offering memorandum - loopnet...derek carroll [email protected] +1 636 251 0773 ollrath...
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ollrathAPARTMENTS
O F F E R I N G M E M O R A N D U M
19-UNIT APARTMENT COMMUNITYINDIANAPOLIS, INDIANA
AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times, different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”) and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arm’s length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).
CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your acknowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.
DISCLAIMERThis Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property”s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. PMStudio_January2019
Table of ContentsI. EXECUTIVE SUMMARY
II. PROPERTY DESCRIPTION
III. FINANCIAL OVERVIEW
IV. OFFERING INSTRUCTIONS
Investment Contact
Financing Contacts
KYLE [email protected]
+1 317 269 1064
+1 317 269 1184
DEREK [email protected]
+1 636 251 0773
ollrathAPARTMENTS
19-Unit Apartment Community
Indianapolis, Indiana
Executive Summary
Offering Price.. $1,395,000
Address.. 118 E. Palmer Street, Indianapolis, IN
Year Built.. 1926 with improvements in
2017 and 2018
Number of Units.. 19
Number of Buildings.. 1
Average Unit Size.. 562 SF
Average Rent.. $512
2019 Budgeted NOI.. $101,301
Type # of Units Square Feet Average Rent Average Rent per SF
1 Bedroom/1 Bath Studio 17 525 $448 $0.85
2 Bedroom/1 Bath AirBNB 2 1,200 $1,600 $1.33
Total 19
Average 562 SF $512 $0.91
4 VOLLRATH APARTMENTS
Regional Map
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5EXECUTIVE SUMMARY
Retail Map
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6 VOLLRATH APARTMENTS
7EXECUTIVE SUMMARY
Property Description Vollrath Apartments is a 19-unit apartment community
with street-level retail in an incredible location between
Meridian Street and Madison Avenue just South of
downtown Indianapolis. Constructed in 1926 with
numerous improvements made over the last 24 months,
this investment opportunity is stabalized and cash flowing
well. Only minutes from downtown Indianapolis, the
neighborhood is experiencing rapid gentrification. This
property is well positioned for increased future rent rates.
Property DescriptionLocation
Vollrath Apartments is located exactly one mile South of the
heart of Downtown Indianapolis. Known for its walkability,
Downtown Indianapolis boasts many of the country’s
best restaurants, performance arts venues, major league
and minor league sports, museums, parks, and walking
and biking trails. In short, this location offers a plethora of
opportunities for dining, shopping, and entertainment within
a short drive (or walk) from the apartment community.
LayoutHoused in one structure at the corner of Talbott Street and Palmer Street, there are nineteen (19) apartment units along
with three (3) street-level retail spaces. The 19 apartments consist of 17 studios, 1 bed/1 bath units; and 1, 2 bed/1 bath unit. The
studio apartments average 525 SF each and rent for $448/month. The 2 bed/1bath is accessed via a private entrance from the
street and has been converted to an AirBNB, is 1200 SF and averages $1600 per month. Due to the success of the first AirBNB
conversion, one of the retail spaces was also converted to an AirBNB and has averaged $1400 per month since July 2018. The
other two retail units are leased to local businesses.
8 VOLLRATH APARTMENTS
DemographicsPOPULATION 1 MILE 3 MILE 5 MILE 10 MILE
2018 Population - Current Year Estimate 10,052 93,121 236,698 794,221
2023 Population - Five Year Projection 10,341 97,244 244,949 820,114
2010 Population - Census 9,907 86,249 223,315 754,979
2000 Population - Census 11,517 93,315 242,771 729,069
2010-2018 Annual Population Growth Rate 0.18% 0.93% 0.71% 0.62%
2018-2023 Annual Population Growth Rate 0.57% 0.87% 0.69% 0.64%
HOUSEHOLDS
2018 Households - Current Year Estimate 3,813 37,773 94,424 315,886
2023 Households - Five Year Projection 3,938 39,934 97,951 325,374
2010 Households - Census 3,724 34,216 88,895 302,632
2000 Households - Census 4,251 36,274 96,373 296,017
2010-2018 Annual Household Growth Rate 0.29% 1.21% 0.73% 0.52%
2018-2023 Annual Household Growth Rate 0.65% 1.12% 0.74% 0.59%
2018 Average Household Size 2.6 2.3 2.42 2.46
HOUSEHOLD INCOME
2018 Average Household Income $48,734 $52,941 $50,396 $62,533
2023 Average Household Income $57,351 $63,139 $59,626 $72,923
2018 Median Household Income $32,761 $35,135 $35,576 $45,758
2023 Median Household Income $38,228 $41,213 $41,105 $52,980
2018 Per Capita Income $18,985 $22,411 $20,676 $25,157
2023 Per Capita Income $22,446 $26,814 $24,404 $29,206
HOUSING UNITS
2018 Housing Units 5,221 47,126 117,938 363,229
2018 Vacant Housing Units 1,408 27.00% 9,353 19.80% 23,514 19.90% 47,343 13.00%
2018 Occupied Housing Units 3,813 73.00 37,772 80.20 94,424 80.10% 315,886 87.00%
2018 Owner Occupied Housing Units 1,372 26.30% 12,668 26.90% 39,993 33.90% 165,735 45.60%
2018 Renter Occupied Housing Units 2,441 46.80% 25,104 53.30% 54,431 46.20% 150,151 41.30%
EDUCATION
2018 Population 25 and Over 6,614 61,701 157,379 526,408
HS and Associates Degrees 3,320 50.20% 30,937 50.10% 90,884 57.70% 303,590 57.70%
Bachelor's Degree or Higher 1,361 20.60% 15,697 25.40% 31,751 20.20% 142,845 27.10%
PLACE OF WORK
2018 Businesses 455 6,149 9,967 25,472
2018 Employees 8,063 181,980 242,196 454,976
9PROPERTY DESCRIPTION
Financial OverviewDate Where Description P&L Category Amount
10/2/2018 Mary Roell Upstairs Airbnb clean & all entryways Airbnb cleaning $ 130.00
10/5/2018 Lowes Shelving for #16 new tenant Improvements and Supply $ 18.17
10/9/2018 Lowes Toilet seat for #14 Maintenance $ 13.89
10/10/2018 IPL Power and Lights Monthly Payment $ 698.21
10/12/2018 Virgin Mobile Vollrath phone line Monthly Payment $ 38.45
10/13/2018 Mary Roell 1 upstairs & 1 downstairs Airbnb cleaning Airbnb cleaning $ 100.00
10/16/2018 US Post office Certified letter #15 and stamps Supplies $ 13.95
10/16/2018 Republic Services Dumpster pickup Monthly Payment $ 149.04
10/16/2018 Brighthouse/Spectrum Cable access for apts Monthly Payment $ 261.64
10/19/2018 Family Dollar Suppies for Airbinb Improvements and Supply $ 29.75
10/22/2018 Brighthouse/Spectrum Wifi for Airbnb's Monthly Payment $ 74.98
10/23/2018 Matt Newett 4 Airbnb cleans 2 on 10/18 2 on 10/23 Airbnb cleaning $ 200.00
10/23/2018 Citizens Energy Water and Gas Monthly Payment $ 956.79
10/25/2018 Matt Newett 1 Airbnb cleaning Airbnb cleaning $ 50.00
10/29/2018 Mary Roell Upstairs and Downstairs Airbnb Cleaning Airbnb cleaning $ 100.00
10/30/2018 Reliable Water Services Water heaters Monthly Payment $ 247.71
10/30/2018 Garage & locksmith New mailbox lock and key for #17 Maintenance $ 140.00
10/31/2018 Property Taxes Property Taxes Tax $ 433.86
10/31/2018 Jordan Realty 10% Management Fee Building Management $ 1,096.50
10/31/2018 Jordan Realty 5% Airbnb Fee Airbnb Management $ 112.85
Expense TOTAL $ 4,865.79
10/31/2018 Airbnb income October income Airbnb income $ 2,257.00
10/31/2018 Vollrath October residential rent collected Income $ 8,165.00
10/31/2018 Victory Restoration Ministry Monthly rent Commercial income $ 2,050.00
10/31/2018 Jordan Monthly rent Commercial income $ 750.00
Income TOTAL $ 13,222.00
Profit/Loss: $ 8,356.21
October 2018 Profit and LossTrailing 9 months average produces a profit of $7,658.26/month
10 VOLLRATH APARTMENTS
The Portfolio is being offered exclusively by CBRE, Inc. to select qualified investors. This is a confidential, allcash sale investment offering being presented to investors on a principal-only basis.
Investors are requested to bid based on 2019 net operating income of $ 101,301 .
In evaluating offers, Ownership will consider all circumstances relating to each proposal, including but not limited to:• Offering price• Contingencies• Timing of close• Financial capacity to perform• Proposed capitalization structure• Experience in similar transactions
All offers must be in writing and include the following:• The purchase price and capitalization rate based on the current net operating income of $ 101,301 . • The source of the purchaser’s capital (including debt and equity)• The amount of earnest money deposit• A detailed list of contingencies, including but not limited to committee approvals, required to close thetransaction• A detailed outline of the proposed schedule and timing for the due diligence period and closing
CBRE will assist prospective investors in arranging accompanied on-site inspections. Any and all on-siteinspections must be arranged through CBRE. CBRE reserves the right to accept a preemptive offer at any point in the marketing process.
Offering Instructions
11FINANCIAL OVERVIEW
© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. Any projections, opinions, or estimates are subject to uncertainty. The information may not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. PMStudio_January2019
ollrathAPARTMENTS
Investment Contact Financing ContactsKYLE [email protected]
+1 317 2691064
+1 317 269 1184
DEREK [email protected]
+1 636 251 0773