regency 59 multifamily - $150,000 price reduction...phoenix, az 85017 $2,700,000 26,808 sf $100.72...

SVN | Rich Investment Real Estate Partners | 10940 Wilshire Blvd., Suite 1600, Los Angeles, CA 90024 SALE BROCHURE

REGENCY 59MULTIFAMILY -$150,000 PRICEREDUCTION4512 N. BLACK CANYON HIGHWAYPHOENIX, AZ 85017

Michael Chang BRE#01880895Vice [email protected] #01880895

Michael FinchSenior Vice [email protected]

Jeff ClineSenior Vice [email protected]

OFFERING SUMMAROFFERING SUMMARYY

Sale Price: $2,700,000

Number Of Units: 59

Pro Forma Cap Rate: 7.5%

Cap Rate: 7.22%

Current NOI: $194,950

Lot Size: 1.55 Acres

Year Built: 1964

Building Size: 26,808

Renovated: 2014

Zoning: M-H

Market: Phoenix

Submarket: Northwest Phoenix

Price / SF: $100.72

PROPERPROPERTTY HIGHLIGHTSY HIGHLIGHTS

• Ideal Value-Add Opportunity at Low Price Per SF & Unit

• Partially Renovated in 2014

• Immediate Upside - 8.1% CAP on Pro Forma

• 18% Upside w/ approx. $170,000 CapEx - 9% CAP

• Freeway Exposure and Easy Access to the I-17 Black Canyon Freeway

DEMOGRAPHICSDEMOGRAPHICS

00.5 MILES.5 MILES 1 MILE1 MILE 1.5 MILES1.5 MILES

Total Households 3,565 9,791 18,716

Total Population 11,319 32,319 60,353

Average HH Income $32,196 $38,097 $40,358

REGENCY 59 MULTIFAMILY | 4512 N. BLACK CANYON HIGHWAY PHOENIX, AZ 85017 SVN | Rich Investment Real Estate Partners |

Executive Summary


*$150,000 Price Reduction

Regency 59 consists of 15 separate single story buildings constructed in 1964 spanning over 1.55 acresacross 6 adjacent parcels. With 59 units available, the property offers a unit mix of (15) 2 bedroom/1 bath,(6) 1 bedroom/1 bath, and (38) studio units operating at historically high occupancy rate. The communityhas a gated filled-in pool, in which future Investors may convert into a small community courtyard toprovide residents with a quaint neighborhood vibe. The property had recently undergone a partialrenovation program in 2014. Under current ownership, each unit is renovated as the tenant vacates.Regency 59 is perfect for a savvy Investor looking to create immediate upside by implementing anaggressive management program to realize an 8% bump in rent growth instantly to obtain a 8.1% CAPreturn. Furthermore, a Buyer may also create additional value by spending approximately $2,000-$3,000per unit (or $170,000) to unlock additional upside of 18% rent growth to see a potentially rewarding +9%CAP project in the up and coming Phoenix sub-market at a relatively low price per unit and square feetbasis. Each unit is separately metered for electricity and contains wall AC units. Additional income may berealized by installing washer and dryer units in the underutilized laundry facility. Parking is abundantlyavailable with 45 spaces on-site and additional off-site street parking.

PROPERPROPERTTY OY OVERVERVIEWVIEW

Regency 59 is situated directly across from to the i-17 Black Canyon corridor with excellent freewayvisibility and access. Located just 1 mile south from Grand Canyon University, a significant contributor tolocal developments for nearby communities. The property is approximately 3 miles away from the lightrail, Metro Center Mall, and near the i-10 freeway providing tenants with nearby access to public transitand main freeway arteries. Surrounded by other residential communities, the property provides a greatneighborhood feel for residents.

LLOCOCAATION OTION OVERVERVIEWVIEW

Property Description

SSALE PRICEALE PRICE $2,$2,700700,,000000

LLOCOCAATION INFTION INFORMAORMATIONTION

Building Name Regency 59 Multifamily

Street Address 4512 N. Black Canyon Highway

City, State, Zip Phoenix, AZ 85017

County/Township Maricopa

Market Phoenix

Parking Surface

Cross Streets W. Campbell Ave

BUILDING INFBUILDING INFORMAORMATIONTION

Building Size 26,808 SF

Average Unit Size 425 SF

Number Of Buildings 15

Occupancy % 97.0

Number Of Floors 1

Year Built 1964

Last Renovated 2014

HVAC Wall

PROPERPROPERTTY DETY DETAILSAILS

Property Type Multifamily

Property Subtype Low-Rise/Garden

Zoning M-H

Lot Size 1.55 Acres

APN# 154-12-023C/-023D, -023E, -023F, -025C, -025E

Parking Surface

Number Of Parking 59

Electricity Separately Metered

Water/Sewer Master Metered

PPARKING & TRANSPORARKING & TRANSPORTTAATIONTION

Parking Type Surface


Property Details

SSALE HIGHLIGHTSALE HIGHLIGHTS

• Perfect Value-Add Opportunity at Low Basis

• Partially Renovated in 2014

• Immediate upside - 8.1% CAP on Pro Forma

• 18% Upside w/ $170,000 CapEx - +9% CAP

• Separately Metered for Electricity (Except for 4 Units)

• Fully Gated Community

• 45 On-Site Surface Parking

• Central Courtyard

• Freeway Exposure and Easy Access to the I-17 Black Canyon Freeway

• Additional Income Potential By Adding a Laundry Facility

• High Occupancy Rate Building

• 1-Mile Away from Grand Canyon University

INVESINVESTMENT HIGHLIGHTSTMENT HIGHLIGHTS

• Attractive $45,762 Price Per Unit

• Going in over 7% CAP at reduced price

• 60,000+ Population in a 1.5 mile Radius

• Phoenix, AZ rated as #1 Housing Market in 2017 (Per AZcentral.com)

• Top City for Overall Growth, Nationwide


Complete Highlights

UNIT TUNIT TYPEYPE CCOUNTOUNT % T% TOOTTALAL SIZE (SIZE (SF)SF) MARKET RENTMARKET RENT MARKET RENT WMARKET RENT W/ C/ CAPEXAPEX MARKET RENTMARKET RENT/SF/SF

2BD/1BA 15 25.4 600 $699 $750 $1.25

1BD/1BA 6 10.2 450 $535 $600 $1.33

Studio + 12 20.3 300 $425 $495 $1.65

Studio 26 44.1 250 $400 $450 $1.80

TTootals/Atals/Avvereragesages 5959 100%100% 21,80021,800 $29$29,,195195 $32,490$32,490 $1.49$1.49


Unit Mix Summary

INVESINVESTMENT OTMENT OVERVERVIEWVIEW CURRENTCURRENT PRO FPRO FORMAORMA PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX

Price $2,700,000 $2,700,000 $2,870,000Price per Unit $45,762 $45,762 $48,644GRM 8.4 7.7 7.3CAP Rate 7.2% 8.1% 9.0%Cash-on-Cash Return (yr 1) 9.73 % 13.25 % 15.13 %Total Return (yr 1) $116,013 $140,853 $179,843Debt Coverage Ratio 1.54 1.74 2.05

OPERAOPERATING DTING DAATTAA CURRENTCURRENT PRO FPRO FORMAORMA PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX

Gross Scheduled Income $322,740 $350,340 $391,440Other Income $3,000 $3,000 $5,000Total Scheduled Income $325,740 $353,340 $396,440Vacancy Cost $16,137 $17,517 $19,572Gross Income $309,603 $335,823 $376,868Operating Expenses $114,653 $116,033 $118,088Net Operating Income $194,950 $219,790 $258,780Pre-Tax Cash Flow $68,586 $93,426 $132,416

FINANCING DFINANCING DAATTAA CURRENTCURRENT PRO FPRO FORMAORMA PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX

Down Payment $705,000 $705,000 $875,000Loan Amount $1,995,000 $1,995,000 $1,995,000Debt Service $126,364 $126,364 $126,364Debt Service Monthly $10,530 $10,530 $10,530Principal Reduction (yr 1) $47,427 $47,427 $47,427


Financial Summary

INCINCOME SUMMAROME SUMMARYY CURRENTCURRENT PER SFPER SF PRO FPRO FORMAORMA PER SFPER SF

Rental Income $322,740 $12.04 $350,340 $13.07Other Income(App. Fees, Late Fees, Laundry Income) $3,000 $0.11 $3,000 $0.11

GrGross Ioss Incncomeome $325,$325,774040 $12.$12.1515 $353,340$353,340 $13.$13.1818

EXPENSE SUMMAREXPENSE SUMMARYY CURRENTCURRENT PER SFPER SF PRO FPRO FORMAORMA PER SFPER SF

Repairs & Maintenance $17,700 $0.66 $17,700 $0.66Utilities - Water & Sewer $23,454 $0.87 $23,454 $0.87Electricity $4,356 $0.16 $4,356 $0.16Management Fees (5%) $16,137 $0.60 $17,517 $0.65Contract Services $8,850 $0.33 $8,850 $0.33Property Taxes 2016 $10,194 $0.38 $10,194 $0.38Insurance $8,582 $0.32 $8,582 $0.32Pest Control $1,176 $0.04 $1,176 $0.04Payroll $14,400 $0.54 $14,400 $0.54City Tax $6,540 $0.24 $6,540 $0.24Trash $3,264 $0.12 $3,264 $0.12

GrGross Expensesoss Expenses $114,$114,653653 $4.28$4.28 $116,$116,033033 $4.33$4.33

NNeet Opert Operaating Iting Incncomeome $194,$194,950950 $7$7.27.27 $219$219,,790790 $8.20$8.20


Income & Expenses

INCINCOME SUMMAROME SUMMARYY PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX PER SFPER SF

Rental Income $391,440 $14.60Other Income(App. Fees, Late Fees, Laundry Income) $5,000 $0.19

GrGross Ioss Incncomeome $396,440$396,440 $14.$14.7979

EXPENSE SUMMAREXPENSE SUMMARYY PRO FPRO FORMA WORMA W/ C/ CAPEXAPEX PER SFPER SF

Repairs & Maintenance $17,700 $0.66Utilities - Water & Sewer $23,454 $0.87Electricity $4,356 $0.16Management Fees (5%) $19,572 $0.73Contract Services $8,850 $0.33Property Taxes 2016 $10,194 $0.38Insurance $8,582 $0.32Pest Control $1,176 $0.04Payroll $14,400 $0.54City Tax $6,540 $0.24Trash $3,264 $0.12

GrGross Expensesoss Expenses $118,$118,088088 $4.40$4.40

NNeet Opert Operaating Iting Incncomeome $258,$258,780780 $9$9..6565


Income & Expenses


Additional Photos

Regency 59 Multifamily


Regional Map

Location Maps


SUBJESUBJECT PROPERCT PROPERTTYY

4512 N. Black Canyon Highway | Phoenix, AZ 85017

$2,700,000Sale Price: 1.55 ACLot Size:

1964Year Built: 26,808 SFBuilding SF:

$100.72Price PSF: 59No. Units:

$45,763Price / Unit: 8.37GRM:

7.22%Cap: $194,950NOI:

11

MOUNTMOUNTAIN RIDGE APAIN RIDGE APARARTMENTSTMENTS

9431 N Cave Creek Rd | Phoenix, AZ 85020




$43,548Price / Unit: 12/06/2016Closed:

100%Occupancy:

Class C Apartments Building 62 Units of 47,820 SF Sold on 12/6/2016 for $2,700,000

11

22

ROMA APROMA APARARTMENTSTMENTS

801-805 E Roma Ave | Phoenix, AZ 85014

$686,000Sale Price: 1.07 ACLot Size:



$52,769Price / Unit: 6.5%CAP:

03/17/2017Closed: 100%Occupancy:

$44,590NOI:

Class C Apartments Building 13 Units of 10,350 SF Sold on 3/17/2017 for $686,000

22


Sale Comps

33

DEVDEVONSHIRE APONSHIRE APARARTMENTSTMENTS

2419 W Devonshire Ave | Phoenix, AZ 85015





02/02/2017Closed: 100%Occupancy:

$23,680NOI:


33

44

GOLDEN KEY APGOLDEN KEY APARARTMENTSTMENTS

3675 W Osborn Rd | Phoenix, AZ 85019





03/30/2017Closed: $282,555NOI:

Class C Apartments Building 91 Units of 62,363 SF Sold on 3/30/2017 for $4,550,000 -Research Complete

44

55

SUN GARDEN APSUN GARDEN APARARTMENTSTMENTS

4214 N 10th St | Phoenix, AZ 85014




$49,166Price / Unit: 11/28/2016Closed:

100%Occupancy:


55


Sale Comps


SUBJESUBJECT PROPERCT PROPERTTYY PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CCAPAP GRMGRM # OF UNITS# OF UNITS

RRegencegency 59 My 59 Multifultifaamilymily

4512 N. Black Canyon Highway

Phoenix, AZ 85017

$2,700,000 26,808 SF $100.72 $45,763 7.22% 8.37 59

SSALE CALE COMPSOMPS PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CCAPAP GRMGRM # OF UNITS# OF UNITS CLCLOSEOSE

MMounountain Ridge Apatain Ridge Aparrtmentmentsts9431 N Cave Creek RdPhoenix, AZ 85020

$2,700,000 47,820 SF $56.46 $43,548 - - 62 12/06/2016

RRoma Apaoma Aparrtmentmentsts801-805 E Roma AvePhoenix, AZ 85014

$686,000 10,350 SF $66.28 $52,769 6.5% - 13 03/17/2017

DeDevvonshironshire Apae Aparrtmentmentsts2419 W Devonshire AvePhoenix, AZ 85015

$320,000 3,492 SF $91.64 $53,333 7.4% - 6 02/02/2017

Golden KGolden Keey Apay Aparrtmentmentsts3675 W Osborn RdPhoenix, AZ 85019

$4,550,000 62,363 SF $72.96 $50,000 6.21% - 91 03/30/2017

Sun GaSun Garrden Apaden Aparrtmentmentsts4214 N 10th StPhoenix, AZ 85014

$590,000 7,100 SF $83.10 $49,166 - - 12 11/28/2016

PRICEPRICE BLDG SFBLDG SF PRICE/SFPRICE/SF PRICE/UNITPRICE/UNIT CCAPAP GRMGRM # OF UNITS# OF UNITS CLCLOSEOSE

TTootals/Atals/Avvereragesages $1,$1,776969,200,200 26,225 SF26,225 SF $67$67.46.46 $48,$48,007766 6.6.7%7% -- 36.836.8

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22

33

44

55

Sale Comps Summary

4512 N. Black Canyon Highway | Phoenix, AZ 85017SUBJESUBJECT PROPERCT PROPERTTYY

11 9431 N Cave Creek RdPhoenix, AZ 85020

MOUNTMOUNTAIN RIDGE APAIN RIDGE APARARTMENTSTMENTS22 801-805 E Roma Ave

Phoenix, AZ 85014

ROMA APROMA APARARTMENTSTMENTS33 2419 W Devonshire Ave

Phoenix, AZ 85015

DEVDEVONSHIRE APONSHIRE APARARTMENTSTMENTS44 3675 W Osborn Rd

Phoenix, AZ 85019

GOLDEN KEY APGOLDEN KEY APARARTMENTSTMENTS

55 4214 N 10th StPhoenix, AZ 85014

SUN GARDEN APSUN GARDEN APARARTMENTSTMENTS


Sale Comps Map


POPULAPOPULATIONTION 00.5 MILES.5 MILES 1 MILE1 MILE 1.5 MILES1.5 MILES

Total population 11,319 32,319 60,353

Median age 25.0 26.0 26.8

Median age (male) 25.9 26.3 27.0

Median age (Female) 24.6 25.9 26.8

HOUSEHOLDS & INCHOUSEHOLDS & INCOMEOME 00.5 MILES.5 MILES 1 MILE1 MILE 1.5 MILES1.5 MILES

Total households 3,565 9,791 18,716

# of persons per HH 3.2 3.3 3.2

Average HH income $32,196 $38,097 $40,358

Average house value $175,114 $162,946 $157,352

ETHNICITETHNICITY (%)Y (%) 00.5 MILES.5 MILES 1 MILE1 MILE 1.5 MILES1.5 MILES

Hispanic 63.0% 66.9% 64.2%

RARACE (%)CE (%)

White 51.9% 56.6% 58.8%

Black 12.0% 8.6% 7.4%

Asian 4.8% 3.3% 2.9%

Hawaiian 0.0% 0.2% 0.5%

American Indian 3.0% 2.6% 2.3%

Other 25.2% 27.0% 26.7%

* Demographic data derived from 2010 US Census

Demographics Map

regency 59 multifamily - $150,000 price reduction...phoenix, az 85017 $2,700,000 26,808 sf $100.72...

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