Prime Metairie Location

Transcription

1 An Exclusive Investment Opportunity Prime Metairie Location 176 Units 2750 Lake Villa Drive, Suite 201 Metairie, LA, LarrySchedler.com Larry Schedler, CCIM Phone: Licensed in LA, MS, AL Cheryl Short Phone: Licensed in LA, MS, AL Christian Schedler Phone: Licensed in LA, MS La Maison Apartments 1

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3 Table of Contents Overview The Opportunity Investment Highlights Executive Summary Property Description Capital Improvement Summary The Property Floor Plans Site Plan Unit Mix/Current Rents Financials Photos Market Information New Orleans Market Overview La Maison Apartments 3

4 La Maison Apartments The Opportunity Larry G. Schedler & Associates, Inc. are pleased to announce the exclusive listing of La Maison Apartments, a 176 unit garden apartment community located in Metairie, LA, a thriving suburb of New Orleans. Originally constructed in 1966, La Maison features spacious one and two bedroom flat and townhouse floorplans. The stabilized asset is part of a solid sub-market with scarce multi-family development opportunities. Area economic drivers include hospitals, a host of retail, office and medical developments. La Maison is being offered on all cash basis. 1

5 Procedures: There will be a 4 5 week marketing period during which qualified prospects can tour the asset by appointment only. All prospects will be notified via of a specific date for offers to be submitted. Interested parties wishing to make an offer on La Maison Apartments are asked to submit the following: Letter of Intent Indication of assets owned and purchased within the past two years Transaction references Financing plans as well as source of equity for acquisition Letters of intent will be evaluated on the consideration offered, the method of payment and the financial capability to successfully execute a closing. Communications: All communications, inquiries, and requests, including Property tours should be addressed to one of the following: Larry G. Schedler and Associates Inc Lake Villa Drive, Suite 201 Metairie, LA Larry G. Schedler, CCIM office larry@larryschedler.com Christian Schedler office or christian@larryschedler.com Please do not contact the Property directly. Cheryl Short office cheryl@larryschedler.com La Maison Apartments 2

6 Investment Highlights Investment Highlights La Maison is located on the Southside of Interstate 10 between I-10 and West Napoleon Avenue both major east-west corridors. The area is known for its strategic location near retail, office and medical services. Employment Drivers Residents of these communities have a diverse employment base: Lakeside Shopping Center Tulane Hospital Numerous commercial office buildings Metairie is centrally located between Louis Armstrong International Airport and the Central Business District of New Orleans. Metairie/East Jefferson Multi-Family Market The Metairie/East Jefferson Multi-family market consists of 18,600 units. Overall occupancy is 96%+, with virtually no land for additional developments. Over the past six (6) months rental increases have averaged $22/month. 3

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8 Executive Summary Unit Mix - Current Rents: Property: Metro Area: Location: La Maison Apartments 176 Apartment Units New Orleans, LA Metairie Houma Boulevard Metairie, LA Type # of Units Rent SF Rent PSF Monthly 1BR/1BA 1 $ $1.37 $835 1BR/1BA 16 $ $0.93 $11,760 1BR/1BA 53 $ $0.99 $41,605 1BR/1BA 1 $ $1.07 $850 2BR/1.5BA 3 $865 1,016 $0.85 $2,595 2BR/1.5BA 3 $920 1,016 $0.91 $2,760 2BR/1.5BA 10 $895 1,016 $0.88 $8,950 Occupancy: 92% as of February, BR/1.5BA 81 $945 1,092 $0.87 $76,545 2BR/1.5BA 5 $995 1,132 $0.88 $4,975 Price: Please submit offers 2BR/1.5BA 3 $1,020 1,132 $0.90 $3,060 Totals: 176 $ ,030 $0.91 $153,935 5

9 Property Description Amenities: Two Swimming Pools Two Laundry Facilities Gated Off Street Parking Courtyards Grilling Area Balcony/Deck/Patios Pets Allowed Window Coverings Flats & Townhouse Units Age: Constructed in 1966 Property Layout: 16 Three-story buildings One (2) story leasing building with second floor efficiency Zoning: R-3 Multiple Family District Land Area: 2 rectangular shaped municipal squares containing 4.31+/- ACRES 187,948 Square Feet Legal Description: Lots 1-38, Square 49 and Lots 1-38, Square 51 Suburban Villas La Maison Apartments 6

10 Net Rentable Square Feet: 170,030 SF Parking Type: Open / 208 spaces (1.18 per unit) Utilities: Landlord Responsibility / Provider Tenant Responsibility / Provider Water & Sewer / Jefferson Parish Electricity / Entergy Trash Collection / Waste Management Hot Water / Resident Choice Telephone, Cable, Internet / Resident Choice Type of Construction: Ground level reinforced pile concrete slabs Wall to wall carpet over concrete or wood sub-floors in all living areas Brick veneer, painted wood, metal stairs Combination flat, built-up and pitched roofs with composition shingles, replaced in 2005 Exterior doors are either solid core or metal replacement Soffits and fascia painted wood with roof level gutters leading to downspouts HVAC individual electric condenser units mounted on ground and second floor balconies Two Gas fired Boiler systems Battery powered smoke detectors in each unit Aluminum frames, double hung, single-pane windows in aluminum frames 7

11 Laundry Facilities: Two laundry facilities Appliances: Fully equipped all electric large kitchens feature: Frost free refrigerator Full size range/oven with hoods Dishwashers Disposals Interior Finishes: Spacious floor plans Washer/Dryer connections in 165 units Ceiling fans Expansive closet space Pass through serving bar Upgraded wood flooring and carpet Prewired for telecommunications Jack & Jill bath in two bedroom units La Maison Apartments 8

12 Capital Improvement Summary $3,000,000 + Property Improvements HVAC conversion from master system to individual units Hot water boiler and copper line replacement Extensive exterior building renovations including stairs & balconies Roof replacement (select buildings) Parking lot re-surfacing and sealing Installed perimeter fencing and automatic gate system to access property Replaced main sewer line and underground plumbing (select buildings) Plastered swimming pools, replaced fencing, new pool furniture Remodeled office, added security system Consolidated satellite dishes Installed washer / dryer connections (select units) This summary is meant to give a broad overview of capital improvements, specific details available upon request 9

13 The Property La Maison Apartments Houma Boulevard Metairie, LA /- Acres 187,932 Sq. Ft. La Maison Apartments 10

14 Floor Plans La Ville: 1BR/1BA (792 Sq. Ft.) La Belle: 2BR/1.5BA (1016 Sq. Ft.) La Chaumiere: 2BR/1.5BA (1132 Sq. Ft.) La Chalet: 1BR/1BA (796 Sq. Ft.) La Chateau: 2BR/1.5BA (1092 Sq. Ft.) 11

15 Site Plan La Maison Apartments 12

16 Unit Mix/Current Rents Current Rents Unit Mix Type # of Units Rent SF Rent PSF Monthly 1BR/1BA 1 $ $1.37 $835 1BR/1BA 16 $ $0.93 $11,760 1BR/1BA 53 $ $0.99 $41,605 1BR/1BA 1 $ $1.07 $850 2BR/1.5BA 3 $865 1,016 $0.85 $2,595 2BR/1.5BA 3 $920 1,016 $0.91 $2,760 2BR/1.5BA 10 $895 1,016 $0.88 $8,950 2BR/1.5BA 81 $945 1,092 $0.87 $76,545 2BR/1.5BA 5 $995 1,132 $0.88 $4,975 2BR/1.5BA 3 $1,020 1,132 $0.90 $3,060 Totals: 176 $ ,030 $0.91 $153,935 Weighted Average Current Rents 13

17 Historical & Pro Forma Operations Average Gross Potential Rent 2012 ACTUALS $ ACTUALS $ ACTUALS $847 Year 1 Pro Forma $875 NOTES: *Misc Income includes: Electric Billed Rent Per Square Foot Occupancy Occupancy (Economic) INCOME Gross Market Rent GROSS POTENTIAL RENT $ % 78.0% Actual Per Unit % of GPR 1,828,020 10, % 1,828,020 $10, % $ % 88.0% Actual Per Unit % of GPR 1,786,440 10, % 1,786,440 $10, % $ % 90.7% Actual Per Unit % of GPR 1,788,600 10, % 1,788,600 $10, % $ % 93.0% Pro Forma Per Unit % of GPR $1,847,220 10, % 1,847,220 $10, % *Real Estate Taxes: Ad- Valorem Taxes are based on 10% of the property s FMV at a millage rate of The current assessed value is $593,550 (FMV- $5,935,500). Less: Vacancy (220,687) (1,254) % (130,755) (743) -7.32% (136,139) (774) -7.61% (129,305) (735) -7.00% Less: Concessions (45,706) (260) -2.50% (49,248) (280) -2.76% (44,374) (252) -2.48% % Less: Discounts/Front End of Lease (138,425) (787) -7.57% (38,227) (217) -2.14% 6, % % Termination/ Cancellation Fees 1, % 1, % 1, % % MTM Fees % 2, % 5, % % Total Collection Loss (402,850) (2,289) % (214,295) (1,218) % (166,939) (949) -9.33% (129,305) (735) -7.00% NET RENTAL INCOME $1,425,170 $8, % $1,572,145 $8, % 1,621,661 $9, % $1,717,915 $9, % 2.77% Change 10.31% Change 3.15% Change 5.94% Change Plus: Miscellaneous Income* 24, % 35, % 42, % 47, % Plus: Late Fees 20, % 24, % 22, % 1, % Plus: Laundry 2, % 2, % % 1, % Total Other Income 47, % 63, % 65, % 49, % Effective Gross Income $1,472,499 $8, % $1,635,146 $9, % 1,687,094 $9, % $1,767,555 $10, % % Increase EXPENSES Actuals Per Unit % of EGI Actuals Per Unit % of EGI Actuals Per Unit % of EGI Proforma Per Unit % of EGI Real Estate Taxes* 67, % 67, % 66, % 98, % Property Insurance 198,668 1, % 216,131 1, % 245,183 1, % 149, % Utilities 144, % 137, % 140, % 145, % Management Fee 44, % 48, % 51, % 53, % Payroll & Benefits 168, % 193,847 1, % 184,668 1, % 167, % General & Administrative 30, % 28, % 30, % 30, % Repair & Maintenance 266,457 1, % 237,830 1, % 242,672 1, % 132, % Rubbish Removal 12, % 14, % 14, % 12, % Professional/ Advertising/ Misc. Fees 25, % 26, % 21, % 25, % Reserves % % % 44, % TOTAL OPERATING EXPENSES 958,928 $5, % $970,899 $5, % 997,980 $5, % 857,434 $4, % NET OPERATING INCOME $513,571 $2, % $664,247 $3, % 689,114 $3, % $910,121 $5, % La Maison Apartments 14

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20 New Orleans Market Overview Greater New Orleans Economy Brookings Institution: #1 Metro area for overall economic recovery 2012 World Tourism Award for outstanding accomplishments in the travel industry Forbes Magazine: #4 Metro area for overall job growth in the USA Forbes Magazine: Top 15 big cities for jobs in 2012 Brookings Institution: #1 Growing metro area for employment Brookings Institution: Top 20 strongest performing economy in the USA U.S. Census: Fastest growing major U.S. city Travel + Leisure Magazine: America s Favorite City 2012 Overall Conde Nast: Top 10 Cities in the United States by Traveler s Readers Choice Awards Kiplinger: New Orleans as the Best City for Retirees Travel + Leisure: Best U.S. city for shopping based on consumer experience Forbes Magazine: Top 10 Best cities for working mothers Bloomberg Businessweek: Top 15 in Best Cities in America rankings Away.com: One of the Five Most Affordable U.S. Cities for Travelers Group Today: Best Southern Destination in the 2012 Readers choice awards AAA Southern Traveler s Annual Best of the South: Best Large City for a Weekend Getaway for the third consecutive year Long known as a popular tourist destination, New Orleans continues to thrive on its local flair for food, entertainment, history, festivals, Mardi Gras, hosting of major sporting events and conventions. Annual economic benefit to the area is estimated at $5 billion dollars. The public private sector partnership for growth and diversification has also been getting a lot of attention. Much has been written and publicized about the New Orleans Recovery from Hurricane Katrina and the recent recession. New Orleans has earned honors and awards from respected business analysts and organizations; Key to all of these positive factors in New Orleans are; Thriving Oil, Natural Gas production and refining. Texaco, Shell Oil & Exploration Corp, Exxon Mobile Production and Chevron USA are a few of the major corporations with significant presence in the New Orleans area. 17

21 The Port of New Orleans is the world s largest port system and the only deep-water port in the nation close to six Class One railroads. The proximity to major interstate systems makes it key to transporting cargo throughout the United States. Carnival, Royal Caribbean and Norwegian leisure cruise lines all call New Orleans a home port as part of the area s booming cruise ship industry. New Orleans is a leader in the petro chemical industry as well, with production of agricultural products, organic and inorganic chemicals. Development of the New Veterans Affairs Medical Center, VA Hospital and the University Medical Center UMC are currently underway as part of the newly created Biomedical District. This area will span 34 acres in downtown New Orleans with expected completion dates of The VA Hospital will feature 200 beds and serve 40,000 veterans, projected development costs are $995 million. UMC will have 424 beds and serve as a teaching facility, treatment and trauma center. Estimated project costs are $1.2 billion. La Maison Apartments 18

22 2750 Lake Villa Drive, Suite 201 Metairie, LA, LarrySchedler.com Larry Schedler, CCIM Phone: Licensed in LA, MS, AL Cheryl Short Phone: Licensed in LA, MS, AL Christian Schedler Phone: Licensed in LA, MS