MADISON PARK 9743 EAST 12TH STREET TULSA, OK Benjamin Davis Managing Director Raymond Lord

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1 MADISON PARK 9743 EAST 12TH STREET TULSA, OK Benjamin Davis Managing Director Raymond Lord Managing Director SVN OAK REALTY ADVISORS 4812 E 81ST ST, STE 301, TULSA, OK OFFERING MEMORANDUM

2 1 PROPERTY INFORMATION 9743 East 12th Street Tulsa, OK SVN OAK Realty Advisors Page 2

3 Property Summary OFFERING SUMMARY PROPERTY OVERVIEW Sale Price: $5,300,000 SVN is pleased to announce the exclusive listing of Madison Park Apartments. This 128 unit apartment community represents a terrific opportunity to acquire a stable property with value add components. Current in place rents are $70 Number Of Units: 128 dollars below average according to a recent market study of comparable properties inside a 2 mile radius. Cap Rate: 7.75% In 2014 the property receive a significant renovation to both the exteriors and interiors and is in good position for a new NOI: $410,700 buyer to come in with strong management and increase current in place rents. The average occupancy in the area is above 94% and the majority of the employers in a 5 mile radius comes from the manufacturing and distribution sector Lot Size: 5.78 Acres which is one of the sectors the city of Tulsa has been targeting increasing specifically in aerospace. Year Built: 1973 Building Size: 108,800 SF Madison boasts a fantastic unit mix with nearly 20% 2 bed 2 bath townhomes to take advantage the tenant profile in the area as well as strong rental criteria to attract qualified tenants. The community has a number of different amenities including a swimming pool with large sundeck, onsite laundry facility, and spacious club house and leasing office. Renovated: 2014 Zoning: RS-2 Market: Tulsa Price / SF: $48.71 PROPERTY HIGHLIGHTS Current in place rents $70 dollars below market according to rent Yardi Matrix survey The immediate area boasts a number of local and national employers specifically in the manufacturing & distribution area which Tulsa has indicated being two sectors which they plan on targeting new companies Average area apartment occupancy of 94% within a 2 mile radius SVN OAK Realty Advisors Page 3

4 Unit Mix Summary UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF 1 Bed 1Bath $437 $0.63 $500 $ Bed 1Bath $469 $0.59 $525 $ Bed 1Bath $550 $0.61 $595 $ Bed 1.5 Bath $557 $0.59 $665 $ Bed 2 Bath TH ,000 $600 $0.60 $700 $0.70 Totals/Averages % 108,800 $65,966 $0.61 $74,880 $0.69 SVN OAK Realty Advisors Page 4

5 Property Description PROPERTY OVERVIEW SVN is pleased to announce the exclusive listing of Madison Park Apartments. This 128 unit apartment community represents a terrific opportunity to acquire a stable property with value add components. Current in place rents are $70 dollars below average according to a recent market study of comparable properties inside a 2 mile radius. In 2014 the property receive a significant renovation to both the exteriors and interiors and is in good position for a new buyer to come in with strong management and increase current in place rents. The average occupancy in the area is above 94% and the majority of the employers in a 5 mile radius comes from the manufacturing and distribution sector which is one of the sectors the city of Tulsa has been targeting increasing specifically in aerospace. Madison boasts a fantastic unit mix with nearly 20% 2 bed 2 bath townhomes to take advantage the tenant profile in the area as well as strong rental criteria to attract qualified tenants. The community has a number of different amenities including a swimming pool with large sundeck, onsite laundry facility, and spacious club house and leasing office. LOCATION OVERVIEW Madison Park is exceptionally well located just west of 169 on E 11th street. The property has a terrific unit mix to take advantage of the large number of manufacturing and distribution companies within a 5 mile radius such as American Airlines, Hilti, Spirit Aerosystems, Melton Truck Lines, and West Corp. Additionally, the area boasts a several large technical colleges, Tulsa Tech and Tulsa Welding School, as well as a number of national and regional headquarters such as State Farm Regional HQ and Quicktrip Corporate HQ. Residents have easy access to a number of local grocery stores, shopping centers, as well as freeways with direct access to the Tulsa Central Business District. Average apartment occupancies within a 2 mile radius is 94.2% according to a recent Yardi Matrix report with average rents at $585 which equates to approx 0.69 cents per square foot. Madison Park's current average in place rent at $515 which is $70 dollars below average market. SVN OAK Realty Advisors Page 5

6 Complete Highlights SALE HIGHLIGHTS Current in place rents $70 dollars below market according to rent Yardi Matrix survey The immediate area boasts a number of local and national employers specifically in the manufacturing & distribution area which Tulsa has indicated being two sectors which they plan on targeting new companies Average area apartment occupancy of 94% within a 2 mile radius Existing non-recourse financing through FNMA Excellent unit mix of 1, 2, and 2 bed TH's which is conducive to the tenant profile and jobs in the area All new 60 mil T.P.O. roofs (2014) All new double pane vinyl windows throughout (2014) Parking lotpatch, seal coat, re-stripe, and partial overlay (2014) All new down spouts anddrainage pads (2014) Updated Leasing office (2014) SVN OAK Realty Advisors Page 6

7 2 FINANCIAL ANALYSIS 9743 East 12th Street Tulsa, OK SVN OAK Realty Advisors Page 7

8 Financial Summary INVESTMENT OVERVIEW Price $5,300,000 Price per Unit $41,406 GRM 6.6 CAP Rate 7.8% Cash-on-Cash Return (yr 1) 11.44% Total Return (yr 1) $240,549 Debt Coverage Ratio 1.8 OPERATING DATA Gross Scheduled Income $800,000 Other Income $102,700 Total Scheduled Income $902,700 Vacancy Cost $0 Gross Income $902,700 Operating Expenses $492,000 Net Operating Income $410,700 Pre-Tax Cash Flow $181,951 FINANCING DATA Down Payment $1,590,000 Loan Amount $3,710,000 Debt Service $228,749 Debt Service Monthly $19,062 Principal Reduction (yr 1) $58,598 SVN OAK Realty Advisors Page 8

9 Income & Expenses SVN OAK Realty Advisors Page 9

10 3 LOCATION INFORMATION 9743 East 12th Street Tulsa, OK SVN OAK Realty Advisors Page 10

11 Area Map SVN OAK Realty Advisors Page 11

12 Aerial Map SVN OAK Realty Advisors Page 12

13 Additional Photos SVN OAK Realty Advisors Page 13

14 Additional Photos SVN OAK Realty Advisors Page 14

15 Additional Photos SVN OAK Realty Advisors Page 15

16 Additional Photos SVN OAK Realty Advisors Page 16

17 Additional Photos SVN OAK Realty Advisors Page 17

18 Additional Photos SVN OAK Realty Advisors Page 18

19 4 SALE COMPARABLES 9743 East 12th Street Tulsa, OK SVN OAK Realty Advisors Page 19

20 Sale Comps SVN OAK Realty Advisors Page 20

21 5 RENT COMPARABLES 9743 East 12th Street Tulsa, OK SVN OAK Realty Advisors Page 21

22 Rent Comparable Summary 128 Units 9743 East 12th Street Tulsa, OK (918) Madison Park Apartments January, 1973 Completed Date C Improvements Rating Location Rating C+ Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt One Bedroom 40.63% ,200 $433 $0.57 Two Bedroom/One Bath 18.75% ,600 $480 $0.53 Two Bedroom/One and One Half Bath 29.69% ,100 $493 $0.52 Two Bedroom/Townhouse/Two Bath 10.94% 14 1,000 14,000 $655 $0.66 Total/Average 100% ,900 $483 $ Units East 23rd Street Tulsa, OK (918) Belmont Park Townhomes Completed Date January, 1983 Improvements Rating B- Location Rating C+ Occupancy 98.1% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt Two Bedroom/Townhouse/One and One Half Bath % 54 1,083 58,482 $746 $0.69 Total/Average 100% 54 1,083 58,482 $746 $0.69 SVN OAK Realty Advisors Page 22

23 Rent Comparable Summary 208 Units 7625 East 21st Street Tulsa, OK (918) Colonial Park Apartments Completed Date January, 1968 Improvements Rating C- Location Rating C+ Occupancy 93.3% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt One Bedroom 23.08% ,800 $600 $1.00 Two Bedroom/One Bath 65.38% ,600 $650 $0.90 Three Bedroom/One and One Half Bath 11.54% ,800 $750 $0.91 Total/Average 100% ,200 $650 $ Units 8314 East 25th Place Tulsa, OK (918) Evergreen Apartments Completed Date Improvements Rating Location Rating Occupancy January, 1970 C+ C 93.8% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt One Bedroom 70.36% ,450 $540 $0.83 Two Bedroom/Two Bath 13.44% 34 1,010 34,340 $715 $0.71 Two Bedroom/Townhouse/One and One Half Bath Three Bedroom/Townhouse/One and One Half Bath 14.62% ,649 $681 $ % 4 1,222 4,888 $840 $0.69 Total/Average 100% ,327 $588 $0.78 SVN OAK Realty Advisors Page 23

24 Rent Comparable Summary 259 Units 139 North Garnett Road Tulsa, OK (918) Ivy Place Apartments Completed Date Improvements Rating Location Rating January, 1969 C+ C Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt One Bedroom 77.22% ,096 $480 $0.69 Two Bedroom/Two Bath 19.31% ,584 $629 $0.69 Three Bedroom/Townhouse/Two Bath 3.47% 9 1,368 12,312 $795 $0.58 Total/Average 100% ,992 $519 $0.68 Lakeside Place Apartments 208 Units 2186 South 99th East Avenue Tulsa, OK (918) Completed Date Improvements Rating Location Rating Occupancy January, 1975 C+ B- 91.8% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt One Bedroom 46.15% ,500 $468 $0.78 One Bedroom/Townhouse/One Bath 30.77% ,200 $547 $0.68 Two Bedroom/One and One Half Bath 23.08% ,800 $685 $0.73 Total/Average 100% ,500 $542 $0.74 SVN OAK Realty Advisors Page 24

25 Rent Comparable Summary Meadowbrook Apartments 117 Units 444 South Mingo Road Tulsa, OK (918) Completed Date Improvements Rating Location Rating Occupancy January, 1968 C C+ 95.7% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt Studio 2.56% ,305 $387 $0.89 One Bedroom 35.04% ,550 $481 $0.87 Two Bedroom/One Bath 62.39% ,600 $578 $0.66 Total/Average 100% ,455 $538 $0.72 Red Fox Apartments 84 Units 8120 East 16th Street South Tulsa, OK (918) Completed Date Improvements Rating Location Rating Occupancy January, 1973 C+ C+ 100% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt Studio 23.81% ,000 $463 $0.93 One Bedroom 57.14% ,600 $546 $0.78 Two Bedroom/One Bath 19.05% ,800 $630 $0.79 Total/Average 100% ,400 $542 $0.81 SVN OAK Realty Advisors Page 25

26 Rent Comparable Summary Ridgeview Apartments 155 Units 717 South 101st East Avenue Tulsa, OK (918) Completed Date Improvements Rating Location Rating Occupancy January, 1976 C+ C+ 91.6% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt One Bedroom 38.71% ,076 $528 $0.77 Two Bedroom/One Bath 61.29% ,600 $657 $0.66 Total/Average 100% ,676 $607 $0.69 Sierra Pointe Apartments 348 Units 1433 South 107th East Avenue Tulsa, OK (918) Unit Type Unit Description Completed Date Improvements Rating Location Rating % of Unit Total Count January, 1968 C+ C Size (SqFt) Market Rent Unit Total Total SqFt One Bedroom 22.99% ,200 $555 $0.87 Two Bedroom/One Bath 43.68% ,400 $685 $0.83 Two Bedroom/Townhouse/One and One Half Bath 13.79% ,200 $801 $0.89 Three Bedroom/One and One Half Bath 13.79% 48 1,000 48,000 $907 $0.91 Three Bedroom/Townhouse/One and One Half Bath 5.75% 20 1,000 20,000 $969 $0.97 Total/Average 100% ,800 $718 $0.87 SVN OAK Realty Advisors Page 26

27 Rent Comparable Summary Village East Apartments 235 Units East 23rd Street Tulsa, OK (918) Completed Date Improvements Rating Location Rating Occupancy January, 1971 C+ C+ 90.6% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt Studio 15.32% ,000 $424 $0.85 One Bedroom 25.53% ,360 $487 $0.71 Two Bedroom/One Bath 40.43% ,500 $585 $0.65 Two Bedroom/Townhouse/One and One Half Bath 16.17% 38 1,032 39,200 $652 $0.63 Three Bedroom/Two Bath 0.85% 2 1,125 2,250 $781 $0.69 Three Bedroom/Townhouse/Two Bath 1.70% 4 1,300 5,200 $780 $0.60 Total/Average 100% ,510 $550 $0.68 Whispering Oaks Apartments 65 Units 1140 South 101st East Avenue Tulsa, OK (918) Completed Date Improvements Rating Location Rating Occupancy January, 1960 C C+ 92.3% Unit Type Unit Description % of Total Unit Count Size (SqFt) Market Rent Unit Total Total SqFt One Bedroom 75.38% ,841 $573 $0.94 Two Bedroom/One Bath 24.62% ,400 $657 $0.85 Total/Average 100% ,241 $593 $0.91 SVN OAK Realty Advisors Page 27

28 Rent Comparable By Rank SVN OAK Realty Advisors Page 28

29 Rent Comparable By Rank SVN OAK Realty Advisors Page 29

30 6 DEMOGRAPHICS 9743 East 12th Street Tulsa, OK SVN OAK Realty Advisors Page 30

31 Demographics Report 1MILE 3 MILES 5 MILES Total population 10,188 78, ,671 Median age Median age (male) Median age (female) Total households 3,965 30,462 66,442 Total persons per HH Average HH income $43,320 $44,911 $46,671 Average house value $104,908 $96,513 $94,812 * Demographic data derived from 2010US Census SVN OAK Realty Advisors Page 31

32 Demographics Map POPULATION 1MILE 3 MILES 5 MILES Total population 10,188 78, ,671 Median age Median age (male) Median age (Female) HOUSEHOLDS & INCOME 1MILE 3 MILES 5 MILES Total households 3,965 30,462 66,442 # of persons per HH Average HH income $43,320 $44,911 $46,671 Average house value $104,908 $96,513 $94,812 * Demographic data derived from2010 US Census SVN OAK Realty Advisors Page 32

33 7 ADVISOR BIOS 9743 East 12th Street Tulsa, OK SVN OAK Realty Advisors Page 33

34 Advisor Bio RAYMOND LORD Managing Director 4812 E 81st ST STE 301 Tulsa, OK T C rlord@svn.com PROFESSIONAL BACKGROUND As an apartment specialist with SVN OAK Realty Advisors, in Oklahoma, Kansas and Arkansas, Raymond s primarily focus on multi-family properties since 1987 and their dispositions for banks, private clients as well as Institutional Investors. In addition he has an extensive background in the disposition of assets for FNMA, FDIC and in the past the RTC and various institutional investors, and banking assignments throughout the Midwest and Southwest region of the U.S. His forte is financial analysis of investments and effective marketing of assets both regionally and nationally. Raymond has transacted over $2.5 billion of transactions, including investment sales, joint ventures, redevelopment and recapitalization advisory assignments. SVN OAK Realty Advisors Tulsa OK Managing Director 2016 NAI Commercial Properties Tulsa OK Principal 2000 to 2016 Commercial Real Estate Tulsa OK Investment 1997 to 2000 The Lyon Group Management CA President American Village on the Lake 464 Units Tulsa OK Redfern Portfolio 1,465 Units Tulsa OK Woodlake Apartments 799 Units OKC OK One Western & Quail Ridge 150,000 SF Office OKC Brookline Office Complex 74,000 SF OKC Modern Bindery Industrial 100,000 SF Tulsa OK Macco Properties 1,541 units OKC OK Cobblestone 482 Units Tulsa OK Case & Associates 585 Units Phoenix American Residential 324 Units Tulsa OK Real Source 284 & 544 Tulsa / OKC Sterling American 682 Unit Tulsa OK EDUCATION Northrop School of Law, Los Angeles, CA, Juris Doctorate University of Florida, Gainesville, FL, BA Finance MEMBERSHIPS & AFFILIATIONS Multifamily Dispositions/Acquisitions ; Property Repositioning ; Court Appointed Approved Receiver Licensed Real Estate Broker, Oklahoma SVN OAK Realty Advisor's National Association of Realtors SVN OAK Realty Advisors Page 34

35 Advisor Bio BENJAMIN DAVIS Managing Director 4812 E 81st ST STE 301 Tulsa, OK T C bdavis@svn.com PROFESSIONAL BACKGROUND Ben is a Principal and Managing Director at SVN OAK Realty Advisors and has over 10 years of experience specializing in the marketing and sale of multifamily properties in the region. Since he began his career in 2006, he has been involved in the sale of over $400 million commercial real estate transactions and has proven himself to consistently be one of the top multifamily brokers in the region. EDUCATION Ben is a graduate of the University of Oklahoma with a Bachelors of Arts and Science. SVN OAK Realty Advisors Page 35

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