st. andrews om spread
TRANSCRIPT
A TWO- AND THREE- STORY, 228 UNIT GARDEN MULTIFAMILY INVESTMENT OPPORTUNITY IN JOHNS CREEK, GEORGIA
SAINT ANDREWS
SEAN P. HENRYPhone: 404.390.1140Email: [email protected]
3414 Peachtree Road NE, Suite 475Atlanta, GA 30326
Phone: 404.841.4844www.moranandco.com
JOEL K. SASSER Phone: 404.390.1141Email: [email protected]
JOHN S. HUCKABYPhone: 404.390.1142Email: [email protected]
Moran and Company is pleased to present St. Andrews (the “Property”), a two- and three-story, 228-unit, garden-style apartment community located in Johns Creek, Georgia – North Fulton County’s most affluent address.
Situated just north of what many consider to be Johns Creek’s busiest interchange (the intersection of Jones Bridge Road and Old Alabama Road), St. Andrews was built in 1995 in a lush, wooded area. St. Andrews is an extremely attractive opportunity for the value-add investor, as Johns Creek offers a strong-income location with supportable evidence of higher rental rates being achieved. In fact, the current owner is achieving premiums on 71 upgraded units at $215 for the one bedroom units, $250 for the two bedroom units, and $315 for the three bedroom units.
St. Andrews enjoys immediate access to the Johns Creek Technology Park (which employs more than 10,000 workers), and nearby dining and shopping destinations. St. Andrews also has the convenience of major retail brands nearby, including Publix, Target, Home Depot, Whole Foods, Workout Anytime, LifeTime Fitness, LA Fitness, CVS and other big-box stores and shopping centers.
Click here for a property video of St. Andrews
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Site Address
Site Location
DescriptionCountyLand AreaDensity 6.24 units per acreZoningYear Built
Parking
Current OccupancyCurrent Leased
Apartment UnitsAverage Unit SizeApartment Total SizeAverage Market RentAverage Market Rent/SFAverage In Place RentAverage In Place Rent/SF
Floor Plans Unit Count Unit Size SF % of Floor Plans1x1 (A1) 31 1,038 13.6%1x1 (A1) Renovated 13 1,038 5.7%2x2 (B1) 61 1,237 26.7%2x2 (B1) Renovated 31 1,237 13.6%2x2 (B2) 22 1,266 9.6%2x2 (B2) Renovated 11 1,266 4.8%3x2 (C1) 43 1,476 18.9%3x2 (C1) Renovated 16 1,476 7.1%Total/Average 228 Total (71 renovated) 1,265 100%
SITE DETAILS
AMENITY AND UNIT DETAILS
25, two- and three-story buildings
10055 Jones Bridge RoadJohns Creek, GA 30022Located at the intersection of St. Andrews Parkway and Jones Bridge Road in affluent Johns Creek, GA, with immediate access to Georgia 400 via Old Alabama Road.
Fulton County (North)36.55 acres
TR Townhouse Residential District1995
88.6% - occupancy accounts for units being renovated
$1,299
$1,217$0.96
9 Ft. Ceilings with Crown MoldingFireplaces with Italian Marble Hearths*
Renovated units include stainless steel appliances, granite countertops, glass tile backsplash, upgraded flooring, newly-faced cabinets, and lighting and hardware upgrades in kitchens, with new laminate countertops, new cabinets, canopy curved shower rods, and framed mirrors in bathrooms.
UNIT MIX
Controlled Access / Gated Private Garages Available
Tennis CourtsCar Care Center
Amenity Details
Dog Park Washer and Dryer Connections
Renovated Clubroom with Wi-Fi Cyber Café and Business CenterRenovated, 24 Hour Fitness Center
Swimming Pool with Sundeck and New Grill / Seating AreaAdditional Picnic and Grilling Areas
Private Balconies / PatiosLarge ClosetsGarden TubsMicrowaves
Minutes from Northpoint Mall and Verizon AmphitheaterExceptional N. Fulton County Schools
505 total spaces (428 open surface spaces, 53 detached garage spaces, and 24 accessible spaces); 2.2 spaces per unit
Laundry Facility Monitored Alarm System AvailableCovered School Bus Area Private Entries
Unit Details
$1.03
98.2%
2281,265 SF
288,338 SF
UNIT SUMMARY
DEAL POINTS
• Unmatched Johns Creek location - North Fulton’s most affluent address - with an average household income of $140,000 and average net worth of more than $480,000. St. Andrews is one of only four apartment communities in Johns Creek districted to the new Johns Creek High School, which boasts some of the best SAT and ACT scores in Georgia. Junior High-aged students attend Autrey Mill Middle School, and elementary school-aged children attend Dolvin Elementary. Both Autrey Mill and Dolvin hold a current 10 out of 10 ranking from GreatSchools.org, and are among the most exceptional primary and middle schools in the state of Georgia.
• The strong demographics in this location have allowed current ownership to implement a comprehensive value-add strategy, resulting in average rent increases of more than $230 per unit on the 71 units that have been renovated as of the publishing of this OM (about one third of the property). Saint Andrews has 9-foot ceilings and functional floor plans that do not contain inherent obsolescent features. Continuing the already successful value-add program could easily result in a product that is actually more appealing to residents than some of the newer product in this market.
• The southern portion of Johns Creek (where St. Andrews is located), is only minutes from Perimeter Center, Atlanta’s largest central business district. This strong employment center is home to UPS, Newell Rubbermaid, Arby’s, and many more. Recent noteworthy expansions in this market include Cox Communications’ expansion of their multi-building campus, State Farm’s new campus on Hammond Drive, and Mercedes Benz’s new, 12-acre North American headquarters at Georgia 400 and Abernathy Road. The North Fulton central business district is also minutes away, with major employers including Alcatel-Lucent, Hewlett-Packard, IBM, Nokia, Nortel and Verizon.
• Apartment development in the Johns Creek area is expected to remain low as investment capital seeks urban in-fill projects, and the relatively new Johns Creek jurisdiction is opposed to new multifamily permitting.
• The Property is being offered free and clear, allowing investors to take advantage of the current, favorable lending environment.
08 100 Technology DriveOffice Space100,000 Square Feet Major Tenants: Siemens
07 13560 Morris RoadOffice Space525,504 Square Feet Major Tenants: Phillips Healthcare
The North Fulton central business district (which covers Johns Creek, Alpharetta, Milton and Roswell), is Atlanta’s sixth largest central business district, with more than 430 office buildings and more than 23 million square feet of space.
Of the existing stock of office space, 87 buildings are class A, accounting for more than 12 million SF of the total available square footage.
NORTH FULTON CENTRAL BUSINESS DISTRICTThis office hub tends to skew more toward medical and technology-related tenants. Major employers include: Adecco, ADP, Alcatel-Lucent, AT&T, Comcast, E-Trade, Fiserv, GE, Hewlett-Packard, IBM, IBM-Equifax, Ista, LexisNexis, McKesson, MedAssets, Microsoft, Morgan Stanley, Nokia, Nortel, Phillips, Publix, Radiant, Siemens, Sun Microsystems, Verint Systems, and Verizon.
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02 1145 Sanctuary PkwyOffice Space182,000 Square Feet Major Tenants: McKesson
01 800 North Point PkwyOffice Space171,176 Square Feet Major Tenants: Verint
04 1650 Union Hill RoadOffice Space167,000 Square Feet Major Tenants: E-Trade
03 3925 Brookside PkwyOffice Space106,631 Square Feet Major Tenants: Radiant, NCR
06 2400 Lakeview PkwyOffice Space124,800 Square Feet Major Tenants: Morgan Stanley
05 100 North Point CenterOffice Space128,000 Square Feet Major Tenants: Medical Assets Inc.
10 1 One Verizon PlaceOffice Space376,000 Square Feet Major Tenants: Verizon
09 3655 North Point PkwyOffice Space148,332 Square Feet Major Tenants: Sun Micro Systems, Ista North America
12 5555 Windward PkwyOffice Space175,000 Square Feet Major Tenants: Hewlett-Packard
11 2900 Westside PkwyOffice Space376,351 Square Feet Major Tenants: Fiserv
14 1165 Sanctuary PkwyOffice Space152,000 Square Feet Major Tenants: IBM, Safeway Insurance
13 1000 Alderman DriveOffice Space128,000 Square Feet Major Tenants: Lexis Nexis
16 2500 Northwinds PkwyOffice Space147,711 Square Feet Major Tenants: Adecco
15 1000 Windward ConcourseOffice Space252,301 Square Feet Major Tenants: Traveler’s Insurance
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14 Perimeter Crossing1200 Lake Hearn Drive114,474 Square FeetMajor Tenant: Creative Management Group, First Communities
05 Emory St. Joseph’s Hospital5665 Peachtree Dunwoody RoadOpened: 1880More than 750 physicians and 410 licensed beds
11 Cox6205 Peachtree Dunwoody Rd600,000 Square FeetMajor Tenants: Cox Communications
19 1400 Lake Hearn1400 Lake Hearn185,592 Square FeetMajor Tenant: Cox Communications, Associated Credit Union
15 Terraces115, 400 Perimeter Center918,658 Square FeetMajor Tenant: Hilbert Law Firm, Ventyx, PAMEdge
18 245 Perimeter Center Pkwy.245 Perimeter Center Pkwy.237,047 Square FeetMajor Tenant: Auto Trader
12 Perimeter Mall4400 Ashford Dunwoody Rd1,554,288 Square FeetMajor Tenant: Nordstrom, Von Maur, Macy’s, Dillard’s
08 Glenridge Highlands II5565 Glenridge Connector NE414,400 Square FeetMajor Tenant: Morgan Stanley, Campbell & Brannon, CNA
10 Perimeter Summit1001-3003 Perimeter Summit Blvd.1,400,000 Square FeetMajor Tenants: Sanofi Aventis, Reznick Group, Beecher Carlson, Zurich N. American
20 223 Perimeter Center Pkwy.223 Perimeter Center Pkwy.130,175 Square FeetMajor Tenant: Atlanta Journal Constitution
02 The Palisades5901 A-C Peachtree Dunwoody RD365,000 Square FeetMajor Tenants: New York Life, Grubb & Ellis, Spherion
13 North Park Town Center1000 Abernathy Road NE1,527,720 Square FeetMajor Tenants: ToastMasters International
09 7000 Central Park7000 Central Park413,618 Square FeetMajor Tenants: BPG Properties, Oppenheimer & Co
04 Children’s Healthcare of Atlanta1001 Johnson Ferry Road NEOpened: 1998Teaching hospital with 496 licensed beds
01 Concourse Office ParkConcourse Parkway NE2,103,399 Square FeetMajor Tenants: Rayovac, Allconnect
07 Glenridge Highlands I5555 Glenridge Connector289,879 Square FeetMajor Tenants: Neel, Robinson & Stafford, Letfokk, Rubin, Gleson & Russon
03 Northside Hospital1000 Johnson Ferry Road NEOpened: 1970More than 2,300 physicians and 537 licensed beds
06 RaviniaRavinia Drive1,629,842 Square FeetMajor Tenants: InterContinental Hotels Group, Bass Hotel & Resorts
17 Perimeter Center East64,66 Perimeter Center East221,776 Square FeetMajor Tenant: State Farm
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While many of St. Andrews’s affluent residents work in the nearby North Fulton business district, a large number are also making the short commute to the Perimeter business district - the largest office market in Atlanta. Perimeter contains more than 33 million square feet of office space, 6 million square feet of retail (anchored by Perimeter Mall), and more than 40,000 residents.
16 Glenlake Towers10 Glenlake Parkway Northeast258,593 Square FeetMajor Tenant: Newell Rubbermaid, Greystar
Pill Hill — nicknamed for its cluster of hospitals and doctors’ offices, is located near the intersection of Georgia 400 and Interstate 285, on the Sandy Springs side of Perimeter Center. Pill Hill has become the health-care mecca of Atlanta, with three hospitals, hundreds of physician practices, multiple outpatient centers and support services making it a premier location for medical practices. The area has seen a major transformation over the past 40 years, as Northside has grown from 250 beds to 537 beds, while Saint Joseph’s completed a 64-bed expansion in 2005 to bring it to a total of 410 beds.
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St. Andrews is a short 8.5 miles from the heart of the Perimeter office market. Recent, noteworthy job growth in this submarket includes Cox Communications’ expansion of their multi-building campus, State Farm’s new campus on Hammond Drive, and Mercedes Benz’s to-be-developed, 12-acre North American headquarters at Georgia 400 and Abernathy Road.
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Perimeter is home to multiple retail centers, as well as many office parks that contain high-rise office buildings, including skyscrapers that house the world headquarters of United Parcel Service (UPS), AT&T Mobility, Cox Enterprises, Haverty’s and Newell Rubbermaid. The King and Queen Towers, formally known as Concourse at Landmark Center, are the most recognizable structures due to the artistic structures that top them.
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‘PILL HILL’
ST. ANDREWS
PERIMETER CENTRAL BUSINESS DISTRICT
K2ELLINGTON
Average 2015 Sales Price: $460,000
FOXWORTH Average 2015 Sales Price:
$500,000
FALLS AT AUTREY MILLS Average 2015 Sales Price:
$720,000
MT. PISGAH CHRISTIAN SCHOOL
CVSMARLOW’S TAVERN
RITE AID
AERIAL FACING SOUTHWEST
WORKOUT ANYTIME
JERSEY BOYZ PIZZA
AMERICAN ALE HOUSE
CARVEL ICE CREAM
MONTERREY MEXICAN
KOKO’S SUSHI
Demographics around St. Andrews are outstanding, with an average household income of $140,000, an average net worth of more than $480,000, a median age of 35, and more than 60% of Johns Creek residents with a college degree or higher.
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WORKOUT ANYTIME
JERSEY BOYZ PIZZA
AMERICAN ALE HOUSE
CARVEL ICE CREAM
MONTERREY MEXICAN
KOKO’S SUSHI
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COUNTRY CLUB OF THE SOUTH Average 2015 Sales Price:
$1,100,000
FALLS AT AUTREY MILLS Average 2015 Sales Price:
$720,000
AERIAL FACING SOUTHEAST
Moran & CompanySoutheast
SEAN P. HENRYPhone: 404.390.1140Email: [email protected]
JOEL K. SASSERPhone: 404.390.1141Email: [email protected]
JOHN S. HUCKABYPhone: 404.390.1142Email: [email protected]
INTRODUCTION THE PROPERTY
UNDERWRITING RENTALMARKET
COMPARABLERENTALS
CONFIDENTIALITY & GUIDELINES
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CONTENTS
EXECUTIVESUMMARY
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69143
COMPARABLE SALES
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St. Andrews (“Property”) is a 228-unit, two- and three-story, garden style apartment community located in Johns Creek, Georgia.
Built in 1995, St. Andrews has an unbeatable location in the heart of Johns Creek. As a well-planned city within the metropolitan area of Atlanta, Johns Creek boasts top golf courses, annual festivals, cultural experiences and opportunities for recreational activities. Bringing national recognition to Johns Creek, the renowned Atlanta Athletic Club hosted the 2011 PGA Championship and the 2014 U.S. Amateur Tournament. As the wealthiest city in the state of Georgia, it is no surprise that Johns Creek has a total of six golf facilities (five private, one public) which include Country Club of the South, Rivermont Golf and Country Club, River Pines Golf, St. Ives and The Standard Club, in addition to the Atlanta Athletic Club. Johns Creek’s thriving arts culture features metro Atlanta’s only part-time, fully professional symphony orchestra, the Johns Creek Symphony Orchestra. The group performs several times each year. In addition, annual festivals such as “The Taste of Johns Creek”, featuring more than 40 local restaurants, entertain residents and visitors to the area.
Bordered by 13.5 miles of the Chattahoochee River and named for a tributary that runs through the area, Johns Creek has multiple nearby spots where paddlers can put in or take out their boats, allowing for one of Atlanta’s favorite traditions, “Shootin’ the Hooch”, (floating down the Chattahoochee River). The area also offers prime trout fishing and a number of riverside trails. The Autrey Mill Nature Preserve and Heritage Center includes the four-mile hiking, biking, walking and running-friendly Greenway Path, along GA-141. Johns Creek has future plans to develop and connect other paths to the Greenway, adding several additional miles of trail to the area.
At current market rents of $1.03 PSF or $1,299 aggregate, the owner, as a result of an ongoing, comprehensive unit renovation program, has seen a 24% market rent increase between late September 2014 and late May 2015. By continuing this in-place unit renovation, the new buyer should anticipate returns on the remaining units at an average of $294 per unit. Moran and Company provides the continuation of this value-add strategy in our underwriting, and we would suggest adding full-size washer and dryer sets to each unit. A fully renovated St. Andrews could expect rents of $1,513 or $1.20 PSF - still below some of the newer rent comparables, but in the superior location that southern Johns Creek provides.
LIMITED APARTMENT SUPPLYJohns Creek is one of several, newly-incorporated, north Atlanta cities. While closest geographically to Alpharetta, the largest and oldest of the North Fulton jurisdictions, Johns Creek shares many commonalities with other newly-formed cities located south on Georgia 400 – specifically Dunwoody, Sandy Springs, and Brookhaven. While each of these cities include excellent demographic profiles, strong single family housing prices, and good to excellent schools, they also have limited potential for future apartment development. With single family development rebounding in favor among the capital markets, new apartment deliveries will be limited in these areas.
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EXECUTIVE SUMMARY
UNIT MIX SUMMARY
UNIT COUNT % AVG SF TOTAL SF
1BD/1BA 44 19% 1,038 45,672
2BD / 2BA 125 55% 1,245 155,582
3BD / 2BA 59 26% 1,476 87,084
TOTAL 228 100% 1,265 288,338
SAINT ANDREWS
SITE ADDRESS 10055 Jones Bridge RoadJohns Creek, GA 30022
COUNTY Fulton (North)
SUBMARKET Johns Creek
LAND AREA 36.55 acres
STORIES Two and three story buildings
% LEASED 98.2%
PHYSICAL OCCUPANCY 88.6% (units renovated at turn)
UNIT SUMMARY
APARTMENT UNITS 228
AVERAGE UNIT SIZE (SF) 1,265
TOTAL SIZE (SF) 288,338
PARKING SUMMARY
PARKING505 total (428 open surface, 53 detached garage spaces, 24 accessible spaces)
PARKING PER UNIT 2.2 spaces per unitEXECUTIVESUMMARY
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ST. ANDREWS CURRENT RENTS AND POST VALUE ADD RENTS VERSUS COMPETITIVE SET
Comparable No. of Units SF Average Rent Avg. Rent/SFRegency at Johns Creek Walk 193 1,134 $1,600 $1.41St. Andrews (Full Reno) 228 1,265 $1,513 $1.20Reserve at Johns Creek Walk 210 1,180 $1,485 $1.26The Estates at Johns Creek 403 1,457 $1,395 $0.96Oaks at Johns Creek 264 1,071 $1,364 $1.27Aylesbury Farms 380 1,331 $1,337 $1.00St. Andrews 228 1,265 $1,299 $1.03Chelsea Ridge at Johns Creek 396 1,140 $1,290 $1.13Avonlea on the River 294 1,145 $1,193 $1.04Retreat at Johns Creek 352 1,103 $1,112 $1.01Totals/Avg. less Full Reno Subject 2,720 1,203 $1,366 $1.14
ALL Comparable Rental Survey Summary
Oaks at Johns Creek
Avonlea on the River
Reserve at Johns Creek Walk
Regency at Johns Creek Walk
St. Andrews
St. Andrews (Full Reno)
The Estates at Johns Creek
Retreat at Johns Creek
Aylesbury Farms Chelsea Ridge at Johns
Creek
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
1,000 1,100 1,200 1,300 1,400 1,500
Aver
age
Net
Effe
ctiv
e Re
nt
Average Square Footage
Average Rent
THE CASE FOR CONTINUED VALUE-ADD RENOVATION
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Existing ownership has renovated 71 total units as of the publishing of this OM, about 1/3 of the community. As of today, current market rents are $1,299 or $1.03 PSF (based on the 05/28/15 Rent Roll). St. Andrews continues to garner substantial increases since the implementation of the existing renovation of the units, and the renter profile has not presented any opposition to the increased pricing.
As detailed on the next page, Moran suggests the continuation of the in-place program, while also adding washer/dryer sets to the units at turn. Upon completion of the renovation program, and accounting for an additional $25 to $40 bump for the W/D sets, we would expect rents to be $1,513 or $1.20 PSF.
Existing ownership began a value-add renovation program in 2014, including both upgrades to the units, as well as clubhouse and fitness center upgrades, and a new covered grilling station and sitting area at the pool.
This renovation has averaged about $11,500 per unit, with rent increases of $215 for the one bedroom units, $250 for the two bedroom units, and $315 for the three bedroom units.
Upgrades to Date (71 units) include the following:
KITCHENS include re-faced cabinets (espresso or white finish), granite countertops, glass tile backsplash, stainless steel appliances (including under-mounted stainless steel sinks), plank wood floors, upgraded lighting, ceiling fans, two-tone paint, 2-inch faux wood blinds, USB outlet, and nickel hardware.
BATHROOMS include new 34-inch cabinet fronts (espresso or white finish), new laminate countertops, plank wood floors, framed mirrors (nickel finish), new vanity light fixture, new sinks and sink hardware, curved shower rods, and additional upgraded hardware.
Moran suggests that the buyer continue this in-place renovation, while also considering the addition of washers and dryers to the units, which can fetch an additional $25 to $40 per unit.
The Johns Creek submarket is consistently one of the best performing submarkets in the greater Atlanta metro. Coupling Moran’s projected, organic rent growth of 3.5% over the buyer’s hold period with a continued renovation program (Moran’s model averages the post-renovation rent bumps at $294 per unit), we would expect Saint Andrews’s market rents to grow to an average of $1,751 per unit or $1.38 PSF by the end of the five-year hold projection (presented in our model).
UNRENOVATED LIVING ROOM RENOVATED LIVING ROOM
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WELL-DESIGNED UNITS ARE CURRENTLY UNDERGOING RENOVATION
EXISTING UNRENOVATED UNIT BATHROOM
UPGRADED BATHROOMS INCLUDE 34” CABINETS, VINYL PLANK FLOORING, NEW LAMINATE COUNTERTOPS, FRAMED MIRRORS, & CURVED SHOWER RODS
EXISTING UNRENOVATED UNIT KITCHEN INCLUDES WHITE APPLIANCES, LAMINATE COUNTERTOPS, VINYL FLOORS
RENOVATED KITCHENS INCLUDE STAINLESS STEEL APPLIANCES, GRANITE COUNTERS, NEW CABINET FRONTS, TILE BACKSPLASH, VINYL PLANK FLOORING, AND UPGRADED HARDWARE & LIGHTING
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CLUB HOUSE BY NIGHT
TENNIS COURT
UPDATED CLUBHOUSE LOUNGE AND PROSPECT WAITING AREA
APPEALING UPDATED AMENITIES COMPLEMENT A CONTINUED UNIT RENOVATION PROGRAM
POOL AND NEW, WOOD ARBOR-COVERED GRILL AND SEATING AREA
THE PROPERTY109
THE PROPERTY
THEPROPERTY
RENOVATED CLUBROOM WITH CYBER CAFE
RENOVATED FITNESS CENTER
NEWLY-ADDED POOL AREA GRILL WITH SEATING AREA
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PROPERTY DATA SHEET UNIT MIX - SUMMARY & DETAIL
Saint Andrews Inputs Johns Creek, GA
REVENUE ASSUMPTIONS
RENT ASSUMPTIONS Current
Occupancy Status Monthly Rent Floor Plans Unit Size Beds # Units Occupied Vacant Non-Rev Market In-Place 1 Bed 1 Bath (A1) 1,038 sf 1 BR 31 units 31 units ‐ ‐ $ 1,070 $ 1,039 1 Bed 1 Bath (A1) Renovated 1,038 sf 1 BR 13 units 7 units 6 units ‐ $ 1,325 $ 1,279 2 Bed 2 Bath (B1) 1,237 sf 2 BR 61 units 60 units 1 units ‐ $ 1,187 $ 1,114 2 Bed 2 Bath (B1) Renovated 1,237 sf 2 BR 31 units 22 units 8 units 1 units $ 1,411 $ 1,355 2 Bed 2 Bath (B2) 1,266 sf 2 BR 22 units 22 units ‐ ‐ $ 1,212 $ 1,147 2 Bed 2 Bath (B2) Renovated 1,266 sf 2 BR 11 units 8 units 3 units ‐ $ 1,459 $ 1,351 3 Bed 2 Bath (C1) 1,476 sf 3 BR 43 units 42 units 1 units ‐ $ 1,385 $ 1,333 3 Bed 2 Bath (C1) Renovated 1,476 sf 3 BR 16 units 10 units 6 units ‐ $ 1,703 $ 1,595
Total/Average 1,265 sf 228 units 202 units 25 units 1 units $ 1,299 $ 1,217
Populated from May 28, 2015 Rent Roll
• 9 Ft. Ceilings with Crown Molding
• Fireplaces with Italian Marble Hearths*
• Private Balconies / Patios
• Large Closets
• Garden Tubs
• Microwaves
• Washer and Dryer Connections
• Monitored Alarm Systems Available
• Private Entries
• Private Garages Available
* in select units
UNIT AMENITIES
• Renovated Clubroom with Wi-Fi Cyber Cafe and Business
Center
• Renovated, 24-hour Fitness Center
• Swimming Pool with Sundeck and New Grill / Seating Area
• Additional Picnic and Grilling Areas
• Tennis Courts
• Car Care Center
• Dog Park
• Laundry Facility
• Covered School Bus Area
• Controlled Access / Gated
• Minutes from Northpoint Mall and Verizon Amphitheater
• Exceptional N. Fulton County Schools
COMMON AREA AMENITIES
SITE ADDRESS 10055 Jones Bridge RoadJohns Creek, GA 30022
SUBMARKET Johns Creek/AlpharettaCOUNTY Fulton County (North)LAND AREA 36.55 acresZONING TR Townhouse Residential
DistrictPROPERTY MANAGER The Worthing CompaniesYEAR BUILT 1995PARCEL NUMBER 11-0190-0060-012-9APARTMENT UNITS 228AVERAGE UNIT SIZE (SF) 1,265TOTAL APARTMENT SIZE (SF) 288,338SURFACE PARKING 428 open regular, 24 accessibleDETACHED GARAGES 53 detached garages
UNIT SUMMARYRent Roll as of 5/28/15 Units Market Rent In-Place Rent
Avg. Size Occup. Vacant Non-Rev. Total per unit per sf per unit per sf1 Bedroom 1,038 sf 38 units 6 units ‐ 44 units $ 1,146 $ 1.10 $ 1,083 $ 1.042 Bedroom 1,245 sf 112 units 12 units 1 units 125 units $ 1,271 $ 1.02 $ 1,184 $ 0.953 Bedroom 1,476 sf 52 units 7 units ‐ 59 units $ 1,471 $ 1.00 $ 1,384 $ 0.94 Total / Average 1,265 sf 202 units 25 units 1 units 228 units $ 1,299 $ 1.03 $ 1,217 $ 0.96
RENOVATED UNIT BATHROOM
Click HERE for an Interactive VirtualTour
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THE UNITS St. Andrews is a garden-style, 1995-vintage multifamily community comprised of 25 stand-alone buildings of two-and three-stories, with a stand-alone clubhouse. The Property offers four distinctive floor plans. The units exhibit a large, open environment with 9’ ceilings, a private patio or balcony space and appealing, wooded views.
Community amenities include a recently re-decorated, two-level leasing center with fitness room, resident lounge, swimming pool with newly-added grill and sitting area, tennis courts, a dog park, and private, detached garages. Valet trash service is available to residents, as well as a car care center with hose and vacuum.
WALL FINISHES: Interior finishes are painted board over wood frame studs, textured and painted gypsum board ceilings.
EXISTING, UNRENOVATED KITCHENS Each unit features white appliances, including an electric range/oven, dishwasher, garbage disposal, refrigerator with icemaker and built-in microwave oven. Furthermore, each unit features wood cabinets (light almond finish) with Formica countertops and vinyl flooring in the kitchen area.
EXISTING, UNRENOVATED BATHROOMS Bathrooms have fiberglass tubs with fiberglass shower surrounds, laminate wood cabinetry, laminate countertops with drop-in sink bowls and 5-gallon porcelain toilets.
WINDOW AND DOOR TREATMENT: Exterior entry ways are metal doors with metal frames. Interior doors are six-panel Masonite with wood frames. Doors leading to patios and balconies are 15-lite. Windows are insulated aluminum frame single hung windows with insect screens.
EXISTING, UNRENOVATED FINISHES: Floor finishes consist of carpeting throughout, except for the kitchens and bathrooms, which have vinyl flooring. Crown molding is in all units.
RENOVATED UNITS AND FURTHER UPGRADE POTENTIALTo date, 71 of the units have been renovated as follows:
KITCHENS include re-faced cabinets (espresso or white finish), granite countertops, glass tile backsplash, stainless steel appliances (including under-mounted stainless steel sinks), vinyl plank wood floors, upgraded lighting, ceiling fans, two-tone paint, 2-inch faux wood blinds, USB outlet, and nickel hardware.
BATHROOMS include new 34-inch cabinets (espresso or white finish), new laminate countertops, plank wood floors, framed mirrors (nickel finish), new vanity light fixture, new sinks and sink hardware, curved shower rods, and additional upgraded hardware.
Moran suggests that the buyer continue this in-place renovation, while also considering the addition of washers and dryers, which can fetch an additional $25 to $40 per unit.
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RENOVATED LIVING ROOM
RENOVATED LIVING ROOM/KITCHEN
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RENOVATED DINING ROOM
RENOVATED BATHROOM
RENOVATED BEDROOM
RENOVATED KITCHEN
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AMENITIESBuildings: 25, two- and three-story garden-style apartment buildings, one leasing center/clubhouse building with pool, 13 detached, single-story garage buildings.
Parking: 505 total spaces, 428 of which are open surface spaces and 24 of which are handicap accessible. There are also 53 detached garages in 13 buildings. The parking surface is paved with asphalt and lined with concrete sidewalks, curbing and gutters. There are a total of 2.2 parking spaces per unit.
Ingress/Egress: The property has one point of ingress/egress located on Jones Bridge Road.
Landscaping: Features a variety of grassy yard areas, ground coverings, specimen trees, seasonal flower beds, and natural areas with mature trees.
Pool: One swimming pool, which includes a new, covered gas grill and seating area.
Mail Service: The property features one centrally-located mail kiosk.
Trash Removal: Compactor available to all residents, as well as valet trash removal through a third-party vendor.
Clubhouse: Recently renovated, the clubhouse / leasing office is two stories, with a newly decorated central waiting room and a renovated resident cyber cafe / business center area (with Wi-Fi).
Fitness Center: The fitness center is on the lower level of the clubhouse and has been updated and with new cardio machines, weight machines and free weights in the main room, with a smaller room for individual work-outs, yoga, etc.
Foundation/Footings: Foundation consists of concrete slab-on-grade.
Exterior Walls: The exterior walls are wood frame construction with EIFS and cement board siding, and stone veneer.
Roof System: Roofs are composed of dimensional, architectural grade asphalt shingles.
Stairways/Breezeways: Access stairs for upper floors are composed of steel channel strings and precast concrete treads on steel shelf angles. Steel balustrade guard rails with rounded wood handrails are provided.
Exterior Doors: Exterior entry ways are metal doors with metal frames.
Windows: Insulated, aluminum-frame, single-hung windows with insect screens.
HVAC: All units are equipped with individual electric HVAC units with exterior pad-mounted condensers. Air handlers are mounted in interior closets.
Electrical: All apartment homes feature an adequate supply of electrical service with a good complement of electrical outlets and switches. Copper wiring throughout the complex.
Cable/Internet: All apartment homes are pre-wired for Cable and Internet service. Wi-Fi service is available at the clubhouse and pool.
Plumbing: The plumbing system consists of PVC supply lines with cast iron waste lines.
Fire/Life Safety: Sprinklers throughout all structures on property, and hard wired smoke detectors with battery back-up in all units.
POOL
GARAGE
SIGNAGE
FITNESS CENTER
DOG PARK
CLUBHOUSE
TENNIS COURT
NEW GAS GRILL WITH SITTING AREA
STRUCTURAL DETAIL
MECHANICAL DETAIL
1817
POOL
NEW CYBER CAFE
RENOVATED FITNESS CENTER
MAIL KIOSK
NEW CONFERENCE ROOM
RENOVATED CLUBHOUSE
LAKE
FRONT OF CLUBHOUSE
N
SITE MAP
19 20
FLOOR PLANS FLOOR PLANS
THE STERLINGUNIT TYPE: 1 BR / 1 BA / DENUNIT COUNT: 44UNIT SF: 1,03819% OF UNITS
For illustrative purposes only. Materials, measurements and details might differ from the actual property.
D
For illustrative purposes only. Materials, measurements and details might differ from the actual property.
B
For illustrative purposes only. Materials, measurements and details might differ from the actual property.
A
THE EDINBURGHUNIT TYPE: 2 BR / 2 BAUNIT COUNT: 92UNIT SF: 1,23740% OF UNITS
THE HAMILTONUNIT TYPE: 2 BR / 2 BAUNIT COUNT: 33UNIT SF: 1,26615% OF UNITS
For illustrative purposes only. Materials, measurements and details might differ from the actual property.
C
THE LIVINGSTONUNIT TYPE: 3 BR / 2 BAUNIT COUNT: 59UNIT SF: 1,47626% OF UNITS
UNDERWRITINGINTRODUCTIONFinancial underwriting of St. Andrews is based on 228 units. The Pro Forma assumes stabilized operations for the purposes of projecting a stabilized net operating income and capitalized value.
St. Andrews is being marketed free and clear of any financing, allowing a new owner to obtain the optimal financing based upon its proposed capital structure.
22
% OCCUPIED *accounts for offline units being renovated
88.6
BY THE NUMBERS
St. Andrews
as of 05.28.2015 RR
% LEASED98.2
MARKET RENT PSF $1.03
DISCLAIMERAnalyses are delivered only as an accommodation and neither Seller, Moran & Company, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such analyses. Purchaser must make its own investigation of market conditions, and must independently confirm the accuracy of the analyses provided.
FOOTNOTESFootnotes to the Pro Forma provide additional detail regarding Moran & Company financing modeling assumptions for St. Andrews.
UNDERWRITING
SUMMARY PRO FORMA FOOTNOTESOVERVIEWMoran & Company presents the following Footnotes detailing the financial modeling assumptions supporting the Stabilized Pro Forma Revenue & Operating Expenses for Saint Andrews. The Property is currently 88.6% occupied and 98.2% leased. Market rent is $1,299 per unit per month, or $1.03 PSF as of mid-May 2015. In-place rents are $1,217 per unit per month, or $0.96 PSF.
Existing ownership has renovated 71 total units as of the publishing of this OM, about 1/3 of the community. Moran suggests continuing the current program, while also adding washer/dryer sets to the units at turn. Upon completion of the renovation program, and accounting for an additional $25 to $40 bump for the W/D sets, we would expect rents to reach $1,513 or $1.20 PSF.
Saint Andrews
HISTORICAL CASH FLOW PROJECTED CASH FLOWPro Forma Yr 1
Aug-16 Per Unit Per SF % OPERATING REVENUE Mkt Potential Market Rent $ 3,772,873 $ 16,548 $13.08 100.00% (Loss to Lease) / Gain to Lease ($ 169,779) ($ 745) ($0.59) (4.50%) Gross Potential Revenue $ 3,603,094 $ 15,803 $12.50 95.50%
Vacancy (incl. Renovation Downtime) ($ 226,372) ($ 993) ($0.79) (6.00%) Concessions ($ 54,046) ($ 237) ($0.19) (1.43%) Non‐Revenue Units ($ 24,524) ($ 108) ($0.09) (0.65%) Collection Loss / Bad Debt ($ 16,491) ($ 72) ($0.06) (0.44%) Base Rental Revenue $ 3,281,661 $ 14,393 $11.38 86.98%
Garage / Parking $ 51,500 $ 226 $0.18 1.37% Expense Reimbursements $ 125,344 $ 550 $0.43 3.32% Other Residential Income $ 120,000 $ 526 $0.42 3.18% Other Income $ 296,844 $ 1,302 $1.03 7.87%
EFFECTIVE GROSS REVENUE $ 3,578,505 $ 15,695 $12.41 94.85%
Year 1 Pro Forma OPERATING EXPENSES EGR Repair & Maintenance $ 115,097 $ 505 $0.40 3.22% Security $ 5,003 $ 22 $0.02 0.14% Landscaping / Grounds $ 46,627 $ 205 $0.16 1.30% Personnel $ 331,172 $ 1,453 $1.15 9.25% Marketing / Advertising $ 65,543 $ 287 $0.23 1.83% Administrative Expenses $ 53,376 $ 234 $0.19 1.49% Turnover / Make‐Ready $ 80,914 $ 355 $0.28 2.26% Electricity $ 53,006 $ 232 $0.18 1.48% Fuel (Gas & Oil) $ 7,062 $ 31 $0.02 0.20% Water & Sewer $ 89,654 $ 393 $0.31 2.51% Other Utilities $ 50,177 $ 220 $0.17 1.40% Insurance $ 42,856 $ 188 $0.15 1.20% Real Estate Taxes $ 536,058 $ 2,351 $1.86 14.98% Other Property Taxes ‐ ‐ ‐ Property Management Fee $ 107,355 $ 471 $0.37 3.00%
TOTAL OPERATING EXPENSES $ 1,583,902 $ 6,947 $5.49 44.26%
NET OPERATING INCOME Net Operating Income (bef. Reserves) $ 1,994,602 $ 8,748 $6.92 55.74% Replacement Reserves $ 57,000 $ 250 $0.20 1.59%
NET OPERATING INCOME (AFT. RESERVES) $ 1,937,602 $ 8,498 $6.72 54.15%
METRICS Going‐In Cap Rate 5.10% DSCR (Year 1 Combined Debt Payment) 1.79x
23 24
Year Built 1995
Analysis Start Date August-15
Hold Period 5 Year
Units 228
Total Residential SF 288,338
Average Residential SF 1,265
Occupied Units 201
Occupancy 88.6%
Market Rent (May 2015) $1,299
Market Rent PSF $1.03
In-Place Rent (May 2015) $1,217
In-Place Rent PSF $0.96
Vacancy Factor 6% Year 1, 5.5% Year 2, 5% remaining years
Management Fee 3.00%
Reserves Per Unit $250
Year 1 - Year 5 Market Rent Growth 3.50%
Loss to Lease 4.5% down to 3%
Concessions 1.5% down to 1%
Collection Loss/Bad Debt 0.5% down to 0.35%
Other Income 4.00%
Expenses 3.00%
Real Estate Taxes 2.00%
Pro Forma Year 1 NOI: $1,937,602
See FOOTNOTES for additional detail
Address: 10055 Jones Bridge Road, Johns Creek, GA 30022
ASSUMPTIONSDEAL OVERVIEW
UNIT SUMMARY
RENTS
PRO FORMA ASSUMPTIONS
GROWTH RATES
NET OPERATING INCOME
1,265AVG SF
AVERAGE UNIT SIZE (SF)
1BD/1BA
2BD/2BA
1,038 SF
1,245 SF
1,476 SF3BD/2BA
59
228TOTAL UNITS
UNIT MIX - COUNT
1BD/1BA
2BD/2BA
44
125
3BD/2BA
228TOTAL UNITS
UNIT MIX - % OF TOTAL
1BD/1BA
2BD/2BA
19%
55%
3BD/2BA 26%
PRO FORMA FOOTNOTES - INCOME
Potential Market Rent The stabilized Potential Market Rent (PMR) shown in the Year One Pro Forma is $3,772,873, or $1,379 per unit per month and $1.09 PSF. This amount represents a 7.7% increase over the market rent as of the Trailing 3 annualized income statement. This assumes that a buyer will continue the current, ongoing interior unit renovation program, as well as the addition of washer/dryer sets.
Moran’s pro forma suggests that the remaining units would be renovated during years one and two, with about 77 units renovated each year. This assumption results in an increase from today’s market rents of $1,299 per unit to the Year One market rent of $1,379 per unit (an $80 increase). Upon completion of all renovations by the end of Year 2, a buyer could see market rents increase to more $1,513 per unit, reflecting a rent bump of approximately $215 per unit from today.
Moran assumes additional Market Rent increases of 3.5% throughout the remaining years of our model’s five-year hold period, conservative for a submarket that saw a 13.1% year-over-year rent increase between March 2014 and March 2015 (per MPF).
Saint Andrews’s existing renter profile has not presented any opposition to the increased pricing. The community will also continue to perform well because it sits in what is arguably the highest barrier-to-entry node in all of metro Atlanta, with immediate access to the country club lifestyle afforded by a Johns Creek address, and the ever-growing North Fulton and Perimeter job centers nearby.
25 26
Loss-to-Lease is calculated at 4.5% of Potential Market Rent in proforma Year One, decreasing to 4.25% in Year 2, 4% in Year 3, and 3% in Years 4 and 5. This assumption is in line with historics.
Vacancy Loss (which includes renovation downtime), is assumed at 6% of Potential Market Rent in Year One. Vacancy has been abnormally high since current ownership began the renovation program, taking units offline for renovation. Our vacancy assumption decreases to 5.5% in Year 2, and then 5% for the remaining years of the hold period. Per MPF, the Johns Creek/Alpharetta/Cumming submarket’s occupancy as of March 2015 was 96.1%, a full percentage point higher than the March 2014 number.
Concessions of $54,046 or $237 per unit are assumed for Year One, about 1.43% of PMR. This assumption is in line with historics. Moran’s concession assumption drops to 1.25% in Years 2 and 3, and then down to 1% for Years 4 and 5. Non-Revenue Units. There is one model unit (a two bedroom / two bath - #1601), which accounts for the majority of the non-revenue expense line item. There are also a handful of employee units receiving a discount. The Year One Pro Forma maintains this non-revenue expense assumption of $24,524 or 0.65% of market rent.
Collection Loss / Bad Debt is assumed at $16,491 or $72 per unit in Year One, which is 0.44 percent of PMR and in line with the annualized T-12. Bad debt is assumed at 0.40% of base rental revenue for Year 2 and 0.35% for each subsequent year of the hold period.
Expense Reimbursements. The pro forma assumes 20% tenant reimbursement for electric expense, 100% tenant reimbursement of water & sewer expense, and 50% reimbursement of other utilities (mainly trash expense) in Year One. This equates to an annual reimbursement of $125,344, in line with historics.
Other Residential Income is assumed at $120,000 or $526 per unit, in line with historics.
HISTORICAL CASH FLOW COMPARED TO PRO FORMA Saint Andrews Historical Operating Statements
HISTORICAL CASH FLOW PROJECTED CASH FLOWYear Ending Year Ending T12 Annualized T3 Annualized T1 Annualized Pro Forma Yr 1 T3
Dec-13 Dec-14 Apr-15 Apr-15 Apr-15 Aug-16 Per Unit Per SF Δ OPERATING REVENUE Potential Market Rent $ 3,105,900 $ 3,209,230 $ 3,329,350 $ 3,527,480 $ 3,550,080 $ 3,772,873 $ 16,548 $13.08 6.96% (Loss to Lease) / Gain to Lease ($ 196,237) ($ 94,543) ($ 112,255) ($ 182,992) ($ 160,380) ($ 169,779) ($ 745) ($0.59) (7.22%) Gross Potential Revenue $ 2,909,663 $ 3,114,687 $ 3,217,095 $ 3,344,488 $ 3,389,700 $ 3,603,094 $ 15,803 $12.50 7.73%
Vacancy (incl. Renovation Downtime) ($ 171,479) ($ 211,293) ($ 253,925) ($ 353,599) ($ 428,471) ($ 226,372) ($ 993) ($0.79) (35.98%) Concessions ‐ ($ 38,247) ($ 53,000) ($ 63,067) ($ 54,823) ($ 54,046) ($ 237) ($0.19) (14.30%) Non‐Revenue Units ($ 54,540) ($ 18,900) ($ 22,300) ($ 23,400) ($ 23,400) ($ 24,524) ($ 108) ($0.09) 4.80% Collection Loss / Bad Debt ‐ ($ 18,844) ($ 18,330) ($ 5,748) $ 2,051 ($ 16,491) ($ 72) ($0.06) 186.89% Base Rental Revenue $ 2,683,644 $ 2,827,402 $ 2,869,540 $ 2,898,674 $ 2,885,058 $ 3,281,661 $ 14,393 $11.38 13.21%
Garage / Parking ‐ $ 46,058 $ 50,532 $ 51,561 $ 50,470 $ 51,500 $ 226 $0.18 (0.12%) Expense Reimbursements ‐ $ 88,289 $ 108,621 $ 133,254 $ 129,188 $ 125,344 $ 550 $0.43 (5.94%) Other Residential Income $ 230,329 $ 81,569 $ 96,241 $ 131,380 $ 158,004 $ 120,000 $ 526 $0.42 (8.66%) Other Income $ 230,329 $ 215,916 $ 255,394 $ 316,194 $ 337,662 $ 296,844 $ 1,302 $1.03 (6.12%)
EFFECTIVE GROSS REVENUE $ 2,913,973 $ 3,043,318 $ 3,124,934 $ 3,214,868 $ 3,222,720 $ 3,578,505 $ 15,695 $12.41 11.31%
Year Ending Year Ending Trailing 12 Trailing 12 Trailing 12 Year 1 Pro Forma OPERATING EXPENSES Repair & Maintenance $ 72,307 $ 100,894 $ 111,745 $ 111,745 $ 111,745 $ 115,097 $ 505 $0.40 3.00% Security ‐ $ 4,750 $ 4,905 $ 4,905 $ 4,905 $ 5,003 $ 22 $0.02 2.00% Landscaping / Grounds $ 54,628 $ 42,488 $ 45,713 $ 45,713 $ 45,713 $ 46,627 $ 205 $0.16 2.00% Personnel $ 243,570 $ 298,921 $ 321,379 $ 321,379 $ 321,379 $ 331,172 $ 1,453 $1.15 3.05% Marketing / Advertising $ 32,096 $ 49,928 $ 63,634 $ 63,634 $ 63,634 $ 65,543 $ 287 $0.23 3.00% Administrative Expenses $ 30,840 $ 49,436 $ 52,329 $ 52,329 $ 52,329 $ 53,376 $ 234 $0.19 2.00% Turnover / Make‐Ready $ 40,115 $ 82,009 $ 78,142 $ 78,142 $ 78,142 $ 80,914 $ 355 $0.28 3.55% Electricity $ 50,809 $ 52,884 $ 51,463 $ 51,463 $ 51,463 $ 53,006 $ 232 $0.18 3.00% Fuel (Gas & Oil) $ 11,771 $ 6,425 $ 6,856 $ 6,856 $ 6,856 $ 7,062 $ 31 $0.02 3.00% Water & Sewer $ 78,553 $ 87,744 $ 87,043 $ 87,043 $ 87,043 $ 89,654 $ 393 $0.31 3.00% Other Utilities $ 15,022 $ 36,682 $ 48,716 $ 48,716 $ 48,716 $ 50,177 $ 220 $0.17 3.00% Insurance $ 64,218 $ 45,242 $ 42,016 $ 42,016 $ 42,016 $ 42,856 $ 188 $0.15 2.00% Real Estate Taxes $ 250,369 $ 433,982 $ 441,244 $ 441,244 $ 441,244 $ 536,058 $ 2,351 $1.86 21.49% Other Property Taxes ‐ ‐ $ 4,892 $ 4,892 $ 4,892 ‐ ‐ (100.00%) Property Management Fee $ 87,576 $ 91,247 $ 93,803 $ 93,803 $ 93,803 $ 107,355 $ 471 $0.37 14.45%
TOTAL OPERATING EXPENSES $ 1,031,874 $ 1,382,632 $ 1,453,881 $ 1,453,881 $ 1,453,881 $ 1,583,902 $ 6,947 $5.49 8.94%
NET OPERATING INCOME Net Operating Income (bef. Reserves) $ 1,882,099 $ 1,660,686 $ 1,671,053 $ 1,760,988 $ 1,768,840 $ 1,994,602 $ 8,748 $6.92 13.27% Replacement Reserves $ 57,000 $ 57,000 $ 57,000 $ 57,000 $ 57,000 $ 57,000 $ 250 $0.20 ‐
NET OPERATING INCOME (AFT. RESERVES) $ 1,825,099 $ 1,603,686 $ 1,614,053 $ 1,703,988 $ 1,711,840 $ 1,937,602 $ 8,498 $6.72 13.71%
METRICS Going‐In Cap Rate 4.80% 4.22% 4.25% 4.48% 4.50% 5.10% DSCR (Year 1 Combined Debt Payment) 1.69x 1.48x 1.49x 1.57x 1.58x 1.79x
PRO FORMA FOOTNOTES - EXPENSES
$100
$150
$200
$250
$300
$350
$400
$450
$500
1 2 3 4 5
REPAIRS & MAINTENANCE EXPENSE PER UNIT
Repairs & Maintenance Pro Forma Repairs & Maintenance expense is projected to be $115,097 annually or $505 per unit, a 3 percent increase from the annualized T-3. This amount is higher than the competitive communities because overflow from the ongoing renovation program is increasing R&M costs.
SecurityPro Forma Security expense is projected to be $5,003 annually or $22 per unit, up 2% from the annualized T-3. All of the competitive properties include a separate security expense category, but most have minimal expense. Therefore, we have not created a comparison chart for this line item.
Landscaping Pro Forma Landscaping expense is projected to be $46,627 annually or $205 per unit, up 2% from the annualized T-12 and in line with recent historicals. This assumption is slightly above the expense comparison landscaping average of $124 per unit, as Saint Andrews sits on more than 36 acres of land.
PersonnelPro Forma Personnel expense ($331,172 annually) assumes a 3.05% increase above the T-3 and is detailed on the Payroll Analysis in the table at the top of the next page. Staffing assumes a full-time property manager, full-time assistant property manager, and a full time leasing consultant; as well as a full-time maintenance supervisor, a full-time technician, and a full-time punch/groundskeeper.
This per unit personnel expense assumption of $1,453 is higher than the average personnel expense of the similar properties that we have surveyed (which average $1,231 per unit). However, the benchmark for typical payroll costs in Atlanta for a stabilized property can be anywhere between $1,100 and $1,600 per unit.
27 28
Saint AndrewsPAYROLL PROJECTION
Category# of
EmployeesPosition Pro Forma Salary Bonus
Total Payroll Expense
1 Manager $55,000 $5,000 $60,0001 Assistant Manager $42,000 $1,000 $43,0001 Leasing Consultant $24,000 $24,0003 Total Office Payroll $121,000 $6,000 $127,000
1 Maintenance Supervisor $50,000 $1,000 $51,0001 Maintenance Assistant $44,000 $44,0001 Punch/Groundsperson $29,000 $29,0003 Total Maint. Payroll $123,000 $1,000 $124,000
Office $121,000 24% $29,040Maint. $123,000 24% $29,520Bonus $23,074 24% $5,538Total Payroll Load $267,074 $64,098
TOTAL EMPLOYEES 6
TOTAL PAYROLL $331,172TOTAL PER UNIT $1,453
Admin Bonus Calculation$ per New Lease: $75
$ per Renewal: $75
Renewal Probability: 50%
# Units: 228
Occupancy: 94%
Bonus: $16,074
TOTAL PAYROLL
PAYROLL
MAINT.
PAYROLL LOAD
OFFICE
MarketingPro Forma stabilized Marketing expense is projected to be $65,543 annually or $287 per unit, a 3% increase from the annualized T-3 and within the typical benchmark range for Atlanta. This assumption is basically in line with the average marketing expenses for the surveyed competitive projects (which average $223 per unit).
Marketing is typically a wide-ranging category, and can vary significantly depending on management and specific property needs.
$100
$150
$200
$250
$300
1 2 3 4 5
MARKETING/ADVERTISING EXPENSE PER UNIT
Administrative Pro Forma Administrative expense of $53,376, or $234 per unit, is 2% above the annualized T-3. When compared to the expense comparables, this assumption is in line with the comparable average of $231 per unit. Like the marketing category, admin expenses can be very property-specific.
Administrative expense typically includes: office expenses, telephone, supplies, legal, license/permit fees, LRO costs, tenant screening, and other miscellaneous expenses.
OPERATING EXPENSE DETAILTo fully analyze the pro forma assumptions for Saint Andrews’s expenses, we have collected operating statements from four similar, garden style communities built in the same time period. For various reasons, not all of the expense categories are comparable among each of the competitive properties. For example, properties located in a different water district will have different rates and therefore are not comparable. Due to the fact that these statements are proprietary, we have shown the data anonymously in the charts.
Saint Andrews is represented as the bright green column (number 1) in each expense comparison chart. The thin gray line in the middle of each chart represents the average expense per unit of the competitive properties (sans Saint Andrews).
$25
$45
$65
$85
$105
$125
$145
$165
$185
$205
$225
1 2 3 4 5
LANDSCAPING EXPENSE PER UNIT
$1,000
$1,150
$1,300
$1,450
1 2 3 4 5
PERSONNEL EXPENSE PER UNIT
$50
$100
$150
$200
$250
$300
1 2 3 4 5
ADMINISTRATIVE EXPENSE PER UNIT
Other Utilities & Trash ExpenseOther Utility/Trash Expense assumption of $50,177 annually or $220 per unit assumes a 3% increase from the T-3 historical numbers. This category is primarily comprised of fees for trash compactor expenses. As the Other Utility category varies significantly among the expense comp set, a comparison chart is not meaningful. We have assumed 50% recuperation from residents in this category.
PRO FORMA FOOTNOTES - EXPENSESTurnover/Make-Ready Pro Forma Turnover expense of $80,914, or $355 per unit, is based on the turnover analysis in the following table - assuming 70% retention. Turnover includes charges for painting, cleaning, carpet cleaning, and hardwood or tile flooring repairs.
29 30
Unit Type Paint Clean Shampoo Floor RepairTotal
w/Shampoo Total w/repair Total UnitsNumber Turned 80% Shampoo
20% Repair Total
1X1 (A1) $200 $100 $75 $150 $375 $525 44 31 $9,240 $3,234 $12,4742X2 (B1) $250 $125 $85 $175 $460 $635 92 64 $23,699 $8,179 $31,8782X2 (B2) $250 $125 $95 $200 $470 $670 33 23 $8,686 $3,095 $11,7813X2 (C1) $300 $150 $105 $225 $555 $780 59 41 $18,337 $6,443 $24,780
Total 228 160 80% 20% $80,914Average Annual % Turned: 70% Contract Turn: $80,914
Contract Turn/Unit: $355
TURNOVER COSTSSaint Andrews
ElectricityPro Forma Electricity expense of $53,006 or $232 per unit, is a 3% increase over the annualized T-3, and is in line with historicals. This assumption is also in line with the average per unit expense of $212 per unit among the competitive properties.
The assumption of $355 per unit is higher than the similar properties that we have analyzed (which average $254 per unit). However, these higher turn costs at Saint Andrews are associated with the ongoing unit renovation program and will decrease upon completion of the renovation.
$100
$150
$200
$250
$300
$350
$400
1 2 3 4 5
TURNOVER EXPENSE PER UNIT
$175
$195
$215
$235
$255
$275
1 2 3 4 5
ELECTRICITY EXPENSE PER UNIT
$350
$400
$450
$500
$550
$600
$650
$700
1 2 3 4 5
WATER/SEWER EXPENSE PER UNIT
Water & SewerPro Forma Water & Sewer expense of $89,654, or $393 per unit, increased by 3.5% from historic numbers to reflect recent increases in Fulton County water rates. This is lower than the average of the expense comparables, as these communities are in jurisdictions with higher water rates.
The pro forma assumes 100% resident reimbursement of water and sewer costs.
InsuranceThe Insurance expense line item of $42,856 annually or $188 per unit represents a 2% increase from the annualized T-3. This assumption matches the average of the four surveyed comparable properties.
$90
$110
$130
$150
$170
$190
1 2 3 4 5
INSURANCE EXPENSE PER UNIT
Saint AndrewsREAL ESTATE TAX ASSESSMENT DATA
Property Sale Date Units Per Unit Purchase Price Market Value MV as % of PPRetreat at Johns Creek (f/k/a Camden River) November-14 352 $150,274 $52,896,450 $52,620,700 99%Reserve at Johns Creek Walk March-13 210 $177,619 $37,300,000 $32,591,500 87%North Haven at Johns Creek (f/k/a Century State Bridge) July-14 227 $154,185 $35,000,000 $26,482,900 76%
Property 2014 Tax Bill Units Tax/Unit Avg Rent/Yr Avg Rent/Mo Tax as % Avg. RentReserve at Johns Creek Walk $496,293 210 $2,363 $17,820 $1,485 13.3%Saint Andrews (Subject) $422,255 228 $1,852 $15,588 $1,299 11.9%Retreat at Johns Creek $483,158 352 $1,373 $13,344 $1,112 10.3%North Haven at Johns Creek $357,487 227 $1,575 $16,188 $1,349 9.7%
Tax Analysis of Comparables
Competitive Tax Values on Closed Sales
REAL ESTATE TAXES
Real Estate Taxes Moran has assumed taxes at 100 percent of purchase price, in line with the recent sale of Camden River (now Retreat at Johns Creek). Retreat at Johns Creek’s 2014 assessed market value was 99% of the property’s sale price. Looking at two other recent sales (Reserve at Johns Creek Walk and the former Century State Bridge), these assets were valued at 87% and 76% of purchase price, respectively - indicating successful appeals.
A successful appeal will also likely be based on how much tax is being paid by competitive properties, relative to the rents each property is able to achieve. This method is known as the equalization approach, and can be very valuable in the appeal process.
The Tax Analysis of Comparables section below (using 2014 tax bills), demonstrates that these properties are paying taxes at a rate of 9.7% to 13.3% of current market rent. Therefore, the assumption that St. Andrews would pay 11.9% of market rent (based on the current average market rent of $1,299 per unit), is in line with the comparables.
The new owner could use this back-up as additional fodder for a re-assessment.
PRO FORMA FOOTNOTES - EXPENSES
FOOTNOTES
31 32
Property Management FeeThe Year One pro forma reflects a 3% management fee. This is a 14% increase from the annualized T-3, accounting for the increase in rent from the renovation. 3% management fee typical benchmark for Atlanta.
Reserves The Pro Forma assumes replacement reserves for capital expenditures of $250 per unit, the typical benchmark. Reserves increase 3% annually in each year of the hold period.
The total expense for the suggested value-add program is $2,072,270, which is grown at inflation. There is an additional $200,000 in property-wide improvements budgeted in Year 1 and $200,000 in Year 4. Rent increases of $294 per unit on average represent roughly a 27% return on investment.
NET OPERATING INCOMEBased on the assumptions presented here, Pro Forma effective gross revenue for Saint Andrews is $3,578,505 or $15,695 per unit - an 11.31% increase from the annualized T-3. This assumption incorporates first year increases from the ongoing, value-add renovation program (coupled with Moran’s suggestion of adding washer/dryer sets to the units). The revenue increase also includes organic, Johns Creek area market rent increases.
Total Operating Expenses are $1,583,902, or $6,947 per unit, an 8.94% increase from the annualized T-3 and 44.26% of potential market rent. This increase is due primarily to turnover costs associated with the ongoing value-add renovation, and our assumption that taxes will be assessed at 100 percent of purchase price.
The calculated Net Operating Income, after reserves, is $1,937,602.
UNIT MIX: SUMMARY & DETAILED
Saint Andrews Inputs Johns Creek, GA
REVENUE ASSUMPTIONS
RENT ASSUMPTIONS Current
Occupancy Status Monthly Rent Floor Plans Unit Size Beds # Units Occupied Vacant Non-Rev Market In-Place 1 Bed 1 Bath (A1) 1,038 sf 1 BR 31 units 31 units ‐ ‐ $ 1,070 $ 1,039 1 Bed 1 Bath (A1) Renovated 1,038 sf 1 BR 13 units 7 units 6 units ‐ $ 1,325 $ 1,279 2 Bed 2 Bath (B1) 1,237 sf 2 BR 61 units 60 units 1 units ‐ $ 1,187 $ 1,114 2 Bed 2 Bath (B1) Renovated 1,237 sf 2 BR 31 units 22 units 8 units 1 units $ 1,411 $ 1,355 2 Bed 2 Bath (B2) 1,266 sf 2 BR 22 units 22 units ‐ ‐ $ 1,212 $ 1,147 2 Bed 2 Bath (B2) Renovated 1,266 sf 2 BR 11 units 8 units 3 units ‐ $ 1,459 $ 1,351 3 Bed 2 Bath (C1) 1,476 sf 3 BR 43 units 42 units 1 units ‐ $ 1,385 $ 1,333 3 Bed 2 Bath (C1) Renovated 1,476 sf 3 BR 16 units 10 units 6 units ‐ $ 1,703 $ 1,595
Total/Average 1,265 sf 228 units 202 units 25 units 1 units $ 1,299 $ 1,217
Populated from May 28, 2015 Rent Roll
UNIT SUMMARYRent Roll as of 5/28/15 Units Market Rent In-Place Rent
Avg. Size Occup. Vacant Non-Rev. Total per unit per sf per unit per sf1 Bedroom 1,038 sf 38 units 6 units ‐ 44 units $ 1,146 $ 1.10 $ 1,083 $ 1.042 Bedroom 1,245 sf 112 units 12 units 1 units 125 units $ 1,271 $ 1.02 $ 1,184 $ 0.953 Bedroom 1,476 sf 52 units 7 units ‐ 59 units $ 1,471 $ 1.00 $ 1,384 $ 0.94 Total / Average 1,265 sf 202 units 25 units 1 units 228 units $ 1,299 $ 1.03 $ 1,217 $ 0.96
FULL EXCEL RESIMODEL LINK
For access to the full ResiModel excel pro forma, please click HERE
CASH FLOW Saint Andrews Property Cash Flow Projections
Apr-15 Aug-16 Aug-17 Aug-18 Aug-19 Aug-20 T12 Ann'd Year 1 Year 2 Year 3 Year 4 Year 5
ANNUAL OPERATING CASH FLOW
OPERATING REVENUE Potential Market Rent $ 3,329,350 $ 3,620,086 $ 3,746,789 $ 3,877,927 $ 4,013,655 $ 4,154,132 Renovation Premium $ 152,787 $ 444,759 $ 593,955 $ 614,743 $ 636,259 (Loss to Lease) / Gain to Lease ($ 112,255) ($ 169,779) ($ 178,141) ($ 178,875) ($ 138,852) ($ 143,712) Gross Potential Revenue $ 3,217,095 $ 3,603,094 $ 4,013,408 $ 4,293,006 $ 4,489,546 $ 4,646,680
Vacancy ($ 253,925) ($ 151,080) ($ 149,033) ($ 223,594) ($ 231,420) ($ 239,520) Renovation Downtime ‐ ($ 75,292) ($ 81,502) ‐ ‐ ‐ Concessions ($ 53,000) ($ 54,046) ($ 50,168) ($ 53,663) ($ 44,895) ($ 46,467) Non‐Revenue Units ($ 22,300) ($ 24,524) ($ 27,245) ($ 29,067) ($ 30,085) ($ 31,138) Collection Loss / Bad Debt ($ 18,330) ($ 16,491) ($ 14,822) ($ 13,953) ($ 14,641) ($ 15,153) Base Rental Revenue $ 2,869,540 $ 3,281,661 $ 3,690,638 $ 3,972,729 $ 4,168,505 $ 4,314,402
Expense Reimbursements $ 108,621 $ 125,344 $ 129,104 $ 132,977 $ 136,967 $ 141,076 Other Residential Income $ 146,773 $ 171,500 $ 178,360 $ 185,494 $ 192,914 $ 200,631 Other Income $ 255,394 $ 296,844 $ 307,464 $ 318,472 $ 329,881 $ 341,706
EFFECTIVE GROSS REVENUE $ 3,124,934 $ 3,578,505 $ 3,998,102 $ 4,291,201 $ 4,498,385 $ 4,656,109
OPERATING EXPENSES Repair & Maintenance ($ 111,745) ($ 115,097) ($ 118,550) ($ 122,107) ($ 125,770) ($ 129,543) Security ($ 4,905) ($ 5,003) ($ 5,153) ($ 5,308) ($ 5,467) ($ 5,631) Turnover / Make‐Ready ($ 78,142) ($ 80,914) ($ 83,341) ($ 85,842) ($ 88,417) ($ 91,069) Landscaping / Grounds ($ 45,713) ($ 46,627) ($ 48,026) ($ 49,467) ($ 50,951) ($ 52,480) Personnel ($ 321,379) ($ 331,172) ($ 341,107) ($ 351,340) ($ 361,881) ($ 372,737) Marketing / Advertising ($ 63,634) ($ 65,543) ($ 67,509) ($ 69,534) ($ 71,621) ($ 73,769) Administrative ($ 52,329) ($ 53,376) ($ 54,977) ($ 56,627) ($ 58,325) ($ 60,075) Utilities ($ 194,077) ($ 199,900) ($ 205,897) ($ 212,074) ($ 218,436) ($ 224,989) Insurance ($ 42,016) ($ 42,856) ($ 44,142) ($ 45,466) ($ 46,830) ($ 48,235) Real Estate Taxes ($ 446,136) ($ 536,058) ($ 546,780) ($ 557,715) ($ 568,869) ($ 580,247) Property Management Fee ($ 93,803) ($ 107,355) ($ 119,943) ($ 128,736) ($ 134,952) ($ 139,683)
TOTAL OPERATING EXPENSES ($ 1,453,881) ($ 1,583,902) ($ 1,635,426) ($ 1,684,216) ($ 1,731,519) ($ 1,778,459)
NET OPERATING INCOME Net Operating Income (bef. Reserves) $ 1,671,053 $ 1,994,602 $ 2,362,676 $ 2,606,985 $ 2,766,867 $ 2,877,650 Replacement Reserves ($ 57,000) ($ 57,000) ($ 58,710) ($ 60,471) ($ 62,285) ($ 64,154)
NET OPERATING INCOME (AFT. RESERVES) $ 1,614,053 $ 1,937,602 $ 2,303,966 $ 2,546,514 $ 2,704,581 $ 2,813,496
CAPITAL EXPENDITURES Unit Renovations ($ 1,033,000) ($ 1,039,270) ‐ ‐ ‐ Property‐Wide Capital Exp. ($ 200,000) ‐ ‐ ($ 200,000) ‐
TOTAL CAPITAL EXPENDITURES ($ 1,233,000) ($ 1,039,270) ‐ ($ 200,000) ‐ Paid from Amount Funded Upfront $ 1,233,000 $ 1,039,270 ‐ $ 200,000 ‐
OPERATING CASH FLOW $ 1,937,602 $ 2,303,966 $ 2,546,514 $ 2,704,581 $ 2,813,496
OPERATING PERFORMANCE METRICS
MONTHLY RENT Market Rent (average) $ 1,217 $ 1,379 $ 1,532 $ 1,634 $ 1,692 $ 1,751 Effective Rent (average) $ 1,151 $ 1,291 $ 1,443 $ 1,544 $ 1,620 $ 1,677
YEAR-ON-YEAR GROWTH RATES Market Rent n/a 3.50% 3.50% 3.50% 3.50% Market Rent (incl. Renovation Premium) n/a 11.10% 6.69% 3.50% 3.50% Effective Gross Revenue n/a 11.73% 7.33% 4.83% 3.51% Operating Expense n/a 3.25% 2.98% 2.81% 2.71% Net Operating Income n/a 18.91% 10.53% 6.21% 4.03%
OPERATING METRICS Physical Occupancy (excl. Non‐Rev. units) 92% 93% 94% 94% 94% 94% Economic Occupancy 89% 91% 92% 93% 93% 93% Operating Expense Margin 47% 44% 41% 39% 38% 38% NOI Yield 4.25% 4.75% 5.64% 6.23% 6.60% 6.86% Unleveraged Cash Flow Yield ‐ 4.75% 5.64% 6.23% 6.60% 6.86%
34
OVERVIEWAtlanta’s $300 billion economy continues to improve out of the recession, and the positive momentum is expected to continue. Subsequently, demand for residential housing is also the strongest it has been in years. Units Magazine stated in its September 2014 issue that, “2014 will likely go down as the formal beginning of the shift to a renter-based society.”
Economically, job growth has been accelerating for more than three years, bringing the metro’s unemployment rate in line with the national average. Atlanta has the third-largest concentration of Fortune 500 companies (a total of 15), indicating a very favorable business climate. The end result translates into a nominal GDP that exceeded $307 billion in 2013.
JOB GROWTHAs of January 2015, economists predict that metro Atlanta is poised for its strongest year of job growth since the city hosted the 1996 Olympics. Spurred by the fall in gasoline prices, the return of consumer confidence, and low interest rates, the metro region could add up to 140,000 jobs in 2015, after already adding 60,000 jobs in 2013 and almost 111,000 jobs between February 2014 and February 2015.
Job growth numbers higher than 100,000 have not been seen in Atlanta since 1999 (per the BLS). The city’s largest, single-year job growth in the last 20 years occurred in 1996 - the year Atlanta hosted the Olympics - with gains of 147,000 jobs.
The 2015 forecast of potentially 140,000 new jobs was announced after several major wins for the city, including Daimler AG choosing the Perimeter area as the new home of its Mercedes-Benz USA headquarters (a move that could bring 800 to 1,000 jobs to the region). Likewise, State Farm Insurance Co. plans to employ up to 8,000 on its new Dunwoody campus, where construction is already underway.
SunTrust Park, the new baseball stadium and mixed-use development for the Atlanta Braves, could employ up to 5,000 as construction picks up. The Atlanta Falcons have also started building their new downtown stadium.
Additional major development projects spurring growth include the Avalon development in Alpharetta, and the planned “city within a city” of the former 165-acre General Motors plant in Doraville.
As of February 2015, Atlanta’s total employment base was up 4.6 percent, with both absolute and proportional growth among the nation’s best. All major employment segments, posted gains, led by Professional/Business Services, Trade/Transportation/Utilities, Education/Health Services, and Leisure/Hospitality Services.
RENTAL MARKET
RENTAL MARKET
36
THE ATLANTA RENTAL MARKET: STRONG RENT GROWTH
Strong Rental Fundamentals The Atlanta metro continued to record post-recession high occupancy and a 20-year high annual rent increase in first quarter 2015. The metro’s overall 7.5% rent increase between Q1 2014 and Q1 2015 ranked among the top 10 metro performances nationally. This year-over-year rent increase was the metro’s largest increase since Q1 1995. Sizable rent growth was broad-based geographically, as 25 of the 35 submarkets (defined by MPF) recorded annual rent growth above 5%. The submarkets recording outsized gains (higher than 10%) included Alpharetta/Cumming (13.1%), North Gwinnett County (10.7%), East Marietta (10.3%), Chamblee/Brookhaven (10.1%), and Duluth (10.1%).
Housing Preferences; Improvements in Single Family Market Apartment demand was dramatically altered in the 2000s by unprecedented governmental encouragement and support of home ownership. Post recession, renting has been the more popular alternative, as members of both Gen X and Gen Y, as well as Baby Boomer empty nesters, are choosing to rent instead of owning a home. With the advent of the Millennials entering the workforce, the pool of renters has increased, boosting demand and pushing rents on apartment supply that has not kept pace with historical production and population growth. This trend is a major contributor to the continued strength of the Atlanta rental market.
Simultaneously, Atlanta single family home prices are rising, with a median sales price of $203,000 in January 2015 (per the Atlanta Board or Realtors). This represented a 13.4% increase from January 2014.
At year-ending January 2015, annual single family home sales totaled more than 44,000 homes, up 5.6% from the 2013 number. The Atlanta Business Chronicle described Atlanta as “one of the leaders in the U.S. housing recovery.” Likewise, per a top executive at Iberia Bank Corporation, ‘Local Market Monitor projects a 25.0% increase in home prices in Atlanta over the next three years and is currently under priced 21.0% relative to in-fill.’
Demographic Trends The Millennial and Baby Boomer Generations, with approximately 85.4 and 81.0 million members, respectively, combined contain one-half of the nation’s population. Millennials in the U.S. accounted for more than 35% of the workforce at the end of 2014, and will reach more than 46% by 2020. Both of these demographic generations favor multifamily living as empty nesters show a preference for downsizing to maintenance-free living and younger professionals require more mobility. Unlike prior generations, the Millennials are expected to remain renters for a longer period of time, as they tend to delay marriage and family to build careers. Moreover, more stringent mortgage underwriting standards including requirements for larger cash down payments have limited or delayed home ownership for this generation.
Atlanta is ranked #1 in MarketWatch.com’s Best Cities For New College Grads 2014 listing; while CNN Money lists Atlanta as Number 1 in their 2014 listing of the Top 10 Cities People are Moving To.
5,000,000Number of Births by Generation
4,000,000
4,500,000
2,500,000
3,000,000
3,500,000
1,500,000
2,000,000
, ,
Baby Boomers 4.0M Avg
Generation X3.4M Avg Annual
i h
Millennials3.9M Avg
l i h
Silent Generation2 6M A
Greatest Generation
iGen (TBD)4.1M Avg
0
500,000
1,000,000 Annual Births Births Annual Births2.6M Avg Annual Births
2.9M Avg Annual Births
Annual Births
0
1909
1912
1915
1918
1921
1924
1926
1929
1932
1935
1938
1941
1944
1946
1949
1952
1955
1958
1961
1964
1966
1969
1972
1975
1978
1981
1983
1986
1989
1992
1995
1998
2003
2006
2009
Number of Births
Source: Moran & Company tabulation of US Census Bureau; CDC/National Center for Health Services
$700
$750
$800
$850
$900
$950
$1,000
Aver
age
Effe
ctiv
e Re
nt
Quarter
Metro Atlanta Five Year Rent Growth
31.0%
32.0%
33.0%
34.0%
35.0%
36.0%
37.0%
38.0%
30,000
40,000
50,000
60,000
70,000
80,000
s (Nu
mbe
rs in
Tho
usan
ds)
Owner & Renter Occupied Housing Trend1965-2011
27.0%
28.0%
29.0%
30.0%
0
10,000
20,000
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
# Ho
usin
g Un
it s
Owner Occupied Renter Occupied % Renter
Source: Moran & Company tabulation of US Census Bureau data
Source: MPF Research Q115
Rent Growth Detail Among Various Product TypesAtlanta’s improving apartment fundamentals equate to better overall rent growth, as solid demand in the recent quarters has bolstered occupancy and given Atlanta’s apartment operators the confidence to push rents more aggressively.
The metro’s 7.5% rent increase between March 2014 and March 2015 marked a 20-year high. This is particularly noteworthy, as the metro has historically reported annual rent growth around 3%.
All of Atlanta’s product age niches logged rent growth of better than 5.5%, with the largest increase (9.7%) among properties built in the 1980s.
Permit Issuance GrowsAs of March 2015, work was under way on 48 new apartment communities, totaling 12,544 units. Two thirds of these units (8,300) will be completed by Spring 2016. This projected new supply is slightly higher than the 7,000 units that were completed between March 2014 and March 2015.
Most of the new construction is concentrated inside the Perimeter, with Midtown and Buckhead still leading the construction pipeline. While these numbers feel very robust coming out of the downturn, the new supply is still below pre-recession highs, when most years saw deliveries of 10,000+ units.
In fact, annual permit volumes fell under 10,000 units only once between first quarter 1995 and first quarter 2008. The high point was the year-ending third quarter 2000, when more than 18,000 building permits were issued in Atlanta.
Quarterly Supply Grows, But Still Below Historical Levels During first quarter 2015, the metro received nine new communities, totaling a little more than 2,300 units. This quarterly figure brought annual deliveries to 7,011 units. However, due to the encouraging trend of tearing-down some functionally obsolete communities, about 1,000 units were removed from the total stock.
This net change in inventory expanded the existing apartment base by 1.4%.
Occupancy Growth Commensurate with Rents and SupplyOverall metro occupancy was up 0.8 points annually from the March 2014 number, landing at 93.3% in March 2015. MPF predicts occupancy to increase again by 0.5 points to 93.8% at the end of Q1 2016.
88.0%
89.0%
90.0%
91.0%
92.0%
93.0%
94.0%
95.0%
% O
ccup
ancy
Quarter
Metro Atlanta Occupancy Growth Q1 2010 - Q1 2015
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Metro Atlanta Annual Same Store Rent Change - Q110 - Q115
0
2000
4000
6000
8000
10000
12000
14000
16000
Demand Completions/ Supply
Metro Atlanta Supply & Demand Trends Q12009 - Q12014
ATLANTA RENTAL MARKET OVERVIEW ATLANTA RENTAL MARKET OVERVIEW
35
Source for Charts: MPF Atlanta Q115 Quarterly Report
Source: Moran & Company Tabulation of National US Census Bureau Data
Source: Moran & Company Tabulation of National US Census Bureau Data; CDC
37
The Johns Creek / Alpharetta / Cumming submarket (as defined by MPF Research) had the highest year-over-year rent growth of all 35 submarkets in metro Atlanta - at 13.1%. As a point of comparison, the next best annual rent growth was seen in North Gwinnett County, with 10.7%. Sister submarket Roswell also experienced a healthy 9.4% year-over-year rent increase between March 2014 and March 2015. These numbers surpassed the overall Atlanta metro substantially, which saw 7.5% annual rent growth in the March ‘14 to March ‘15 period. On an aggregate rent basis, the current rents (all class types averaged) for these two primary Northern Atlanta submarkets average $1,132 or $1.05 PSF for Alpharetta/Cumming/Johns Creek, and $972 or $0.88 PSF for Roswell (which has a larger amount of older product).
The newest, stabilized community in Johns Creek is the Lennar-developed Oaks at Johns Creek, which sold in July 2014 to Sentinel for $184,000 per unit. The Oaks is currently achieving average rents of more than $1,365 aggregate (or higher than $1.25 PSF). Lennar is also in the process of completing the 320-unit Roswell City Walk, which will be walkable to downtown Roswell and Canton Street. This project is expected to have rents exceeding $1,400 per unit. Perhaps the biggest success story in the area is North American’s Avalon mixed use development (3 miles north of Saint Andrews). The 250-unit apartment portion of Avalon (Haven at Avalon), is currently achieving rents of $2,250 or $2.26 PSF, the highest suburban rent number in the metro. In fact, many of the newest deliveries in Midtown and Buckhead, some of which are high rise product, are not yet achieving rents at this level. On the planned front, there are three properties in Alpharetta that are expected to move forward in late 2015 or early 2016: Crescent’s Crescent Deerfield within the Deerfield Business Park, JLB’s Deerfield Township on Strickland and Bethany Bend Roads (a similar concept to JLB’s Sandy Springs Gateway project on Roswell Road in north Buckhead), and the proposed, office-centric JV between Lincoln and MetLife, which would include 751,500 SF of office, 75,000 SF of retail and 30,700 SF of restaurant space, 414 units of apartments, a handful of condos and a 200-room hotel along Lakeview Parkway near Haynes Bridge Road and GA 400 It is important to again note that all new development within the North Fulton or Forsyth County node has been limited to the cities of Alpharetta, Roswell, or Cumming. Johns Creek has an extremely high barrier-to-entry policy for new multifamily development. With North Fulton rents higher than ever for the new product, the continuation of the already-in-place value-add renovation of Saint Andrews should be readily accepted by both the investor pool as well as the current renter profile.
JOHNS CREEK/ALPHARETTA/CUMMING AND ROSWELL OCCUPANCY GROWTHANALYSIS OF NORTHERN SUBURBS: (1) THE JOHNS CREEK/ALPHARETTA/CUMMING & (2) THE ROSWELL SUBMARKET
91.0%
92.0%
93.0%
94.0%
95.0%
96.0%
97.0%
98.0%
99.0%
Occupancy Growth - Johns Creek/Alpharetta/Cumming submarket versus Roswell
submarket
Johns Creek / Alpharetta / Cumming Roswell
Both the Johns Creek/Alpharetta/Cumming submarket and the Roswell submarket recorded strong occupancy of higher than 95% at year-ending March 2015, beating the overall Atlanta metro average of 93.3%. Johns Creek/Alpharetta/Cumming, specifically, is currently 96.1% occupied, the second-highest rate among all 35 of the metro submarkets (Kennesaw/Woodstock is first at 96.3%). Sister submarket Roswell is currently sitting at 95.6% occupancy.
As shown in the chart below, Johns Creek/Alpharetta/Cumming has had the most steady trajectory of occupancy over the last five years, never dropping below 94.5% (illustrated by the light blue line). Roswell has climbed up to its current rate of 95.6% from a low of 91.9% in early 2010, during the height of the economic crash.
The growth path of a particular metro area (like Atlanta), carries significant implications for the local real estate market. In Atlanta’s case, it is very clear that the growth path and employment density clearly favors the submarkets in the central Perimeter and northern suburbs. These areas are where the jobs are, and where the live/work/play lifestyle is at its best. More notably, these areas have historically outperformed the market average in terms of total revenue change, based on a rolling three-year average of apartment revenue growth over the past 10 years.
When compared to the metro norm, the Johns Creek/Alpharetta/Cumming submarket led all submarkets by outperforming the metro norm 100% of the time. Similarly-performing submarkets Dunwoody (97%), Vinings (97%), Sandy Springs (90%), Roswell (83%) and Buckhead (80%) had a historically strong track record of outperformance.
Probability of Outperfomance 2005 to 20151. Johns Creek/Alpharetta/Cumming 100%2. Dunwoody (Perimeter) 97%3. Vinings 97%4. Sandy Springs (Perimeter) 90%5. Roswell 83%6. Buckhead 80%7. Northeast Atlanta 77%8. Midtown 53%
SUBMARKETS THAT OUTPERFORMED METRO ATLANTA
$700$750$800$850$900$950
$1,000$1,050$1,100$1,150
Johns Creek/Alpharetta/Cumming & Roswell Submarket Rents versus Metro Atlanta
Atlanta Metro Johns Creek/Alpharetta/Cumming Roswell
0100200300400500600700800900
1,000
Units under Construction - Johns Creek/Alpharetta/Cumming submarket versus Roswell submarket
Johns Creek / Alpharetta / Cumming Roswell
40
NORTHERN SUBURBS - DEVELOPMENT PIPELINE AND MAP
39
UNITS BY STATUS NAME ADDRESS CITY DEVELOPER UNITS TYPE FLOORS START FINISH
Oaks at Johns Creek Walk 1460 Distribution Drive Suwanee Worthing 258 Garden 3 / 4 06/12 08/13
Haven at Avalon 1213 Avalon Boulevard Alpharetta North American 250 Dense Garden 4 01/13 01/15
Waterstone at Big Creek 50 Estuary Trail Alpharetta Davis 270 Garden 3 04/13 01/15
Walton Bluegrass 1625 Oak Farm Drive Alpharetta Walton 300 Garden 3 09/14 11/16
Roswell City Walk 3000 Forrest Walk Roswell Lennar / CNL Growth 320 Garden 3 / 4 12/13 06/15
Crescent Deerfield Deerfield Parkway near Morris Road Alpharetta Crescent 256 Garden 3 / 4 TBD TBD
Deerfield Township Strickland Road and Bethany Bend Alpharetta JLB 560 Dense Garden 3 / 4 TBD TBD
Unnamed Lincoln / MetLife JV Lakeview Parkway near Haynes Bridge Road Alpharetta Lincoln 414 Garden 3 / 4 TBD TBD
RECENT, STABILIZED COMPLETIONS IN THE NORTH ATLANTA SUBURBS
UNDER CONSTRUCTION IN THE NORTH ATLANTA SUBURBS
620
778
PLANNED STARTS IN THE NORTH ATLANTA SUBURBS
1,230ROSWELL CITY WALK HAVEN AT AVALON
OAKS AT JOHNS CREEK
WATERSTONE AT BIG CREEK
WALTON BLUEGRASSST. ANDREWS
COMPARABLE RENTALS
ST. ANDREWS
00
REGENCY AT JOHNS CREEK WALK
01
RETREAT AT JOHNS CREEK
06
RESERVE AT JOHNS CREEK WALK
03
CHELSEA RIDGE AT JOHNS CREEK
04
COMPARABLE RENTALS
AVONLEA ON THE RIVER
05
OAKS AT JOHNS CREEK
02
AYLESBURY FARMS
07
THE ESTATES AT JOHNS CREEK
08
05
42
BerkeleyLake
St Ives Country Club
River PinesGolf Course
AtlantaAthletic Club
ChattahoocheeNat’l Rec
Area
The StandardClub
Lake Windward
WebbBridgePark
Peac
htre
e In
dust
rial B
oule
vard
Satellite BoulevardBreckinridge Boulevard
Davenport Road NW
State Bridge Road
McGinnis Ferry Road
Jones Bridge Road
Old Alabama Road
Buice Road
E Morton Road
Parsons Road
Boles Road
Kimball Bridge Road
Windward Parkway
Sargent Road
Webb Bridge Road
JOHNSCREEK
141
141
400
120
120
SAINT ANDREWS
1
23
47
56
8
AYLESBURY FARMS6115 Abbots Bridge RoadDuluth, GA
OWNER Executive AffiliatesMANAGEMENT Executive AffiliatesSUBMARKET DuluthYEAR BUILT 1996UNIT COUNT 380TOTAL SF 505,680AVG UNIT SF 1,331AVG RENT $1,337AVG RENT PSF $1.00
1996
07
ST. ANDREWS10055 Jones Bridge RoadJohns Creek, GA
OWNER InvescoMANAGEMENT Worthing CompaniesSUBMARKET Johns CreekYEAR BUILT 1995UNIT COUNT 228TOTAL SF 288,338AVG UNIT SF 1,265AVG RENT $1,299AVG RENT PSF $1.03
1997
00
OAKS AT JOHNS CREEK11000 Lakefield PlaceJohns Creek, GA
OWNER Sentinel Real EstateMANAGEMENT Sentinel Real EstateSUBMARKET Johns CreekYEAR BUILT 2013UNIT COUNT 264TOTAL SF 282,664AVG UNIT SF 1,071AVG RENT $1,364AVG RENT PSF $1.27
2013
02
THE ESTATES AT JOHNS CREEK5100 Abbotts Bridge RoadAlpharetta, GA
OWNER Resource Real EstateMANAGEMENT Resource ResidentialSUBMARKET AlpharettaYEAR BUILT 1999UNIT COUNT 403TOTAL SF 587,058AVG UNIT SF 1,457AVG RENT $1,395AVG RENT PSF $0.961999
08
AVONLEA ON THE RIVER6015 State Bridge RoadJohns Creek, GA
OWNER Quintas CorporationMANAGEMENT Quintas CorporationSUBMARKET Johns CreekYEAR BUILT 1997UNIT COUNT 294TOTAL SF 336,499AVG UNIT SF 1,145AVG RENT $1,193AVG RENT PSF $1.04
1997
05
RESERVE AT JOHNS CREEK WALK6215 Johns Creek CommonsJohns Creek, GA
OWNER Mesirow FinancialMANAGEMENT RAMSUBMARKET Johns CreekYEAR BUILT 2006UNIT COUNT 210TOTAL SF 247,786AVG UNIT SF 1,180AVG RENT $1,485AVG RENT PSF $1.262006
03
COMPARABLE RENTALS KEY
REGENCY AT JOHNS CREEK WALK11134 Medlock Bridge RoadJohns Creek, GA
OWNER Atlantic Realty PartnersMANAGEMENT Atlantic Realty PartnersSUBMARKET Johns CreekYEAR BUILT 2012UNIT COUNT 193TOTAL SF 218,843AVG UNIT SF 1,134AVG RENT $1,600AVG RENT PSF $1.41
2012
01
RETREAT AT JOHNS CREEK6005 State Bridge RoadJohns Creek, GA
OWNER McCann Realty PtnrsMANAGEMENT Pegasus ResidentialSUBMARKET Johns CreekYEAR BUILT 2007UNIT COUNT 352TOTAL SF 388,358AVG UNIT SF 1,103AVG RENT $1,112AVG RENT PSF $1.01
2007
06
CHELSEA RIDGE AT JOHNS CREEK9700 Medlock Crossing PkwyJohns Creek, GA
OWNER TitanMANAGEMENT EOSSUBMARKET Johns CreekYEAR BUILT 1994UNIT COUNT 396TOTAL SF 451,520AVG UNIT SF 1,140AVG RENT $1,290AVG RENT PSF $1.131994
04
43 44
PROPERTY INFORMATION
Property Name St. Andrews Regency at Johns Creek Walk Oaks at Johns Creek Reserve at Johns Creek Walk
Address 10055 Jones Bridge Road 11134 Medlock Bridge Road 11000 Lakefield Place 6215 Johns Creek Commons
Owner Invesco Atlantic Realty Partners Sentinel Real Estate Mesirow Financial
Management The Worthing Companies Atlantic Realty Partners Sentinel Real Estate RAM
Units 228 193 264 210
Average Unit SF 1,265 1,134 1,071 1,180
Year Built 1995 2012 2013 2006
Current Occupancy 88.6% 95% 92% 95%
RENTAL FEES & INFORMATION
Application $55 $50 $50 $75
Parking $125 (Det Garage) $0 $125 / Month (Det Garage) $135 (Det Garage), $175 (Att Garage)
Pet Rent $0 $10 / Month $10 / Month $10 / Month
Pet Deposit/Fee (Cat/Dog) $350 NRF $500 ($250 NRF) $400-$550 NRF $500 ($250 NRF)
UNIT AMENITIES
Balcony / Patio YES YES YES YES
Ceiling Fans YES YES YES YES
In-Unit Washer/Dryer Connections YES YES Connections
Kitchen
• Countertops Granite* Granite Granite Granite
• Updated Cabinets YES* YES YES YES
• Microwave YES YES YES YES
• Stainless Steel Appliances YES* YES YES YES
Walk-In Closets YES YES YES YES
Hard Wood or Wood-Style Flooring (LVT) YES* YES YES YES
PROPERTY AMENITIES
Clubhouse YES YES YES YES
Energy Efficient NO YES YES NO
Fireplace in Pool Area NO YES YES NO
Fitness Center YES YES YES YES
Game Room/Theater NO NO NO YES
Grilling Stations YES YES YES YES
Outdoor Patio YES YES YES YES
Designated Pet Area YES YES YES YES
Pool YES YES YES YES
*In Select Units
COMPARABLE RENTALS DETAIL COMPARABLE RENTALS DETAIL
Chelsea Ridge at Johns Creek Avonlea on the River Retreat at Johns Creek Aylesbury Farms The Estates at Johns Creek
9700 Medlock Crossing Pkwy 6015 State Bridge Road 6005 State Bridge Road 6115 Abbots Bridge Road 5100 Abbotts Bridge Road
Titan Quintas Corporation McCann Realty Partners Executive Affiliates Resource Real Estate
EOS Quintas Corporation Pegasus Residential Executive Affiliates Resource Residential
396 294 352 380 403
1,140 1,145 1,103 1,331 1,457
1994 1997 2007 1996 1999
97% 97% 95% 97% 95%
$60 $50 $75 $60-$80 $50
$125 (Det Garage) $110 (Att/Det Garage) $85 (Det Garage), $99 (Att Garage)
$110 (Att/Det Garage) $0
$20-$40 / Month $0 $10 / Month $0 $25 / Month
$300-$400 NRF $300-$400 NRF $250 NRF $350-$500 NRF $350
YES YES YES YES YES
YES YES YES YES YES
Connections Connections YES YES Connections
YES Laminate Quartz* Granite Granite
NO NO YES NO YES
YES NO YES YES YES
YES NO YES* NO YES
YES YES YES YES YES
NO NO YES* YES YES
YES YES YES YES YES
NO NO NO NO NO
NO NO NO NO NO
YES YES YES YES YES
NO YES NO NO YES
YES YES YES YES YES
YES YES YES YES YES
YES YES YES YES YES
YES YES YES YES YES
*In Select Units
45 46
St. Andrews 10055 Jones Bridge Road Johns Creek, GA 30022
Market Johns Creek
Owner Invesco
Management The Worthing Companies
Date Opened 1995
Total Units 228
Total Rentable Sq. Ft. 288,338
Avg. Unit Size 1,265
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF
Average Rent
Average Rent/SF
1BD/1BA 31 1,038 $1,070 $1.04
1BD/1BA (Renovated) 13 1,038 $1,325 $1.28
2BD/2BA 61 1,237 $1,187 $0.95
2BD/2BA (Renovated) 31 1,237 $1,411 $1.15
2BD/2BA 22 1,266 $1,212 $0.95
2BD/2BA (Renovated) 11 1,266 $1,459 $1.11
3BD/2BA 43 1,476 $1,385 $0.95
3BD/2BA (Renovated) 16 1,476 $1,703 $1.15
Totals/Avg. 228 1,265 $1,299 $1.03
AFTER FULL UNIT RENOVATION $1,513 $1.20
Regency at Johns Creek Walk 11134 Medlock Bridge RoadJohns Creek, GA 30097
Market Johns Creek
Owner Atlantic Realty Partners
Management Atlantic Realty Partners
Date Opened 2012
Total Units 193
Total Rentable Sq. Ft. 218,843
Avg. Unit Size 1,134
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF
Average Rent
Average Rent/SF
1BD/1BA 3 719 $1,115 $1.55
1BD/1BA 25 724 $1,225 $1.69
1BD/1BA 34 811 $1,265 $1.56
1BD/1BA 2 832 $1,405 $1.69
1BD/1BA 30 1,229 $1,633 $1.33
2BD/2BA 12 1,216 $1,655 $1.36
2BD/2BA 39 1,239 $1,705 $1.38
2BD/2BA 30 1,407 $1,888 $1.34
3BD/2BA 13 1,465 $2,013 $1.37
3BD/2BA 5 1,662 $2,188 $1.32
Totals/Avg. 193 1,134 $1,600 $1.41
COMPARABLE RENTAL 01COMPARABLE RENTAL 00
47 48
Regency at Johns Creek Walk is a 193-unit community located on Medlock Bridge Road and adjacent to the Standard Golf Club. The community was built in 2012 with modern finishes. The unit interiors feature kitchens with ample cabinetry, stainless steel appliances, granite countertops, oversized tubs, and modern flooring (a combination of hardwood, tile and carpet).
Amenities include a putting green, grilling area with outdoor fireplace, cardio fitness center, business center with conference room, and playground.
Oaks at Johns Creek 11000 Lakefield Place Johns Creek, GA 30097
Market Johns Creek
Owner Sentinel Real Estate
Management Sentinel Real Estate
Date Opened 2013
Total Units 264
Total Rentable Sq. Ft. 282,664
Avg. Unit Size 1,071
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF Net Rent Net Rent/SF
1BR/1BA 65 884 $1,150 $1.30
1BR/1BA 25 956 $1,200 $1.26
2BR/1BA 118 1,114 $1,410 $1.27
2BR/2BA 28 1,186 $1,450 $1.22
2BR/2BA 2 1,288 $1,595 $1.24
3BR/2BA 10 1,266 $1,725 $1.36
3BR/2BA 16 1,338 $1,750 $1.31
Totals/Avg. 264 1,071 $1,364 $1.27
Reserve at Johns Creek Walk 6215 Johns Creek CommonsJohns Creek, GA 30097
Market Johns Creek
Owner Mesirow Financial
Management RAM
Date Opened 2006
Total Units 210
Total Rentable Sq. Ft. 247,786
Avg. Unit Size 1,180
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF
Average Rent
Average Rent/SF
1BR/1BA 15 685 $1,139 $1.66
1BR/1BA 1 745 $1,145 $1.54
1BR/1BA 2 745 $1,164 $1.56
1BR/1BA 35 980 $1,204 $1.23
1BR/1BA 19 1,074 $1,300 $1.21
1BR/1.5BA 3 1,369 $1,119 $0.82
2BR/1BA 16 1,117 $1,411 $1.26
2BR/2BA 76 1,185 $1,496 $1.26
2BR/2BA 3 1,195 $1,526 $1.28
2BR/2.5BA 3 1,885 $1,526 $0.81
3BR/2BA 16 1,322 $1,734 $1.31
3BR/2BA 14 1,792 $2,241 $1.25
3BR/3BA 7 1,864 $2,354 $1.26
Totals/Avg. 210 1,180 $1,485 $1.26
COMPARABLE RENTAL 02 COMPARABLE RENTAL 03
49 50
Oaks at Johns Creek is a 264-unit community located within the Johns Creek Technology Park area, close to the intersection of Medlock Bridge Road and McGinnis Ferry Road. The interior finishes include premium 42” cherry cabinets, stainless steel appliances, washers and dryers, built-in pantries, and vinyl, wood plank-style flooring in the common living areas.
The clubhouse and pool include a pool-side fireplace gathering area, along with an outdoor grilling area accented with wood arbors. Additional amenities include a fitness center, business center, and cyber café and coffee bar.
Reserve at Johns Creek Walk is a 210-unit community, located within the master-planned, live/work/play Johns Creek Walk development. Some of the ground floors include shopping and dining options.
The units have 9’ and 10’ ceilings, upgraded cabinets with varied color schemes, stainless steel appliances with gas ranges, granite countertops, and vinyl wood plank flooring throughout the common living area.
The property has strong curb appeal and multiple, exterior building styles. Amenities include a resort style pool with a cabana grilling area, fitness center, playground, and garages.
Avonlea on the River 6015 State Bridge Road Johns Creek, GA 30097
Market Perimeter
Owner Worthing Companies
Management Worthing Companies
Date Opened 2008
Total Units 267
Total Rentable Sq. Ft. 261,853
Avg. Unit Size 981
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF
Average Rent
Average Rent/SF
1BD/1BA 68 856 $1,001 $1.17
1BD/1BA 42 902 $1,000 $1.11
2BD/2BA 92 1,228 $1,309 $1.07
2BD/2BA 39 1,278 $1,307 $1.02
2BD/2BA 1 1,349 $1,378 $1.02
2BD/2BA 40 1,450 $1,291 $0.89
3BD/2BA 12 1,520 $1,358 $0.89
Totals/Avg. 294 1,145 $1,193 $1.04
COMPARABLE RENTAL 05Chelsea Ridge at Johns Creek 9700 Medlock Crossing ParkwayJohns Creek, GA 30022
Market Johns Creek
Owner Titan
Management EOS
Date Opened 1994
Total Units 396
Total Rentable Sq. Ft. 451,520
Avg. Unit Size 1,140
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF
Average Rent
Average Rent/SF
1BD/1BA 72 752 $982 $1.31
1BD/1BA 96 921 $1,089 $1.18
2BD/2BA 52 1,190 $1,299 $1.09
2BD/2BA 48 1,256 $1,329 $1.06
2BD/2BA 12 1,314 $1,299 $0.99
2BD/2BA 24 1,405 $1,479 $1.05
2BD/2BA 64 1,412 $1,649 $1.17
3BD/2BA 8 1,532 $1,509 $0.98
3BD/2BA 8 1,540 $1,649 $1.07
3BD/2BA 8 1,858 $1,829 $0.98
3BD/3BA 4 1,874 $1,920 $1.02
Totals/Avg. 396 1,140 $1,290 $1.13
COMPARABLE RENTAL 04
51 52
Chelsea Ridge at Johns Creek is a 396-unit community centrally-located at the intersection of Medlock Bridge Road and State Bridge Road in Johns Creek. The property is in very close proximity to Atlanta Athletic Club and St. Ives Country Club, and across State Bridge Road from the new Johns Creek High School. The kitchens were updated in 2011/2012 with granite countertops and stainless steel appliances, as well as tile flooring. Cabinets are original and washer/dryer sets are not included.
The property’s amenity package includes a pool, tennis court, volleyball court, car wash area, and playground.
Avonlea on the River is a 294-unit community located on State Bridge Road in Johns Creek. The unit interiors are traditional and feature white cabinets with a white appliance package and laminate countertops. The apartments have wall-to-wall carpeting.
The amenity package consists of a large pool, fitness center, business center with cyber cafe, two tennis courts, and a car care center.
Aylesbury Farms 6115 Abbotts Bridge Road Duluth, GA 30097
Market Duluth
Owner Executive Affiliates
Management Executive Affiliates
Date Opened 1996
Total Units 380
Total Rentable Sq. Ft. 505,680
Avg. Unit Size 1,331
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF
Average Rent
Average Rent/SF
1BD/1BA 32 760 $959 $1.26
1BD/1BA 26 885 $1,194 $1.35
1BD/1BA 27 930 $979 $1.05
1BD/1BA 10 1,190 $1,214 $1.02
2BD/2BA 73 1,285 $1,219 $0.95
2BD/2BA 71 1,340 $1,332 $0.99
2BD/2BA 12 1,470 $1,469 $1.00
2BD/2BA 12 1,500 $1,489 $0.99
2BD/2BA 9 1,620 $1,454 $0.90
2BD/2BA 77 1,550 $1,584 $1.02
2BD/2BA 19 2,015 $1,704 $0.85
2BD/2BA 12 2,045 $1,774 $0.87
Totals/Avg. 380 1,331 $1,337 $1.00
COMPARABLE RENTAL 07Retreat at Johns Creek 6005 State Bridge Road Johns Creek, GA 30097
Market Johns Creek
Owner McCann Realty Partners
Management Pegasus Residential
Date Opened 2007
Total Units 352
Total Rentable Sq. Ft. 388,358
Avg. Unit Size 1,103
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF
Average Rent
Average Rent/SF
1BD/1BA 36 774 $1,010 $1.30
1BD/1BA 20 900 $935 $1.04
1BD/1BA 12 900 $945 $1.05
1BD/1BA 7 952 $913 $0.96
2BD/1BA 25 984 $1,024 $1.04
2BD/2BA 76 1,082 $1,070 $0.99
2BD/2BA 70 1,097 $1,176 $1.07
2BD/2BA 28 1,107 $1,072 $0.97
2BD/2BA 18 1,388 $1,299 $0.94
3BD/2BA 12 1,360 $1,239 $0.91
3BD/2BA 18 1,426 $1,245 $0.87
3BD/2BA 30 1,448 $1,285 $0.89
Totals/Avg. 352 1,103 $1,112 $1.01
COMPARABLE RENTAL 06
53 54
Retreat at Johns Creek (formerly Camden River) is a 352-unit on State Bridge Road. The new owner is currently updating the exterior finishes with new paint and fixtures. The unit interiors are also being upgraded, a program that includes quartz countertops in kitchens and bathrooms, faux wood flooring in living areas, upgraded speckled carpet in the bedrooms, washers and dryer sets, and new stainless steel appliances. The unit interior renovation program provides a good case study for the program currently being implemented at St. Andrews. Retreat at Johns Creek is currently recognizing premiums of $150-$350 for these upgrades.
The amenity package includes a resort style pool, indoor basketball and racquetball courts, car care center, tennis court, fitness center, and play area.
Aylesbury Farms is a 380-unit community located on Abbots Bridge Road at the intersection of Medlock Bridge Road. The interiors have white cabinets with black appliances, laminate countertops, washers and dryers, and a mixture of faux wood vinyl and carpeted floors throughout.
The amenity package includes a pool with hot tub, fitness center, play area, tennis courts, and walking trails.
ALL UNITS ALL UNITS PSF
ONE BEDROOMS ONE BEDROOMS PSF
TWO BEDROOMSTWO BEDROOMS PSF
THREE BEDROOMS THREE BEDROOMS PSF
$1.1
0
$1.1
5
$1.1
5
$1.1
9
$1.2
3
$1.2
4
$1.2
7
$1.2
9
$1.2
9
$1.4
9
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
$1.50
$0.9
7
$1.0
0
$1.0
2
$1.0
1
$1.0
1
$1.1
0
$1.1
7
$1.2
4
$1.2
6
$1.3
6
$0.80
$0.90
$1.00
$1.10
$1.20
$1.30
$1.40
$0.8
5
$0.8
9
$0.8
9
$1.0
0
$1.0
1
$1.1
7
$1.2
8
$1.3
3
$1.3
6
$0.55$0.65$0.75$0.85$0.95$1.05$1.15$1.25$1.35
$1,1
12
$1,1
93
$1,2
90
$1,2
99
$1,3
37
$1,3
64
$1,3
95
$1,4
85
$1,5
13
$1,6
00
$700$800$900
$1,000$1,100$1,200$1,300$1,400$1,500$1,600$1,700
$971
$1,0
01
$1,0
43
$1,0
56
$1,0
95
$1,1
45
$1,1
64
$1,2
10
$1,3
39
$1,3
70
$700
$800
$900
$1,000
$1,100
$1,200
$1,300
$1,400
$1,1
18
$1,2
71
$1,3
05
$1,3
86
$1,4
20
$1,4
31
$1,4
40
$1,4
54
$1,4
84
$1,7
65
$700
$900
$1,100
$1,300
$1,500
$1,700
$1,2
64
$1,3
58
$1,4
71
$1,5
09
$1,6
99
$1,7
26
$1,7
40
$2,0
43
$2,0
62
$700$900
$1,100$1,300$1,500$1,700$1,900$2,100
$0.9
6
$1.0
0
$1.0
1
$1.0
3
$1.0
4
$1.1
3
$1.2
0
$1.2
6
$1.2
7
$1.4
1
$0.65
$0.75
$0.85
$0.95
$1.05
$1.15
$1.25
$1.35
$1.45
TWO BEDROOMS PSF
COMPARABLE RENTALS: AVERAGE RENTS AND AVERAGE RENTS PSFThe Estates at Johns Creek 5100 Abbotts Bridge Road Alpharetta, GA 30005
Market Alpharetta
Owner Resource Real Estate
Management Resource Residential
Date Opened 1999
Total Units 403
Total Rentable Sq. Ft. 587,058
Avg. Unit Size 1,457
UNIT MIX AND RENTAL RATES
Unit TypeNo. of Units SF
Average Rent
Average Rent/SF
1BR/1BA 26 776 $1,050 $1.35
1BR/1BA 16 995 $1,155 $1.16
1BR/1BA 2 896 $999 $1.11
1BR/1BA 16 931 $1,120 $1.20
2BR/2BA 5 1,118 $1,107 $0.99
2BR/2BA 20 1,400 $1,290 $0.92
2BR/2BA 20 1,496 $1,475 $0.99
2BR/2BA 40 1,329 $1,328 $1.00
2BR/2BA 62 1,297 $1,338 $1.03
2BR/2BA 60 1,497 $1,500 $1.00
3BR/2BA 58 1,652 $1,548 $0.94
3BR/2BA 58 1,903 $1,470 $0.77
4BR/3BA 20 2,059 $1,725 $0.84
Totals/Avg. 403 1,457 $1,395 $0.96
COMPARABLE RENTAL 08
5655
The Estates at Johns Creek (formerly Addison Place) is a 403-unit community close to the intersection of Jones Bridge Road and Abbots Bridge, not far from the popular Webb Bridge Park. The units are undergoing a full renovation with new white cabinetry, granite countertops, oversized under-mount sinks, vinyl faux wood floors, subway tile backsplashes, and stainless steel appliances.
This renovation has produced rent increases of about $300 per unit, and is another good comparable for the continuation of the current renovation program underway at St. Andrews.
The amenity package consists of two resort style pools (one with hot tub), fitness center, business center, playground, and available garages.
Comparable No. of Units SF Average Rent Avg. Rent/SFRegency at Johns Creek Walk 193 1,134 $1,600 $1.41St. Andrews (Full Reno) 228 1,265 $1,513 $1.20Reserve at Johns Creek Walk 210 1,180 $1,485 $1.26The Estates at Johns Creek 403 1,457 $1,395 $0.96Oaks at Johns Creek 264 1,071 $1,364 $1.27Aylesbury Farms 380 1,331 $1,337 $1.00St. Andrews 228 1,265 $1,299 $1.03Chelsea Ridge at Johns Creek 396 1,140 $1,290 $1.13Avonlea on the River 294 1,145 $1,193 $1.04Retreat at Johns Creek 352 1,103 $1,112 $1.01Totals/Avg. less Full Reno Subject 2,720 1,203 $1,366 $1.14
ALL Comparable Rental Survey Summary
Oaks at Johns Creek
Avonlea on the River
Reserve at Johns Creek Walk
Regency at Johns Creek Walk
St. Andrews
St. Andrews (Full Reno)
The Estates at Johns Creek
Retreat at Johns Creek
Aylesbury Farms Chelsea Ridge at Johns
Creek
$1,000
$1,100
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
1,000 1,100 1,200 1,300 1,400 1,500
Aver
age
Net
Effe
ctiv
e Re
nt
Average Square Footage
Average Rent
Comparable No. of Units SF Average Rent Avg. Rent/SFRegency at Johns Creek Walk 94 919 $1,370 $1.49St. Andrews (Full Reno) 44 1,038 $1,339 $1.29Reserve at Johns Creek Walk 75 951 $1,210 $1.27Oaks at Johns Creek 90 904 $1,164 $1.29St. Andrews 44 1,038 $1,145 $1.10The Estates at Johns Creek 60 880 $1,095 $1.24Aylesbury Farms 95 888 $1,056 $1.19Chelsea Ridge at Johns Creek 168 849 $1,043 $1.23Avonlea on the River 110 874 $1,001 $1.15Retreat at Johns Creek 75 844 $971 $1.15
Totals/Avg. less Full Reno Subject 811 905 $1,117 $1.23
1 BD Comparable Rental Survey Summary
St. Andrews (Full Reno)
Aylesbury Farms
Retreat at Johns Creek
Avonlea on the River
Regency at Johns Creek Walk
The Estates at Johns Creek
Chelsea Ridge at Johns Creek
Reserve at Johns Creek Walk
Oaks at Johns Creek St. Andrews
$900
$950
$1,000
$1,050
$1,100
$1,150
$1,200
$1,250
$1,300
$1,350
$1,400
800 850 900 950 1,000 1,050 1,100
Aver
age
Rent
Average Square Footage
1BD Average Rent
PROPERTY RENTAL SURVEY SUMMARY ONE BEDROOM RENTAL SURVEY SUMMARY
57 58
THREE BEDROOM RENTAL SURVEY SUMMARY
Comparable No. of Units SF Average Rent Avg. Rent/SFRegency at Johns Creek Walk 81 1,298 $1,765 $1.36Reserve at Johns Creek Walk 98 1,196 $1,484 $1.24St. Andrews (Full Reno) 125 1,245 $1,454 $1.17Chelsea Ridge at Johns Creek 200 1,310 $1,440 $1.10Aylesbury Farms 285 1,478 $1,431 $0.97Oaks at Johns Creek 148 1,130 $1,420 $1.26The Estates at Johns Creek 207 1,386 $1,386 $1.00Avonlea on the River 172 1,292 $1,305 $1.01St. Andrews 125 1,245 $1,271 $1.02Retreat at Johns Creek 217 1,104 $1,118 $1.01
Totals/Avg. less Full Reno Subject 1,533 1,284 $1,244 $0.97
Comparable Rental Survey Summary
St. Andrews (Full Reno)
Avonlea on the River
Chelsea Ridge at Johns Creek
The Estates at Johns Creek
Aylesbury Farms
Regency at Johns Creek Walk
St. Andrews
Retreat at Johns Creek
Reserve at Johns Creek Walk
Oaks at Johns Creek
$1,050
$1,150
$1,250
$1,350
$1,450
$1,550
$1,650
$1,750
$1,850
1,050 1,150 1,250 1,350 1,450 1,550
Aver
age
Rent
Average Square Footage
2BD Average Rent
TWO BEDROOM RENTAL SURVEY SUMMARY
Comparable No. of Units SF Average Rent Avg. Rent/PSFRegency at Johns Creek Walk 18 1,520 $2,062 $1.36Reserve at Johns Creek Walk 37 1,602 $2,043 $1.28Oaks at Johns Creek 26 1,310 $1,740 $1.33St. Andrews (Full Reno) 59 1,476 $1,726 $1.17Chelsea Ridge at Johns Creek 28 1,676 $1,699 $1.01The Estates at Johns Creek 116 1,778 $1,509 $0.85St. Andrews 59 1,476 $1,471 $1.00Avonlea on the River 12 1,520 $1,358 $0.89Retreat at Johns Creek 60 1,424 $1,264 $0.89Totals/Avg. less Full Reno Subject 356 1,538 $1,643 $1.07
3 BD Comparable Rental Survey Summary
The Estates at Johns Creek
St. Andrews
Reserve at Johns Creek Walk
Retreat at Johns Creek
St. Andrews (Full Reno) Oaks at Johns Creek Chelsea Ridge at Johns Creek
Regency at Johns Creek Walk
Avonlea on the River
$1,200
$1,300
$1,400
$1,500
$1,600
$1,700
$1,800
$1,900
$2,000
$2,100
1,300 1,400 1,500 1,600 1,700 1,800
Aver
age
Rent
Average Square Footage
3BD Average Rent
59 60
DETAILED COMPARABLE SALESST. ANDREWS
00
06
03
05
RETREAT AT JOHNS CREEK
OAKS AT JOHNS CREEK ADDISON PLACE
04
BELMONT AT PARK BRIDGE
07
PRESTON POINTE AT WINDERMERE
02
ASCENT AT WINDWARD
62
COMPARABLE SALES
01
DEERFIELD VILLAGE
DETAILED COMPARABLE SALES
BerkeleyLake
St Ives Country Club
River PinesGolf Course
AtlantaAthletic Club
ChattahoocheeNat’l Rec
Area
The StandardClub
Lake Windward
WebbBridgePark
Peac
htre
e In
dust
rial B
oule
vard
State Bridge Road
McGinnis Ferry Road
Jones Bridge Road
Old Alabama Road
Buice Road
E Morton Road
Parsons Road
Boles Road
Kimball Bridge Road
Windward Parkway
Sargent Road
Webb Bridge Road
JOHNSCREEK
141
141
400
120
120
SAINT ANDREWS
2
5
4
1
3
6
THE ESTATES AT JOHNS CREEKDATE OF SALE Mar-14BUYER NAME Resource CapitalSELLER NAME Connor GroupCITY AlpharettaSUBMARKET AlpharettaYEAR BUILT 1999UNIT COUNT 403TOTAL SF 465,792AVG UNIT SF 1,156SALE PRICE $70,500,000PRICE PER UNIT $173,697PRICE PSF $151.36
06
ST. ANDREWSDATE OF SALE TBDBUYER NAME TBD SELLER NAME InvescoCITY Johns CreekSUBMARKET Johns CreekYEAR BUILT 1995UNIT COUNT 228TOTAL SF 288,338AVG UNIT SF 1,265SALE PRICE TBDPRICE PER UNIT TBDPRICE PSF TBDTBD
00
OAKS @ JOHNS CREEKDATE OF SALE Jul-14BUYER NAME SentinelSELLER NAME LennarCITY Johns CreekSUBMARKET Johns CreekYEAR BUILT 2013UNIT COUNT 264TOTAL SF 282,664AVG UNIT SF 1,071SALE PRICE $48,550,000PRICE PER UNIT $183,902PRICE PSF $171.762014
05
PRESTON POINTE @ WINDERMEREDATE OF SALE Jun-13BUYER NAME MilestoneSELLER NAME CentennialCITY AlpharettaSUBMARKET AlpharettaYEAR BUILT 2002UNIT COUNT 346TOTAL SF 412,896AVG UNIT SF 1,193SALE PRICE $46,000,000PRICE PER UNIT $132,948PRICE PSF $111.41
2013
07
BELMONT @ PARK BRIDGEDATE OF SALE Oct-14BUYER NAME Howard StoneSELLER NAME Connor GroupCITY AlpharettaSUBMARKET AlpharettaYEAR BUILT 1989UNIT COUNT 344TOTAL SF 315,640AVG UNIT SF 918SALE PRICE $41,500,000PRICE PER UNIT $120,640PRICE PSF $131.482014
ASCENT AT WINDWARDDATE OF SALE Dec-14BUYER NAME Mesirow FinancialSELLER NAME AvalonBayCITY AlpharettaSUBMARKET AlpharettaYEAR BUILT 1998UNIT COUNT 328TOTAL SF 352,460AVG UNIT SF 2,075SALE PRICE $53,250,000PRICE PER UNIT $162,348PRICE PSF $151.082014
02
2014
04
RETREAT @ JOHNS CREEKDATE OF SALE Nov-14BUYER NAME McCann Realty SELLER NAME Camden CITY DuluthSUBMARKET DuluthYEAR BUILT 1997UNIT COUNT 352TOTAL SF 388,180AVG UNIT SF 1,103SALE PRICE $52,896,450PRICE PER UNIT $150,274PRICE PSF $136.272014
03
63 64
DEERFIELD VILLAGEDATE OF SALE Mar-15BUYER NAME Strata EquitySELLER NAME Blackstone/LivCorCITY AlpharettaSUBMARKET AlpharettaYEAR BUILT 2001UNIT COUNT 554TOTAL SF 557,926AVG UNIT SF 1,007SALE PRICE $85,000,000PRICE PER UNIT $153,430PRICE PSF $152.352015
01
DETAILED COMPARABLE SALES PROFILESDETAILED COMPARABLE SALES PROFILES
00 01 02 03
Property Name St. Andrews Deerfield Village (f/k/a Orion @ Deerfield Village)
Ascent at Windward (f/k/a Archstone Windward)
Retreat at Johns Creek (f/k/a Camden River)
Address 10055 Jones Bridge Rd. 13085 Morris Rd. 18000 Masters Way 6005 State Bridge Rd.
Submarket Johns Creek Alpharetta Alpharetta Duluth
Year Completed 1995 2001 1999 1997
Unit Count 228 554 328 352
Total SF 288,338 557,926 352,460 388,180
Average Unit SF 1,264 1,007 1,075 1,103
Date of Sale TBD Mar-15 Dec-14 Nov-14
Buyer TBD Strata Equity Mesirow Financial McCann Realty
Seller Invesco Blackstone/LivCor AvalonBay Camden
Sale Price TBD $85,000,000 $53,250,000 $52,896,450
Price Per Unit TBD $153,430 $162,348 $150,274
Price PSF TBD $152.35 $151.08 $136.27
04 05 06 07
Belmont at Park Bridge Oaks at Johns Creek Estates at Johns Creek (f/k/a Addison Place)
Preston Pointe @ Windermere
150 Rockberry Lane 11000 Lakefield Pl. 5100 Abbots Bridge Rd. 3100 Preston Pointe Way
Alpharetta Johns Creek Alpharetta Cumming
1989 2013 1999 2002
344 264 403 346
315,640 282,664 465,792 412,896
918 1,071 1,156 1,193
Oct-14 Jul-14 Mar-14 Jun-13
Howard Stone Sentinel Resource Capital Milestone
Connor Group Lennar Connor Group Centennial
$41,500,000 $48,550,000 $70,500,000 $46,000,000
$120,640 $183,902 $173,697 $132,948
$131.48 $171.76 $151.36 $111.41
6665
68
$200,000$180,000
Sale Price Per Unit
$160,000$140,000$120,000$100,000$80,000
Ascent at Windward $162,348
Belmont at Park Bridge $120,640
Retreat at Johns Creek $150,274
Addison Place $173,697
Preston Pointe at Windermere $132,948
DETAILED COMPARABLE SALES PRICE PER UNIT
Oaks at Johns Creek $183,902
67
Deerfield Village $153,430
CONFIDENTIALITY & GUIDELINES
71 72
CONFIDENTIALITY, TERMS & CONDITIONSThis Property Information Package was prepared by Moran & Company (Agent) on behalf of the Owner. It contains confidential information pertaining to the sale of St. Andrews (the “Property”). The Property is being privately offered and, by accepting this Property Information Package, the party in possession hereof agrees (i) to return it to Owner/Agent immediately upon request and (ii) that this Property Information Package and its contents are of a confidential nature and will be held and treated in strict confidence. No portion of this Property Information Package may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of an officer of Owner/Agent. Principals and real estate brokers are prohibited from disseminating this information without the specific written consent of an officer of Owner/Agent.
This Property Information Package is subject to errors, omissions, changes or withdrawal without notice and does not constitute a recommendation or endorsement as to the value of the Property by Owner/Agent and their sources. Financial forecasts are provided as a reference and are based on assumptions proposed by Owner/Agent and their sources. Prospective investors should make their own forecasts and reach their own conclusion of value. Also, the prospective investor shall not contact directly or indirectly the Owner, Property, and employees of the Owner without approval from the Agent.
Certain portions of this Property Information Package merely summarize or outline Property information and are in no way intended to be complete nor necessarily accurate descriptions of the full agreements involved. All prospective investors are to rely upon their own investigations and due diligence in the formation of their assessment of the condition of the adequacy of the plans, specifications, entitlements, or the entire development plan. All relevant documents are expected to be reviewed independently by any prospective investor.
Neither Owner nor the Agent nor any of their respective officers, advisors, agents, or principals has made or will make any representations or warranties, expressed or implied, as to the accuracy or completeness of the Property Information Package or any of the contents, and no legal commitment or obligation shall arise by reason of the Property Information Package or the contents. Analysis and verification of the information contained in the Property Information Package is solely the responsibility of the prospective investor.
Owner reserves the right to reject any or all expressions of interest or offers to invest in the Property, as well as the right to terminate discussions with any party at any time with or without notice. Owner shall have no legal commitment or obligation to any investor reviewing this Property Information Package or making an offer to invest in the Property unless a written agreement for the investment in the Property has been fully executed, delivered and approved by Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived.
The terms and conditions set forth above apply to this Property Information Package in its entirety.
June 2015
OFFERING GUIDELINESAll requests for information or contact with the Owner, property management, leasing agents, etc., will be coordinated through Moran & Company, and subject to approval of the Owner. In no event shall a prospective purchaser contact, or attempt to contact, any tenant either directly or indirectly without the prior consent of Owner. Such consent may be withheld at Owner’s sole discretion.
A letter of intent to purchase will include the purchase price, earnest money deposit, detailed financial structure of transaction including all sources for equity and lender information if applicable, and all other relevant terms and conditions that may effect the ability of the prospective purchaser to perform with respect to its offer. A prospective purchaser is advised to have secured equity and debt financing, if necessary, prior to submitting a letter of intent.
Submission of the letter of intent to purchase shall evidence prospective purchaser’s completion of purchaser’s market and financial due diligence. Due diligence following the submission of the letter of intent is limited to the verification of the financial data provided and the physical and environmental inspections of the Property.
The prospective purchaser shall demonstrate upon submission of an offer to purchase the Property that it has full discretion, financial resources, and human resources necessary to consummate the transaction. In the event additional approvals may be necessary, complete written details, including dates, shall be included in the letter of intent.
Owner has the right, in its sole discretion, to adjust at any time the terms and conditions of any offer, including, without limitation, adjustments of the highest and best offer for the Property. Owner has the right, in its sole discretion, to decline to complete a sale to any prospective purchaser, even if that prospective purchaser is ready, willing, and able to complete a sale at the highest and best offer. The Property offering is subject to removal from market or change without notice.
The Property is being sold in an “as-is, where-is” condition, without representation or warranty of any kind, expressed or implied, oral or written, concerning the Property or any matter related thereto, including zoning; availability of access or utilities; the presence and location of asbestos, PCB transformers, and other toxic, hazardous, or contaminated substances (“Hazardous Materials”) in, on, or about the Property. Prospective purchasers shall be advised of this fact and shall be allowed to make independent investigations of the Property made by their own experts, at their own expense.
Data contained herein are compiled from sources believed reliable, but are not guaranteed and are current as of this printing. Measurements are approximate and subject to verification.
Moran & Company represents only the Owner relative to this transaction, and no form of dual agency shall be deemed created or implied regarding any prospective purchasers.
73 74
NOTES NOTES
74
ATLANTA | CH ICAGO | DALLAS | DENVER | HOUSTON I IRV INE | PHOENIX I SEATTLE | WASHINGTON, D .C .
Southeast
3414 Peachtree Road NE, Suite 475Atlanta, Georgia
Phone: 404.841.4844
WWW.MORANANDCO.COM
SEAN P. HENRYPhone: 404.390.1140
Email: [email protected]
JOEL K. SASSERPhone: 404.390.1141
Email: [email protected]
JOHN S. HUCKABYPhone: 404.390.1142
Email: [email protected]