a soon to be launched digital marketplace for Buyers & Sellers of SFR & BFR Investment Portfolios.

Executive VP | Principal

SVN | SFRhub Advisors2400 E. Arizona Biltmore CircleBuilding 4, Suite 1400Phoenix, AZ 85016

T: 602.441.5354C: [email protected]

AZ #SA576104000


20 Portfolio Name

STEVE LEGENDRE, CCIM

In August 2014, Steve Legendre, CCIM, along with Ben Graham, CCIM and Justin Langlois, CCIM, founded SVN | Graham, Langlois & Legendre (SVNGLL), a full-ser-vice commercial real estate brokerage firm based in Baton Rouge servicing Lou-isiana’s Gulf Coast. Legendre currently serves as Partner and Managing Director at SVNGLL, and as Partner at SVN | Gulf Partners, the firm’s New Orleans office that opened in April of 2016. With an over 22-year history in commer-cial real estate, Legendre focuses on helping clients with the acquisition and/or disposition of development land, as well as investment properties, across Louisiana and the Gulf South. Legendre’s vast local market experience and insight have earned him a reputation as the go-to source for site selection, as he deeply understands the nuances and analysis from both the developer and end-user perspective.

Earning a Bachelor’s Degree in Business from the University of New Orleans in 1991, Legendre began his commercial real estate career in 1995. Only six years lat-

er in 2001, Legen-dre achieved the highly coveted com-mercial real estate designation of Certified Commercial Investment Member (CCIM). Over the course of his career, Leg-endre has held several board positions including the Greater Baton Rouge Association of Re-altors (GBRAR) Trends Commit-tee, the GBRAR Commercial Invest-ment Division and the CCIM Louisiana Chapter.

Most recently in 2015, Legendre received the SVN® Achiever Award for ranking as one of the top producing SVN Advisors in the nation.

Managing Director

SVN | Graham, Langlois & Legendre6160 Perkins RoadSuite 200 Baton Rouge, LA 70808

T: [email protected]

MS #21202



22 Portfolio Name

INTELLIGENT DECISION DATA

ABOUT SVN | SFRhub ADVISORS

SFRhub is our exclusive research and data provider with end-to-end Intelligent Decision Data solutions. A complete, effective clean data sourcing, research and analysis is essential to all SFR Portfolio buyers and sellers. The exclusive SFRhub Advanced SFR Scrub Report is essential for all intelligent decisions, whether they’re operational, asset acquisition or disposition and the overall strategic asset plan.

Today’s most effective and intuitive clean and verified data solutions are comprised of

Our proprietary Advanced SFR Scrub Report™ supports the buyer and seller decision process with quality and real time intelligent decision data, enabling an analysis of every aspect of the opportunity.

Also proprietary are our exclusive accelerated contract documentation process, title insurance management, due-diligence period logistics and documentation, with the final close of escrow. Ultimately, these pieces combine for a seamless

reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics and prescriptive analytics.

SFRhub has knowledgeable and experienced individuals who work with data sources as true partners to help implement solutions that are forward-thinking, yet still based on industry knowledge and best practices.

decision-managed process – for both the buyer and seller.

SVN | SFRhub Advisor delivers the nation’s only single-family rental (SFR) portfolio Live Acquisition Board™ transaction platform.

In support, the dedicated, experienced, and professional SFR portfolio team has developed both an exclusive and conventional SVN | SFRhub Advisors program. In applying this advanced

technology, SVN | SFRhub Advisors becomes the nation’s sole SFR Portfolio Live Acquisition Board™ Transaction Platform, supporting both sellers and buyers of single-family residential rental investment portfolios. In addition, we feature existing asset as well as new-build home commercial investment portfolios nationally, anywhere from 5 to 5,000 homes.



DISCLAIMER

The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN® Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property.

The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor.

Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner.

The information contained herein is subject to change without notice and the recipient of these

materials shall not look to the Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property.

This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner’s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledge the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto.

To the extend Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase agreement shall bind the property and each prospective purchaser proceeds at its own risk.


2400 E. Arizona Biltmore Circle

Building 4, Suite 1400

Phoenix, Arizona 85016

www.SFRhub.com602.441.5354

6160 Perkins Road

Suite 200

Baton Rouge, LA 70808

www.SVNGLL.com225.367.1515

All SVN® Offices Independently Owned & Operated © 2018 SFRhub Advisors, LLC All Rights Reserved

davall hills 10 home bfr investment portfolio olive … · 2019. 3. 1. · 6 8 10 12 14 16 18 all...

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