lubbock sfr portfolio - loopnet€¦ · portfolio (“portfolio”) consisting of 45 single-family...

JORDAN CORTEZ Managing Principal

214-556-1951 [email protected]

LUBBOCK SFR PORTFOLIO45 RENTAL HOMES

JUSTIN TIDWELL Director


MASON JOHN Associate


LUBBOCK SINGLE-FAMILY RENTAL PORTFOLIO | 2

INVESTMENT OVERVIEWVanguard Real Estate Advisors is pleased to present the exclusive listing of the Lubbock Single-Family Rental Portfolio (“Portfolio”) consisting of 45 single-family homes (the “Homes”) in the Lubbock, TX Metropolitan Statistical Area (“Lubbock MSA”). The Homes are conveniently located throughout multiple neighborhoods in the cities of Lubbock (41 homes) and Slaton (4 homes), which is just 16 miles to the southeast, and in close proximity to many of the area’s major employers, national retailers, and restaurants. Built between 1925 and 1964, the Homes average a spacious 1,076 square feet with one-, two-, three-, and four-bedroom floor plans. The Portfolio is currently 100 percent occupied with many being long term tenants. Investors have the opportunity to purchase the Portfolio at a wholesale price significantly below replacement cost at an asking price of only $43.39 per square foot. This represents an in-place cap rate of 9.75 percent at the asking price. In addition to the strong in-place yield, the Portfolio allows investors further upside by simply increasing rents to market levels, as the current Seller has focused on keeping the Homes rented and not pushing rental rates. An investor could also choose to sell the homes individually at full market value to capitalize on the strong single-family home sales velocity taking place in the region.

Financing: The Lubbock SFR Portfolio is being offered on an All-Cash basis allowing for unrestricted financing options for a new investor.

PROPERTY OVERVIEW

Property Lubbock SFR Portfolio

Location Lubbock County, Texas(Cities of Lubbock & Slaton)

Price $2,100,000

Price per Unit $46,667

Price per Square Foot $43.39

Number of Units 45 Units

Year Built 1925 - 1964

Net Rentable Square Feet 48,402 SF

Average Unit Size 1,076 SF

Average Market Rent per Unit $594

Average Market Rent per SF $0.55

Occupancy 100%

* Rents and Occupancy as of September 27, 2018


INVESTMENT HIGHLIGHTSWholesale Pricing• Priced below market to sell as a Portfolio• New investor has option to re-sell individually at market value or continue to operate as a Portfolio

Below Market Rents • Immediate upside by simply increasing rents to market levels• Seller has focused on keeping 100% occupancy rather than pushing rents

Attractive In-Place Returns• 100% Occupied• Stabilized Portfolio with many long term tenants• Potential 15.1% In-Place Cash-on-Cash Return

Value-Add Potential • Portfolio has never received a comprehensive rehab • A light value-add (paint & floors) could result in a significant rent increase

All Cash Opportunity • Portfolio is being offered on an All Cash basis, allowing a new investor to place new debt on the deal

LUBBOCK MSA LARGEST EMPLOYERSEMPLOYER INDUSTRY EMPLOYEES

Texas Tech University Education 5,677

Covenant Health Healthcare 5,500

United Supermarkets, LLC Supermarkets 3,700

University Medical Center Healthcare 3,549

Lubbock ISD Education 3,527

Texas Tech University Health Sciences Center Education 3,378

City of Lubbock Government 2,246

Wal-Mart Stores, Inc. Supercenter 1,810

Lubbock County Government 1,120

Frenship ISD Education 1,064

Lubbock Cooper ISD Education 900

Interim HealthCare of West Texas Healthcare 896

Caprock Home Health Services, Inc. Healthcare 750

Lubbock Christian University Education 717

VXI Data Solutions 700

Grace Medical Clinic Healthcare 600

Lubbock State Supported Living Center DADS Healthcare 540

Suddenlink Communications Telecommunications 518

UMC Physician Network Services Healthcare 517

Source: Lubbock Economic Development Alliance


LOCATION OF THE 45 HOMES THROUGHOUT LUBBOCK COUNTY

41 homes in Lubbock, TX4 homes in Slaton, TX

LUBBOCK SINGLE-FAMILY RENTAL PORTFOLIO | 5 LIT TLE ROCK SINGLE-FAMILY RENTAL PORTFOLIO | 5


AREA OVERVIEW

The City of Lubbock is located at the heart of West Texas. Known as the “Hub City,” Lubbock is an economically diverse city with industries ranging from manufacturing, agriculture, wholesale and retail trade services to government, education, and healthcare. There are multiple institutions of higher learning, and Lubbock is the healthcare hub of the Texas South Plains and yet still relies heavily on its roots in the agriculture industry. Within the city limits there is a population of approximately 260,624 people and within the county a population of 316,922 according to the latest U.S. Census estimates. Lubbock County has a land area of 901 square miles and combined with Crosby and Lynn Counties make up the Lubbock MSA with a total population of approximately 329,003 people.

Employment in Lubbock continues to grow as the unemployment rate of the Lubbock MSA steadily declines. Currently at 3.4 percent as of July 2018 per the U.S. Bureau of Labor Statistics, Lubbock MSA is 50 basis points below the national unemployment rate of 3.9 percent. Texas Tech University is experiencing record enrollment with over 38,000 students in 2018, with projections of over 40,000 students by 2020. Lubbock is the only city in the nation with a comprehensive university, a health sciences center, an agriculture college, and a law school in one location.

Texas Tech UniversitySTRONG RENTAL AND SINGLE-FAMILY HOME SALES MARKETThe Lubbock apartment market boasts an occupancy of 95.4 percent as of 2nd Quarter 2018 according to Reis, Inc, who also predicts the occupancy will continue to remain strong over the next five years and will be 95.5 percent by year-end 2022. Asking rents are up 1.8 percent year-over-year and Reis predicts they will rise by 2.3 percent annualized over the next 5 years. Per Costar, approximately 2,000 units have been added since 2015 but the supply wave seems to have peaked, as there are no units currently under construction as of September 2018. This should bode well for the Portfolio, with little additional supply in pipeline, new ownership will have further opportunity to increase rents due to limited supply.

The Lubbock MSA single-family home market is a strong one that mirrors the greater Texas home market. Limited inventory and steadily increasing demand are driving an increase in home values across the MSA and the state. According to the 2nd quarter 2018 Texas Quarterly Housing Report the Lubbock MSA had a 3.1 percent year-over-year increase in median home price. Investors will be able to take advantage of the projected increase in home values as the Homes are being offered at wholesale and could be sold off at retail prices over the investment horizon if someone decided to undertake this disposition strategy.


OFFERING PROCEDURES

The Lubbock Single-Family Rental Portfolio is being offered to principals only, subject to the limiting conditions described in the Offering Memorandum and the Confidentiality Agreement. Prospective investors should recognize the following:

Property Inquiries – All property information inquires should be addressed to Vanguard. Please contact Justin Tidwell at 214-556-1955 ([email protected]) or Mason John at 214-556-1953 ([email protected]).

Property Tours – Property tours are highly recommended and will be offered upon request. To arrange a personal tour of the Property, please contact Justin Tidwell at 214-556-1955 ([email protected]) or Mason John at 214-556-1953 ([email protected]).

Purchase Offer Instructions – Purchase offers should be submitted on a Letter of Intent basis and should clearly reflect, at a minimum, the purchase price for the Property, earnest money deposit amounts, allocation of closing costs, due diligence period, and closing period.

Financing – The Portfolio is offered on an All-Cash basis.

Disclaimer – Owner reserves the right, at its sole discretion, to reject any and all offers to purchase the Portfolio and/or to terminate discussions with any prospective investors, at any time, with or without notice. Owner shall not be bound until a mutually agreed contract is executed by and delivered to all parties.

American Windmill Museum

Buddy Holly Center

VANGUARD REAL ESTATE ADVISORS15400 Knoll Trail Drive, Suite 380Dallas, Texas 75248www.VanguardREA.com

CONTACT INFORMATION

JORDAN CORTEZManaging [email protected]

JUSTIN [email protected]

MASON [email protected]

Lubbock Single-Family Rental Portfolio 45 Rental Homes | Lubbock MSA, TX

JORDAN CORTEZManaging [email protected]

JUSTIN [email protected]

MASON [email protected]

INFORMATION ABOUT BROKERAGE SERVICESTexas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS:• A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker.• A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (a client is the person or party that the broker represents):• Put the interests of the client above all others, including the broker’s own interests;• Inform the client of any material information about the property or transaction received by the broker;• Answer the client’s questions and present any offer to or counter-offer from the client; and• Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner’s agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner’s agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH – INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. A broker who acts as an intermediary:

• Must treat all parties to the transaction impartially and fairly;• May, with the parties’ written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party

to the transaction.• Must not, unless specifically authorized in writing to do so by the party, disclose:

• that the owner will accept a price less than the written asking price;• that the buyer/tenant will pay a price greater than the price submitted in a written offer; and• any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH:• The broker’s duties and responsibilities to you, and your obligations under the representation agreement.• Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Licensed Broker/Broker Firm Name or Primary Assumed Business Name: Vanguard Real Estate Advisors | License No. 9003054 | [email protected] | 214-556-1951 Designated Broker of Firm: Jordan Cortez | License No. 494942 | [email protected] | 214-556-1951 Licensed Supervisor of Sales Agent/Associate: Justin Tidwell | License No. 647170 | [email protected] | 214-556-1955Sales Agent/Associate: Mason John | License No. 682887 | [email protected] | 214-556-1953

lubbock sfr portfolio - loopnet€¦ · portfolio (“portfolio”) consisting of 45 single-family...

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