CALL FOR OFFERS MULTIFAMILY INVESTMENT OPPORTUNITY 152 UNIT APARTMENT COMPLEX

Transcription

1 Commercial Real Estate Services, Worldwide. CALL FOR OFFERS MULTIFAMILY INVESTMENT OPPORTUNITY 152 UNIT APARTMENT COMPLEX Exclusive Offering Cherry Tree Hill Apartments 2050 Old Clinton Road Macon, GA 31211

2 TABLE OF CONTENTS 3. Offering 4. Market 9. Location 11. Investment Highlights 24. Financial Analysis 27. Valuation

3 OFFERING SUMMARY OFFERING Cherry Tree Hill Apartments 2050 Old Clinton Road Macon, GA DEBT PARAMETERS Debt Assumption SALE PRICE To Be Determined By Market CALL FOR OFFERS DATE July 12, 2017 OFFER SUBMISSION Please submit offers directly to NAI Earle Furman in the form of a non-binding letter-of-intent ( LOI ). PROPERTY VISITS Interested parties are required to schedule property tours directly through NAI Earle Furman. Under no circumstances should the property or seller be contacted directly. Please contact one of our Brokers to schedule a tour. Tony Bonitati NAI Earle Furman, LLC tonyb@naief.com James Dasher Coldwell Banker james@jamesdasher.com Kay Hill NAI Earle Furman, LLC khill@naief.com Bern DuPree NAI Earle Furman, LLC bdupree@naief.com Gwinna Cahal NAI Earle Furman, LLC gcahal@naief.com 3 Offering

4 4 Market MACON, GEORGIA

5 MACON, GEORGIA Macon lies near the geographic center of the state, approximately 85 miles (137 km) south of Atlanta, hence the city s nickname the Heart of Georgia. Cherry Tree Hill is located in Bibb County in the city of Macon. Bibb County is located in the Macon Metropolitan Statistical Area (MSA). The MSA is comprised of Bibb, Monroe, Jones, Crawford, and Twiggs Counties. The city has several institutions of higher education, as well as numerous museums and tourism sites. Macon is considered the center for transportation, communication, medical facilities, retail trade, and industry for Central Georgia. The Macon economy is also closely tied to the Robins Air Force Base in neighboring Houston County; the state s largest industrial complex employing more than 25,000 civilian, contractor, and military members. 5 Market

6 75 Miles CHERRY TREE HILL 150 Miles 6 Market

7 TOP EMPLOYERS - MACON /BIBB COUNTY The Boeing Corporation Mercer University Medical Center, Navicent Health 7 Market

8 TOP EMPLOYERS - BIBB COUNTY Company Product/Service Number of Employees Medical Center of Central Georgia Hospital 6,200 GEICO Insurance 5,000 Bibb County Board of Education Public Education 3,700 Coliseum Health System Hospital 1,400 City of Macon Government 1,142 Mercer University Private Education 900 Bibb County County Government 780 YKK (USA) Zippers & Vinyl Windows Mfg. 750 Wal-Mart Super Stores Retail 740 United States Postal Service Postal Service 600 Georgia Farm Bureau Insurance 525 Graphic Packaging Corporation Coated & Container Board 500 The Boeing Company Components Manufacturing 486 IKON Office Solutions Sales, Service & Finance Market

9 9 Location CHERRY TREE HILL

10 AERIAL PHOTO OLD CLINTON ROAD 10 Location

11 AREA MAP Site VPD: 23,600 Gray Hwy VPD: 25,430 Northeast High School Jones Elementary School Downtown 3.1 miles Appling Middle School Shurling Dr. 11 Location

12 12 Investment Highlights CHERRY TREE HILL

13 PROPERTY SPECS SITE ADDRESS Cherry Tree Hill Apartments 2050 Old Clinton Road Macon, GA LOCATION Located just minutes northeast of downtown Macon, Cherry Tree Hill has excellent accessibility to two interstates, a variety of retail, and the Macon CBD. Nearby Gray Highway, one of Macon s major arteries, provides residents with a direct connection to downtown Macon, Interstate 16 / Interstate 75, and numerous retail options including a Wal-Mart Supercenter, all under three miles from the property. Residents enjoy superior regional connectivity via Interstates 16 and 75. Interstate 75 offers a direct commute 75 miles north to Atlanta, and Interstate 16 connects residents to Savannah and its prolific port, 150 miles to the southeast. SITE SIZE & DENSITY Cherry Tree Hill Apartments comprises a acre site developed with 152 apartment units. YEAR BUILT 1983 PARKING (SOURCE: COSTAR) Parking is provided via 300 free surface spaces (2.0 per unit). PROPERTY HIGHLIGHTS Built in 1983, Cherry Tree Hill benefits from durable construction featuring brick exteriors with wood accents, pitched roofs, and exterior hallways. The asset s well-maintained condition combined with its mature landscaping and enduring architecture provides attractive curb appeal to prospective tenants. The property has a full swim/tennis amenity package with a stand alone clubhouse/leasing office, tennis court,swimming pool, and laundry facility. 13 Investment Highlights

14 UNIT INFORMATION KITCHENS Three one-bedroom and eight two-bedroom fire/water damaged units have been renovated with white cabinets, faux-granite laminate countertops, and new carpet and vinyl. A new owner could institute a low-cost renovation program and push rents at Cherry Tree Hill. We estimate a $3,500 renovation budget would produce up to $100 per month rental increase producing a blended ROI of 30%. Other amenities include: Dishwasher Stove Garbage disposal Refrigerator Large pantries Breakfast bar Oversized closets Central heat and air Reserved parking Playground Swimming pool and tennis court Camera security system UNIT MIX Unit Type Units Avg SF Rent/Unit Rent/SF 1 Bed / 1 Bath $451 $ Bed / 1 Bath $551 $0.65 Totals/Average $509 $0.69 UTILITIES Utility Provider Paid By Water / Sewer Bibb County Resident Electricity GA Power Resident Cable Winstream Resident 14 Investment Highlights

15 VALUE ADD POTENTIAL - INTERIOR UNITS UPGRADE INTERIOR UNIT UPGRADES Achieve the greatest return on investment by continuing the interior unit upgrades already in process. Proven Rental Premiums with: *New Appliances $1,000 *New Flooring $1,000 *New Fixtures & Hardware $1,000 *Countertops $ 500 Total $3,500 *Estimates ROI Full Upgrade: $3,500 30% Rent Premium Annual: $1,200 RENT PREMIUM $75 Per unit / 1 Bedroom potential rent premium $100 Per unit / 2 Bedrooms potential rent premium 15 Investment Highlights

16 VALUE ADD POTENTIAL - INTERIOR UNITS UPGRADE $78,000 Gross Potential Rent Growth $77,000 $76,000 $75,000 $74,000 $73,000 $72,000 $71,000 January February March April May June July August September October November December $700 $600 $75 per month increase with $3,500 Renovation Cost ROI of 26% $100 per month increase with $3,500 Renovation Cost ROI of 34% $650 Interior Renovation Potential $500 $400 $300 $450 $525 $550 $560 $200 $100 $0 1 BR - 1 BTH 1 BR - 1 BTH - Renovated 2 BR - 1 BTH 2 BR - 1 BTH - W/D Conn. 2 BR - 1 BTH - W/D Conn. - Renovated 16 Investment Highlights

17 RENT COMPS 1 HIGHLAND HILLS Cherry Tree Hill THE CLIFFS 2 3 OVERLOOK GARDENS RIVER PARK 4 PROPERTY TOTAL UNITS YEAR BUILT AVG. SF/ UNIT AVG. RENT/ UNIT RENT/ SQ. FT. Cherry Tree Hill Apartments $509 $ Highland Hills Apartments ,244 $656 $ The Cliffs of Macon Apartments ,083 $730 $ Overlook Gardens Apartments ,025 $646 $ River Park Apartments / ,043 $631 $0.60 Averages ,099 $666 $ Investment Highlights

18 RENT COMPS Highland Hills 1 2 The Cliffs of Macon 2275 Gray Hwy Macon, GA Clinton Road Macon, GA Year Built: Total Units: Property Type: Total Area (SF): Garden 297,041 SF Year Built: Total Units: Property Type: Total Area (SF): Garden 157,412 SF Unit Mix and Rental Rates Bed/Bath Units Avf SF Avg Rent Per/SF 1 Bed / 1Bath $520 $ Bed / 1.5 Bath 2 1,142 $599 $ Bed / 1.5 Bath 60 1,220 $599 $ Bed / 2 Bath 60 1,175 $633 $ Bed / 2 Bath 1 1,187 $633 $ Bed / 2 Bath 40 1,257 $730 $ Bed / 2.5 Bath 2 1,493 $836 $ Bed / 2.5 Bath 36 1,798 $850 $0.47 Total/Avg 241 1,244 $656 $0.53 Unit Mix and Rental Rates Bed/Bath Units Avg SF Avg Rent Per/SF 1 Bed / 1 Bath $579 $ Bed / 2 Bath 35 1,000 $649 $ Bed / 2 Bath 35 1,200 $757 $ Bed / 2 Bath 35 1,400 $942 $0.67 Total/Avg 142 1,083 $730 $0.67 Unit Breakdown 3 Bedroom 32% 1 Bedroom 17% 2 Bedroom 51% Features & Amenities Balcony Storage Space Fully Equipped Kitchen Fireplace Walk-In Closets Picnic Area/Playground Pool Tennis Court Sport Court Unit Breakdown 4 Bedroom 25% 3 Bedroom 25% 1 Bedroom 26% 2 Bedroom 24% Features & Amenities Gated Full Equipped Kitchen Crown Molding Balcony Laundry Facilities Pool Playground Picnic Area Fitness Center Clubhouse/Grill 18 Investment Highlights

19 RENT COMPS Overlook Gardens 3 4 River Park 1400 Gray Hwy Macon, GA Year Built: Total Units: Property Type: Total Area (SF): Garden 253,576 SF 700 Tidewater Circle Macon, GA Year Built: Total Units: Property Type: Total Area (SF): 1977/ Garden 240,000 SF Unit Mix and Rental Rates Bed/Bath Units Avg SF Avg Rent Per/SF 1 Bed / 1 Bath $529 $ Bed / 1 Bath $604 $ Bed / 2 Bath 61 1,094 $664 $ Bed / 2 Bath 46 1,255 $764 $0.61 Total/Avg 184 1,025 $646 $0.63 Unit Mix and Rental Rates Bedrooms Units Avg SF Avg Rent Per/SF 1 Bed / 1 Bath $555 $ Bed / 1 Bath 54 1,081 $645 $ Bed / 2 Bath 38 1,083 $670 $ Bed / 2 Bath 76 1,235 $666 $0.54 Total/Avg 232 1,043 $631 $0.60 Unit Breakdown Features & Amenities Unit Breakdown Features & Amenities 3 Bedroom 25% 2 Bedroom 51% 1 Bedroom 24% Balcony Ceiling Fans Gated Volleyball Court Clubhouse Grill Laundry Facilities Playground Pool 3 Bedroom 33% 2 Bedroom 40% 1 Bedroom 27% Fitness Center Laundry Service Pool Air Conditioning Dishwasher Refrigerator 19 Investment Highlights

20 SALE COMPS MAGNOLIA CROSSING ASHLEY WOODS 5 2 Cherry Tree Hill CHAMBERS COVE 1 CREEKSIDE VISTAS CARRIAGE HILLS PARK SLOPE PROPERTY TOTAL UNITS YEAR BUILT SALE DATE SALE PRICE Price/Unit Cherry Tree Hill TBD TBD TBD 1 Magnolia Crossing Apartments /31/2015 $4,200,000 $36,207 2 Ashley Woods Apartments /8/2015 $3,300,000 $34,375 3 Chambers Cove Apartments /16/2015 $1,900,000 $26,389 4 Creekside Vistas Apartments /20/2016 $2,250,000 $25,500 5 Park Slope Apartments /27/2016 $2,200,100 $22,918 6 Carriage Hills Apartments /9/2015 $3,800,000 $23,750 Averages 113 2,941,683 $28, Investment Highlights

21 1 SALE COMPS Magnolia Crossing Apartments 461 Forest Hill Road Macon, GA Year Built: Total Units: Property Type: Total Area (SF): Sale Information Garden 136,740 SF Sale Date: 7/31/2015 Price/Unit: $36,206 Unit Mix and Rental Rates Sale Price: $4,200,000 Bed/Bath Units SF Avg Rent Per/SF 2 Bed / 1 Bath 24 1,100 $525 $ Bed / 1.5 Bath 65 1,100 $620 $ Bed / 2 Bath 16 1,300 $625 $ Ashley Woods Apartments 3900 Northside Drive Macon, Georgia Year Built: Total Units: Property Type: Total Area (SF): Sale Information Garden 84,000 SF Sale Date: 4/8/2015 Price/Unit: $34,375 Unit Mix and Rental Rates Sale Price: $3,300,000 Bed/Bath Units SF Avg Rent Per/SF 1 Bed / 1 Bath $572 $ Bed / 2 Bath 24 1,100 $928 $0.61 Total/Avg $597 $ Bed / 2.5 Bath 10 1,540 $760 $ Bed / 4 Bath 1 2,200 $1,200 $0.55 Total/Avg 116 1,175 $618 $0.53 Unit Breakdown 3 Bedroom 22% 4 Bedroom 1% 2 Bedroom 77% Features & Amenities Ceiling Fans Eat-in Kitchen Fireplace Dining Room Clubhouse Maintenance on site Playground Pool Health Club Discount Unit Breakdown 2 Bedroom 25% 1 Bedroom 75% Features & Amenities Balcony Walk-In Closets Cabana Gated Pool Playground Business Center Property Manager on Site 21 Investment Highlights

22 3 SALE COMPS Chambers Cove Apartments 208 Chambers Cove Drive Macon, Georgia Year Built: Total Units: Property Type: Total Area (SF): Garden 80,100 SF 4 Creekside Vistas Apartments 4690 Log Cabin Drive Macon, GA Year Built: Total Units: Property Type: Total Area (SF): Garden 79,060 SF Sale Information Sale Information Sale Date: 10/16/2015 Price/Unit: $26,388 Sale Price: $1,900,000 Sale Date: 12/20/2016 Price/Unit: $25,500 Sale Price: $2,250,000 Unit Mix and Rental Rates Bed/Bath Units SF Avg Rent Per/SF 2 Bed / 1.5 Bath Bed / 2 Bath Bed / 2 Bath Bed / 2 Bath 16 1, $0.68 Total/Avg Unit Mix and Rental Rates Bed/Bath Units SF Avg Rent Per/SF 1 Bed / 1 Bath $530 $ Bed / 1 Bath $548 $ Bed /1.5 Bath 32 1,015 $650 $0.64 Total/Avg $575 $0.73 Unit Breakdown Features & Amenities Unit Breakdown Features & Amenities 3 Bedroom 22% Dishwasher Eat-in Kitchen Balcony Pool Clubhouse Washer/Dryer Hook-up 2 Bedroom 32% Dishwasher Balcony Air Conditioning Maintenance on Site Washer/Dryer Hook-up 2 Bedroom 78% 1 Bedroom 68% 22 Investment Highlights

23 SALE COMPS 5 Park Slope Apartments 6 Carriage Hills Apartments 4406 Chambers Road Macon, Georgia Northside Drive Macon, Georgia Year Built: Total Units: Property Type: Total Area (SF): Garden 80,100 SF Year Built: Total Units: Property Type: Total Area (SF): Garden 216,262 SF Sale Information Sale Information Sale Date: 6/27/2016 Price/Unit: $22,917 Sale Price: $2,200,000 Sale Date: 1/9/2015 Price/Unit: $23,750 Sale Price: $3,800,000 Unit Mix and Rental Rates Unit Mix and Rental Rates Bed/Bath Units SF Avg Rent Per/SF 1 Bed / 1 Bath Bed / 1 Bath Bed / 1.5 Bath 12 1,064 Total/Avg Bed/Bath Units SF Avg Rent Per/SF 1 Bed / 1 Bath 40 1,000 $665 $ Bed / 1.5 Bath 88 1,175 $715 $ Bed / 2 Bath 32 1,300 $799 $0.61 Total/Avg 160 1,156 $719 $0.62 Unit Breakdown Features & Amenities Unit Breakdown Features & Amenities 3 Bedroom 13% 1 Bedroom 12% Dishwasher Carpet Disposal Walk-in Closet Property Manager on Site Trash Pick-up Door to Door 3 Bedroom 22% Balcony Ceiling Fans Playground Pool Dishwasher Laundry Facilities 2 Bedroom 78% 2 Bedroom 75% 23 Investment Highlights

24 24 Financial Analysis CHERRY TREE HILL

25 FINANCIAL ANALYSIS December 2016 March 2017 NAI Multifamily Extended Proforma Revenue Actual T-6 Revenue/T-12 Expenses Proforma - Year 1 Year 2 Year 3 Year 4 Year 5 Total Per Unit Total Per Unit Total Per Unit Total Total Total Total GROSS POTENTIAL RENT Market Rent $825,970 $5,434 $846,864 $5,571 $945,420 $6,220 $945,420 $964,328 $983,615 $1,003,287 Gain/(Loss) to Lease $0 $0 $0 $0 ($45,436) ($299) ($539) $0 $0 $0 TOTAL GROSS POTENTIAL RENT $825,970 $5,434 $846,864 $5,571 $899,984 $5,921 $944,881 $964,328 $983,615 $1,003,287 DEDUCTIONS Vacancy Loss ($41,377) ($272) ($57,103) ($376) ($56,725) ($373) ($56,725) ($57,860) ($59,017) ($60,197) Employee/Courtesy Officer ($5,400) ($36) ($5,400) ($36) ($5,400) ($36) ($5,400) ($5,400) ($5,400) ($5,400) Bad Debt-Rent Write-Off ($4,081) ($27) ($1,392) ($9) ($4,500) ($30) ($4,724) ($4,822) ($4,918) ($5,016) TOTAL DEDUCTIONS ($50,858) ($335) ($63,894) ($420) ($66,625) ($438) ($66,850) ($68,081) ($69,335) ($70,614) NET RENTAL INCOME $775,112 $5,099 $782,970 $5,151 $833,359 $5,483 $878,031 $896,247 $914,280 $932,674 OTHER INCOME Late Fees $22,338 $147 $18,580 $122 $19,000 $125 $19,000 $19,000 $19,000 $19,000 Laundry Income $5,281 $35 $3,452 $23 $5,000 $33 $5,000 $5,000 $5,000 $5,000 Lease Termination Income $9,640 $63 $6,800 $45 $7,500 $49 $7,500 $7,500 $7,500 $7,500 Other Income $14,979 $99 $14,696 $97 $14,750 $97 $14,750 $14,750 $14,750 $14,750 TOTAL OTHER INCOME $52,238 $344 $43,528 $286 $46,250 $304 $46,250 $46,250 $46,250 $46,250 TOTAL REVENUE $827,349 $5,443 $826,498 $5,437 $879,609 $5,787 $924,281 $942,497 $960,530 $978,924 EXPENSES Payroll $145,966 $960 $147,799 $972 $147,799 $972 $147,799 $147,799 $147,799 $147,799 Management Fees $23,870 $157 $19,958 $131 $35,184 $231 $36,971 $37,700 $38,421 $39,157 Administrative Expense $19,000 $125 $15,285 $101 $30,400 $200 $30,400 $30,400 $30,400 $30,400 Marketing $8,090 $53 $7,229 $48 $18,000 $118 $18,000 $18,000 $18,000 $18,000 Utilities $72,470 $477 $67,653 $445 $69,682 $458 $71,773 $73,926 $76,144 $78,428 Contract Services $25,831 $170 $25,052 $165 $25,052 $165 $25,052 $25,052 $25,052 $25,052 Repairs & Maintenance $69,911 $460 $65,535 $431 $91,200 $600 $93,936 $96,754 $99,657 $102,646 Taxes $31,258 $206 $31,818 $209 $58,128 $382 $58,128 $58,128 $58,128 $58,128 Insurance $19,904 $131 $22,359 $147 $38,000 $250 $38,380 $38,764 $39,151 $39,543 TOTAL EXPENSES $416,300 $2,739 $402,688 $2,649 $513,446 $3,378 $520,440 $526,523 $532,753 $539,154 NET OPERATING INCOME $411,050 $2,704 $423,809 $2,788 $366,163 $2,409 $403,842 $415,974 $427,777 $439,770 Reserves 54,108 $356 $54,108 $356 $54,108 $356 $54,108 $54,108 $54,108 $54,108 NET OPERATING INCOME (AFTER RESERVES) $356,942 $2,348 $369,701 $2,432 $312,055 $2,053 $349,734 $361,866 $373,669 $385,662 T-3 Revenue/T-12 Expenses NOI Adjusted for increase in taxes $343, Financial Analysis

26 ASSUMPTIONS - REVENUE & EXPENSES MARKET RENT Market Rents are based on a survery of market comparable properties (included in this package). LOSS TO LEASE Loss to Lease represents the difference between Market Rent and current in place rents. Proforma rent growth assumes that rents are increased $30 at renewal and brought to market rent at turnover. VACANCY LOSS Vacancy is assumed to be 6% and is based on historical performance. EMPLOYEE/COURTESY OFFICER UNITS Employees Concessions are based on historical performance and are set at $450 per month. BAD DEBT Bad Debt is assumed to be 0.5% which is consistent with historical performance. OTHER INCOME Other Income is based on historical performance. PAYROLL AND RELATED EXPENSES Payroll and Related Expenses is based on historical performance. MANAGEMENT FEES Management Fees are assumed to be 4% of Total Revenue. ADMINISTRATIVE EXPENSE Administrative Expense is assumed to be $200 per unit per year. MARKETING EXPENSE Marketing is assumed to be $1,500 per month. UTILITIES Utilities is based on historical performance and is assumed to increase at a rate of 3% per year. REPAIRS AND MAINTENANCE Repairs and Maintenance is assumed to be $600 per unit per year. TAXES Taxes are estimated to increase at point of sale. NAI Earle Furman and its associates are not tax professionals. Purchaser should consult with a tax professional to determine estimated taxes. INSURANCE Insurance is estimated to be $250 per unit per year. RESERVES FOR REPLACEMENT Reserves for Replacement are $54,108 per year as required under the current loan terms. 26 Financial Analysis

27 KEY VALUATION CONSIDERATIONS LENDING REQUIREMENTS Cherry Tree Hill is being offered for sale with the assumption of a Freddie Mac non-recourse loan. The note is an SBA loan and does not allow for a supplemental. The note terms are as follows: o Origination Date: November 6, 2013 o Original Balance: $2,500,000 o Rate: 4.81% o Maturity Date: December 1, 2023 Please contact NAI Earle Furman for further information regarding all aspects of the debt parameters. 27 Valuation

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