tierra buena fourplex - loopnet€¦ · tierra buena - 2744 e tierra buena ln phoenix, az 85032...

Tierra Buena Fourplex

2744 E Tierra Buena LnPhoenix, AZ 85032

OFFERING MEMORANDUM

Tierra Buena FourplexCONTENTS

Exclusively Marketed by:

Laura Good Daniela Rubio Craig CitizenRealtor: Commercial / Multi-Family Specialist Realtor / Commercial / Multi-Family Specialist Realtor / Commercial / Multi-Family Specialist(480) 406-1984 (480) 334-7775 (480) 993-5278License # SA639563000 License # [email protected] [email protected] [email protected]

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.

01 Executive Summary Investment Summary 4 Unit Mix Summary 5 Location Summary 11

02 Property Description Property Features 12 Aerial Map 13

03 Demographics Demographics 14 Demographic Charts 15

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from SJ Fowler Real Estate and itshould not be made available to any other person or entity without the written consent of SJ Fowler Real Estate. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to SJ Fowler RealEstate. This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level ofinterest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. SJ Fowler Real Estate has not made any investigation, and makes no warranty or representation withrespect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, SJ Fowler Real Estate has not verified, and will not verify, any of theinformation contained herein, nor has SJ Fowler Real Estate conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy orcompleteness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costsand expenses of investigating the subject property.

Tierra Buena Fourplex Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT SJ FOWLER REAL ESTATE FOR MORE DETAILS.Copyright © 2019 CREOP, LLC. All Rights Reserved.

Tierra Buena Fourplex Investment Summary | 04

OFFERING SUMMARYADDRESS 2744 E Tierra Buena Ln

Phoenix AZ 85032COUNTY MaricopaMARKET PhoenixSUBMARKET North Phoenix - Paradise ValleyBUILDING SF 3,100LAND SF 12,291NUMBER OF UNITS 4YEAR BUILT 1986APN 214-40-255OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $374,900PRICE PSF $120.94PRICE PER UNIT $93,725

DEMOGRAPHICS 1 MILE 3 MILE 5 MILE2019 Population 22,171 151,079 300,4222019 Median HH Income $42,086 $58,912 $65,7622019 Average HH Income $58,692 $79,459 $92,561

North Phoenix (Paradise Valley) Submarket

Close to Interstate 51

Tenants are month to month

Attention! Here’s your opportunity to buy a four-plex in North Phoenix(Paradise Valley) Submarket. Each unit is a 2 Bedroom, 2 Bath unit at775 sf. Each tenant is on a month to month lease. Washer/DryerHookups. Air Conditioning. 100% Occupied. Tenants pay Electricity andOwner pays water, sewer and trash. Centrally located with lots ofshopping, restaurants nearby and just a few miles from the Interstate 51& Paradise Valley Community College. This property is in the NorthPhoenix (Paradise Valley) Submarket. Drive by today! Do not disturbtenants.

Property Report

Tierra Buena -2744 E Tierra Buena Ln

Phoenix, AZ 85032United States

Presented by:

Laura Good & Daniela RubioS.J. Fowler Real Estate

6360 E Brown Rd, #103Mesa, AZ 85205

Mobile: 480-406-1984 or [email protected] or [email protected]

www.LauraGoodAZ.com

www.RealEstateTools.com © 2010-2015 Real Estate Tools 1

Tierra Buena Fourplex Unit Mix Summary | 05

OverviewTierra Buena -2744 E Tierra Buena LnPhoenix, AZ 85032United States

Laura Good & Daniela Rubio480-406-1984 or 480-334-7775

[email protected] or [email protected]

Purchase InfoSquare Feet (4 Units) 3,100Purchase Price $374,900Initial Cash Invested $382,398

Income Analysis Monthly AnnualNet Operating Income $1,704 $20,442Cash Flow $1,704 $20,442

Financial MetricsCap Rate (Purchase Price) 5.5%Cash on Cash Return (Year 1) 5.3%Internal Rate of Return (Year 10) 7.6%Sale Price (Year 10) $503,834

Attention! Here’s your opportunity to buy a four-plex in North Phoenix (Paradise Valley) Submarket. Each unit is a 2 Bedroom, 2 Bath unit at 775 sf. Each tenant is on a month to month lease. Washer/Dryer Hookups. Air Conditioning. 100% Occupied. Tenants pay Electricity and Owner pays water, sewer and trash. Centrally located with lots of shopping, restaurants nearby and just a few miles from the Interstate 51 & Paradise Valley Community College. This property is in the North Phoenix (Paradise Valley) Submarket. Drive by today! Do not disturb tenants.



Purchase AnalysisTierra Buena -2744 E Tierra Buena LnPhoenix, AZ 85032United States



Purchase InfoPurchase Price $374,900+ Buying Costs $7,498+ Initial Improvements $0= Initial Cash Invested $382,398Square Feet (4 Units) 3,100Cost per Square Foot $121Monthly Rent per Square Foot $0.77Cost per Unit $93,725Average Monthly Rent per Unit $600

Financial Metrics (Year 1)Annual Gross Rent Multiplier 13.0Operating Expense Ratio 22.8%Cap Rate (Purchase Price) 5.5%Cash on Cash Return 5.3%

AssumptionsAppreciation Rate 3.0%Vacancy Rate 8.0%Income Inflation Rate 3.0%Expense Inflation Rate 3.0%LTV for Refinance 70.0%Selling Costs $26,243

Income Monthly AnnualGross Rent $2,400 $28,800Vacancy Loss -$192 -$2,304Operating Income $2,208 $26,496

Expenses (% of Income) Monthly AnnualInsurance (4%) -$98 -$1,173Taxes (4%) -$82 -$981Utilities (15%) -$325 -$3,900Operating Expenses (23%) -$504 -$6,054

Net Performance Monthly AnnualNet Operating Income $1,704 $20,442- Year 1 Improvements -$0 -$0= Cash Flow $1,704 $20,442



Buy and Hold ProjectionTierra Buena -2744 E Tierra Buena LnPhoenix, AZ 85032United States



Income Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Gross Rent $28,800 $29,664 $30,554 $32,415 $37,577 $50,501 $67,869Vacancy Loss -$2,304 -$2,373 -$2,444 -$2,593 -$3,006 -$4,040 -$5,430Operating Income $26,496 $27,291 $28,110 $29,821 $34,571 $46,461 $62,440

Expenses Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Insurance -$1,173 -$1,208 -$1,244 -$1,320 -$1,530 -$2,057 -$2,764Taxes -$981 -$1,010 -$1,041 -$1,104 -$1,280 -$1,720 -$2,312Utilities -$3,900 -$4,017 -$4,138 -$4,389 -$5,089 -$6,839 -$9,191Operating Expenses -$6,054 -$6,236 -$6,423 -$6,814 -$7,899 -$10,616 -$14,267

Income Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Net Operating Income $20,442 $21,055 $21,687 $23,008 $26,672 $35,845 $48,173- Improvements -$0 -$0 -$0 -$0 -$0 -$0 -$0= Cash Flow $20,442 $21,055 $21,687 $23,008 $26,672 $35,845 $48,173Cap Rate (Purchase Price) 5.5% 5.6% 5.8% 6.1% 7.1% 9.6% 12.8%Cap Rate (Market Value) 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3%Cash on Cash Return 5.3% 5.5% 5.7% 6.0% 7.0% 9.4% 12.6%Return on Equity 5.3% 5.3% 5.3% 5.3% 5.3% 5.3% 5.3%

Loan Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Market Value $386,147 $397,731 $409,663 $434,612 $503,834 $677,111 $909,981- Loan Balance -$0 -$0 -$0 -$0 -$0 -$0 -$0= Equity $386,147 $397,731 $409,663 $434,612 $503,834 $677,111 $909,981Potential Cash-Out Refi $270,303 $278,412 $286,764 $304,228 $352,684 $473,978 $636,986

Sale Analysis Year 1 Year 2 Year 3 Year 5 Year 10 Year 20 Year 30Equity $386,147 $397,731 $409,663 $434,612 $503,834 $677,111 $909,981- Selling Costs -$27,030 -$27,841 -$28,676 -$30,423 -$35,268 -$47,398 -$63,699= Proceeds After Sale $359,117 $369,890 $380,987 $404,189 $468,566 $629,713 $846,282+ Cumulative Cash Flow $20,442 $41,497 $63,184 $108,529 $234,345 $549,284 $972,537- Initial Cash Invested -$382,398 -$382,398 -$382,398 -$382,398 -$382,398 -$382,398 -$382,398= Net Profit -$2,839 $28,989 $61,773 $130,320 $320,512 $796,600 $1,436,421Internal Rate of Return -0.7% 3.8% 5.4% 6.7% 7.6% 8.1% 8.2%Return on Investment -1% 8% 16% 34% 84% 208% 376%



GraphsTierra Buena -2744 E Tierra Buena LnPhoenix, AZ 85032United States



25

$2,500

$1,000

$3,500

$2,000

$500

$3,000

$1,500

$4,000

$0155 3020100

Year

Monthly Cash Flow

25

$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000

$1,000,000

$0155 3020100

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Market Value

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8%

6%

4%

2%

0%155 3020100

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Internal Rate of Return (IRR)



PhotosTierra Buena -2744 E Tierra Buena LnPhoenix, AZ 85032United States





Tierra Buena Fourplex Location Summary | 11

Demand for apartments in the North Phoenix Submarkethas consistently outpaced new supply, keeping vacanciestight. Low vacancies have fueled rent growth. Renters areattracted to the submarket’s affordability, proximity to majoremployers, and accessibility via the I- 17 and PiestewaFreeway.

Roughly one-quarter of residents fall into the prime rentingcohort of 20–34-year-olds. About half of households inNorth Phoenix are renters, compared to just 40% in themetro. A few projects are in the construction pipeline,though once completed, they are expected to have aminimal impact on vacancies.

Regional Map

Locator Map

Tierra Buena Fourplex Property Features | 12

PROPERTY FEATURESNUMBER OF UNITS 4BUILDING SF 3,100LAND SF 12,291LAND ACRES 0.282YEAR BUILT 1986# OF PARCELS 1ZONING TYPE M-MBUILDING CLASS CTOPOGRAPHY FlatLOCATION CLASS CNUMBER OF STORIES 1NUMBER OF BUILDINGS 1LOT DIMENSION 29.93 x 157.46 x 94.42 x 21.60 x 21.56

x 146.46NUMBER OF PARKING SPACES 4WASHER/DRYER Hookups

UTILITIESWATER LandlordTRASH LandlordELECTRIC Tenant

CONSTRUCTIONFOUNDATION ConcreteFRAMING WoodEXTERIOR StuccoROOF Built-up

Tierra Buena Fourplex Aerial Map | 13

Tierra Buena Fourplex Demographics | 14

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population 20,206 140,319 273,593

2010 Population 19,583 137,701 271,878

2019 Population 22,171 151,079 300,422

2024 Population 23,857 160,229 319,003

2019 African American 938 5,662 10,445

2019 American Indian 371 2,151 4,175

2019 Asian 455 5,762 12,707

2019 Hispanic 11,692 36,346 63,105

2019 White 14,731 117,164 236,706

2019 Other Race 4,754 14,686 25,259

2019 Multiracial 862 5,400 10,656

2019-2024: Population: Growth Rate 7.40 % 5.90 % 6.05 %

2019 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE

less than $15,000 877 4,852 8,801

$15,000-$24,999 1,186 5,994 10,044

$25,000-$34,999 1,050 5,497 10,016

$35,000-$49,999 1,494 9,511 16,794

$50,000-$74,999 1,555 12,234 22,540

$75,000-$99,999 682 8,335 15,990

$100,000-$149,999 671 9,833 20,843

$150,000-$199,999 195 3,688 8,644

$200,000 or greater 199 2,858 9,757

Median HH Income $42,086 $58,912 $65,762

Average HH Income $58,692 $79,459 $92,561

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Total Housing 7,614 58,320 113,212

2010 Total Households 7,063 57,410 112,098



2019 Average Household Size 2.80 2.39 2.42

2000 Owner Occupied Housing 3,816 37,471 74,903

2000 Renter Occupied Housing 3,310 17,928 32,509



2019 Vacant Housing 1,231 5,236 10,566

2019 Total Housing 9,142 68,038 133,996



2024 Vacant Housing 1,300 5,357 10,869

2024 Total Housing 9,760 71,790 141,706

2019-2024: Households: Growth Rate 6.75 % 5.65 % 5.85 %

Source: esri

Tierra Buena Fourplex Demographic Charts | 15

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Household Income

1 Mile Radius 3 Mile Radius 5 Mile Radius

2019 Population by Race

Tierra Buena Fourplex Demographic Charts | 16

2019 Household Occupancy - 1 Mile Radius

Average Income Median Income

2019 Household Income Average and Median

Tierra Buena Fourplex

Exclusively Marketed by:

Laura Good Daniela Rubio Craig CitizenRealtor: Commercial / Multi-Family Specialist Realtor / Commercial / Multi-Family Specialist Realtor / Commercial / Multi-Family Specialist(480) 406-1984 (480) 334-7775 (480) 993-5278License # SA639563000 License # [email protected] [email protected] [email protected]

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