VILLA BROOK APARTMENTS 104 UNITS

Transcription

1 Investment Properties Private Client Group Capital Markets MULTI-HOUSING INVESTMENT OPPORTUNITY OFFERING MEMORANDUM VILLA BROOK APARTMENTS 104 UNITS 125 S. Villa Avenue Addison, Illinois

2 Villa Brook Apartments TABLE OF CONTENTS The property...i Financial analysis...ii Comparable sales...iii property photographs...iv DEMOGRAPHICS...V Confidentiality agreement...vi Swift Rohlwing 290 Lombard Lake Army Trail ADDISON Grace Mill SUBJECT PROPERTIES Fullerton Addison WOOD DALE 3rd Ave 290 Villa Route Grand Lake Church Elk Grove Park Village Ridge 290 Addison Downers Grove 355 Darien 55 Lemont Lockport Elmhurst 88 Oak Brook Properties 294 Countryside Burr Ridge Melrose Park 45 Oak Park Orland Park Tinley Park 80 Mokena Evanston 94 Chicago Oak Lawn 290 Alsip Harvey Homewood 294 CB Richard Ellis, Inc. is pleased to offer this multifamily investment opportunity located in Addison, Illinois, just west of Route 83, and south of Lake Street. The Villa Brook Apartments consist of 104 residential units, all with one-bedroom, one-bathroom floor plans. The property provides investors with excellent cash flow and historical occupancy. Over 27 years of ownership pride is reflected in the Property s impressive condition, and loyal tenant base. 64 North York LOMBARD Ardmore Saint Charles 1st St ELMHURST MILES VILLA PARK 83

3 EXECUTIVE SUMMARY EXECUTIVE SUMMARY Purchase Price $6,100,000 Number of Units 104 Number of Buildings 6 Price/Unit $58,654 Effective Gross Annual Income $795,312 Operating Expenses $242,124 Real Estate Tax 2007 $111,713 NOI $441,475 Cap Rate 7.24% GRM 7.36 Year Built CB Richard Ellis. We obtained the 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 other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Villa brook apartments THE PROPERTY [ PAGE 1 ]

4 Locator Map and Aerial Photograph property location Addresses: 103, 125, 129, 171, 179 & 195 S. Villa Avenue Municipalities: Village of Addison, Addison Township, DuPage County This offering consists of six buildings within the Villa Recreation Association near Addison s eastern border. These buildings are situated on the east side of Villa Avenue between Lake Street (Rt. 20) and Fullerton Avenue. Map Key Address Unit Count A 103 S. Villa Ave. 20 B 125 S. Villa Ave. 18 C 129 S. Villa Ave. 22 D 171 S. Villa Ave. 14 E 179 S. Villa Ave. 16 F 195 S. Villa Ave. 14 TOTAL 104 ARMY TRAIL LAKE (US RT. 20) CHURCH ADDISON SUBJECT PROPERTIES GRAND GRAND GRAND GRAND GRAND GRAND GRAND GRAND GRAND A B C FULLERTON VILLA VILLA VILLA VILLA VILLA VILLA VILLA VILLA VILLA IL ROUTE VILLA VILLA VILLA VILLA VILLA VILLA VILLA VILLA VILLA AVENUE AVENUE AVENUE AVENUE AVENUE AVENUE AVENUE AVENUE AVENUE D E F / 4 M i l e s 1 / 2 Villa brook apartments THE PROPERTY [ PAGE 2 ]

5 Investment Highlights ASSET FEATURES New, tear-off roofs and newer boilers in four buildings Exceptionally clean condition reflects 27 years of ownership pride. Meticulous management has left virtually no deferred maintenance. Established on-site management office Preserve land surrounding the property offers a quiet, natural setting. 26 laundry machines, all owned by landlord. Excellent access to transportation: I-290, Route 83, & North Avenue Average rents are only $664 per month. VILLA BROOK APARTMENTS C E F D A Building B Building C Building D Building E Building F Building B A S. VILLA AVE Villa brook apartments THE PROPERTY [ PAGE 3 ]

6 PROPERTY DESCRIPTION Construction: Entrances: Parking: HVAC: Water: Roof: Laundry: Electrical: Safety: Unit Interiors: The Property consists of six, free standing California Style buildings. Each building is two stories with a full basement. Perimeter walls are of concrete block with face-brick masonry construction, with wood joists between floors. Exterior walkways are poured concrete walking surfaces with steel beam support, and wrought iron railings. Rear balconies are wood joist with wood decking and enclosures. All units have direct access via exterior walkways, with semi-enclosed stairwells on the building fronts providing access to second floor units, and basement areas. The Association manages assigned parking for residents and guests. Each building has a designated parking space for each unit, along with several guest spaces. There are a total of 144 parking spaces appurtenant to these six buildings. Hot water baseboard heat is provided to all units from central hot water boilers located in the basement of each building. Boilers were replaced in four of the buildings in the past 10 years. Built-in sleeve-unit air conditioners are provided by the landlord. Each building has a central, gas fired, rapid-recovery hot water heater. Roofs of the 103, 125, 129, and 179 buildings were torn off and replaced within the past 24 months. The roofs on the 195 building and 171 building were replaced within the last 8 years. The roof of the 129 building is pitched with asphalt shingles. Roofs on all other buildings are flat and of rubber composition with silver coating. Coin operated laundry equipment is located in the basement areas of each building. All 26 laundry machines are owned by the landlord. Circuit breakers are located inside of each unit. Metering and service is located in the basement area of each building. All units have two battery-operated smoke detectors, and a carbon monoxide detector. Kitchens are equipped with an oven, range, hood and refrigerator, and all feature large pantries. All living rooms and bedrooms have original hardwood flooring, with the exception of the first floor of the 129 building, in which these areas are carpeted. Most units are equipped with ceiling fans in the bedroom and dinette areas, and almost all interior walls and all cielings are composed of plaster. Villa brook apartments THE PROPERTY [ PAGE 4 ]

7 villa brook APARTMENTS -- UNIT FLOOR plans Sample Floor Plan Open floor plans with over 550 square feet offer large living spaces, natural light and abundant storage. CLOSET CLOSET BEDROOM 12-7 x10-8 Hardwood floors in most living rooms and bathrooms, combine with natural wood trim and interior doors to provide a warm and inviting feel in these spacious onebedroom units. BATHROOM DINING ROOM 8-9 x7-0 REF. KITCHEN 9-3 x10-6 RANGE CLOSET LIVING ROOM 15-0 x12-10 SINK CLOSET All units have large kitchens with double sinks, abundant cabinetry, and separate dinette areas. DOWN TO FIRST FLOOR LEVEL Villa brook apartments THE PROPERTY [ PAGE 5 ]

8 Financial analysis Monthly Rent Roll 103 Buiding 125 Building 129 Building 171 Building 179 Building 195 Building Unit Rent Unit Rent Unit Rent Unit Rent Unit Rent Unit Rent 1 $670 1 $660 1 $670 1 $670 1 $670 1 $670 2 $670 2 $660 2 $670 2 $670 2 $670 2 $670 3 $670 3 $640 3 $660 3 $670 3 $670 3 $670 4 $670 4 $670 4 $670 4 $660 4 $670 4 $670 5 $670 5 $660 5 $670 5 $670 5 $670 5 $670 6 $660 6 $670 6 $670 6 $640 6 $670 6 $635 7 $670 7 $660 7 $670 7 $670 7 $670 7 $660 8 $630 8 $670 8 $660 8 $670 8 $670 8 $670 9 $670 9 $670 9 $650 9 $670 9 $660 9 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $670 * Vacant units are shown with the most recent rent information available CB Richard Ellis. We obtained the 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 other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Villa brook apartments FINANCIAL ANALYSIS [ PAGE 6 ]

9 Financial analysis RENT ROLL SUMMARY Operating Statement Unit # of Avg. Rent Avg. SF Rent Monthly Annual Type Units Per Mon. PSF Total Total 1-Bedroom 104 $ $1.16 $69,080 $828,960 5% Vacancy & Credit Loss ($3,454) ($41,448) (1) Effective Rental Income $65,626 $787,512 Laundry (coin revenue) $650 $7,800 Effective Gross Income $66,276 $795,312 EXPENSES % Gross $/SF $/Unit Annual Real Estate Taxes % 1.87 $1,074 $111,713 Insurance 2.29% 0.32 $183 $19,024 (2) Gas 5.61% 0.78 $447 $46,535 Electricity 0.76% 0.11 $61 $6,293 Water & Scavenger 6.13% 0.85 $489 $50,849 Electricity (vacancy) 0.05% 0.01 $4 $453 Municipal Bld Inspections 0.35% 0.05 $28 $2,938 Association Fees 3.76% 0.52 $300 $31,200 (3) Decorating/Cleaning Units 2.51% 0.35 $200 $20,800 (1) Repairs/Maintenance 2.51% 0.35 $200 $20,800 (1) Extermination 0.12% 0.02 $10 $1,000 (1) Management 4.00% 0.53 $306 $31,812 (1) Management Office Rent Loss 0.96% 0.13 $76 $7,920 Advertising 0.30% 0.04 $24 $2,500 (1) Total Expenses 42.85% $5.92 $3,402 $353,837 NET OPERATING INCOME: $441,475 (1) Expenses imposed by broker to reflect market rates and lender underwriting criteria. (2) Insurance expense includes flood insurance premium. (3) Association Fees include landscaping, snow removal, and common area electricity. comments on operating statement Current ownership manages the property without third party management. Historic and current occupancy is over 95% A small amount of electricity is used from one of the buildings for illuminating the Villa Brook signage, and the expense is reimbursed by the association (not indicated on Operating Statement). Additional Profit Center Available: Current ownership also manages the Villa Brook Recreational Association. Prospective purchasers interested in additional revenue may explore taking over the management of this association. Responsibilities include managing the lawn care/landscaping, snow removal, and parking enforcement for all 13 buildings in the complex CB Richard Ellis. We obtained the information on this page 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 other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. Villa brook apartments FINANCIAL ANALYSIS [ PAGE 7 ]

10 COMPARABLE SALES addison sales 150 S. Lincoln, Addison Sale Date: Sept Price: $1,975,000 Units: 23 Price/Unit: $85,870 Unit mix not available. DuPage County sales 140 Quail Run, Carol Stream Sale Date: April 2008 Price: $5,225,000 Units: 60 Price/Unit: $87,803 (50) 2-Bedroom (10) 1-Bedroom 41 E. Blecke, Addison Sale Date: March 2007 Price: $840,000 Units: 12 Price/Unit: $70,000 (10) 1-Bedroom (2) Studio 1340 N. Main, Wheaton Sale Date: Sept Price: $5,457,000 Units: 78 Price/Unit: $70,192 (50) 2-Bedroom (28) 1-Bedroom 220 E. North Ave, Addison Sale Date: Nov Price: $875,000 Units: 11 Price/Unit: $79,545 (11) 1-Bedroom 1006 Argyle, Bensenville Sale Date: March 2008 Price: $3,250,000 Units: 48 Price/Unit: $67,708 (18) 2-Bedroom (30) 1-Bedroom 334 Dale, Addison Sale Date: April 2007 Price: $1,275,000 Units: 18 Price/Unit: $65,313 (9) 2-Bedroom (9) 1-Bedroom SUBJECT PROPERTY Price: $6,100,000 Units: 104 Price/Unit: $58,654 (104) 1-Bedroom villa brook apartments comparable sales [ PAGE 8 ]

11 Property PHotographs -- exterior Villa brook apartments PROPERTY photographs [ PAGE 9 ]

12 Property PHotographs -- unit INTERIORS Villa brook apartments property photographs [ PAGE 10 ]

13 Property PHotographs -- MECHANICAL ITEMS AND INTERIOR COMMON AREAS Villa brook apartments property photographs [ PAGE 11 ]

14 Demographic Report 129 S Villa Ave 1 mile radius 129 S Villa Ave 3 mile radius 129 S Villa Ave 5 mile radius 2008 Estimated Population 12, , , Projected Population 12, , , Census Population 11, , , Census Population 10, , ,601 Growth % 1.64% 0.22% Growth % 0.72% 0.02% 2008 Estimated Median Age Estimated Average Age Estimated Households 3,953 38,485 89, Projected Households 3,986 38,893 89, Census Households 3,911 37,699 88, Census Households 3,790 36,370 84,641 Growth % 2.08% 0.75% Growth % 1.06% 0.37% 2008 Est. Average Household Size Est. Median Household Income $56,189 $63,010 $64, Prj. Median Household Income $59,037 $66,864 $68, Cen. Median Household Income $51,613 $58,013 $58, Cen. Median Household Income $38,958 $42,633 $43, Est. Average Household Income $66,454 $77,307 $79, Estimated Per Capita Income $22,457 $27,385 $28, Estimated Housing Units 4,051 39,772 92, Estimated Occupied Units 3,953 (97.6%) 38,485 (96.8%) 89,015 (96.1%) 2008 Estimated Vacant Units 98 (2.4%) 1,288 (3.2%) 3,580 (3.9%) 2008 Est. Owner Occupied Units 2,815 (69.5%) 28,275 (71.1%) 66,813 (72.2%) 2008 Est. Renter Occupied Units 1,138 (28.1%) 10,209 (25.7%) 22,201 (24.0%) 2008 Est. Median Housing Value $256,936 $274,848 $271, Est. Average Housing Value $273,253 $313,241 $314,162 villa brook apartments Demographics [ PAGE 12 ]

15 Confidentiality Agreement This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Villa Brook Apartments ( Property ). Oak brook private client This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and cb Richard Ellis. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner nor CB Richard Ellis, nor any of their respective directors, officers, affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. By your acceptance and review of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CB Richard Ellis. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CB Richard Ellis. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CB Richard Ellis CB Richard Ellis. We obtained the 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 other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. private client group 700 Commerce Dr., ste 550 oak brook, IL 60523