HIDDEN PINES. a 46-unit Multifamily Value-Add Investment Opportunity in Houston, Texas. Offering Brochure

Transcription

1 HIDDEN PINES a 46-unit Multifamily Value-Add Investment Opportunity in Houston, Texas Offering Brochure

2 INVESTMENT HIGHLIGHTS Partially renovated and well-occupied apartment community with upside potential Convenient location two miles west of the 610 Loop and less than two miles north of Interstate 10 The property is in close proximity to Houston s top employment districts including The Energy Corridor (84,000 employees), CBD (150,000 employees), Uptown/Galleria (84,000 employees), and Westchase (81,000 employees) Located within the Spring Branch submarket which has experienced rental rate increases of 6.8% over the last 12 months Surrounding rental comparables achieve $1.01 to $1.26 per SF in market rents, providing a new owner significant upside to the current in-place rents of $0.90 per SF through the continuation of interior upgrades to the property Nearby Houston s best shopping and entertainment such as : City Centre, Memorial City Mall, Town & Country Boulevard, The Galleria, Uptown Park, Edwards Houston Marq E, and Northwest Mall Available All Cash

3 HIDDEN PINES

4 PROPERTY DETAILS PROPERTY PRICE TERMS ADDRESS Hidden Pines TBD UNITS 46 All Cash YEAR BUILT 1955 OCCUPANCY(FEB 2015) NET RENTABLE SF 23,428 STORIES/ BUILDINGS 2 / 4 LOT SIZE DENSITY AVG. UNIT SIZE 541 AVG. RENT/UNIT AVG. RENT/SF 7611 Jalna St. Houston, Texas % (physical) 42,085 sq. ft units / acre $487 ()/$618 (Proforma) $0.90 ()/$1.14 (Proforma) COMMUNITY AMENITIES Laundry Room (3 washers, 4 dryers) Onsite Mini- Office Wheelchair Accessible (rooms) Proximity to neighborhood schools and parks Proximity to major shopping, entertainment and employment centers INTERIOR FEATURES Frost Free Refrigerator Dishwashers Mini-blinds Laminate Wood Flooring Baseboards

5 SITE INFORMATION ADDRESS: 7611 Jalna St. Houston, Texas PROPERTY: s 46 Total Rentable SF 23,428 Year Built 1955 # of Buildings 4 Avg. SF 541 Stories 2 Avg. $487 Lot Size (acres) 0.96 Avg. SF $0.90 Density (units / acre) 47.6 CONSTRUCTION: Style Garden-style Foundation Concrete Slab Framing Wood Exterior Brick and Wood Roof Pitched,Composite Shingle Paving Asphalt Wiring Aluminum HVAC Window/ Central Plumbing Galvanized Electrical HVAC Water UTILITIES: Hot Water Heating Method RUBS PROPERTY STAFF: Individually metered Individual climatecontrolled units Mastered metered 2 Central 200k BTU Boilers None Property Manager (full-time) 1 Lead Maintenance Tech 1 TOTAL 2 DEPOSITS/OTHER FEES: Application Fee (non-refundable) $40 per applicant Efficiency Deposit $200 1 Bedroom Deposit $250 2 Bedroom Deposit $300 Pet Fee (non-refundable) $200 Restrictions no aggressive breeds SCHOOLS: School District Elementary Middle High Spring Branch I.S.D. Treasure Forest Elementary Landrum Middle School Northbrook High School

6 PROFORMA ANNUAL MONTHLY PER UNIT PER SF Gross Potential Rent $341,376 $28,448 $7,421 $13.71 Loss/Gain to Lease 2.00% (6,828) (569) (148) (0.27) Adjusted Gross Potential Rent 334,548 27,879 7, Vacancy Loss 5.00% (16,727) (1,394) (364) (0.67) Bad Debt 1.00% (3,345) (279) (73) (0.13) Total Rental Income 493,797 41,150 7, Other Income 10, Effective Gross Income 324,476 27,040 7, Operating Expenses Payroll & Benefits 27,600 2, General & Administrative 6, Repairs & Maintenance 18,400 1, Contract Services 5, Advertising & Promotion 5, Controllable Expenses 64,630 5,386 1, UNIT MIX Description # of s % of Total Avg SF SF Efficiency 16 35% 400 $400 $1.00 1Bed 20 43% 550 $500 $0.91 2Bed 10 22% 750 $600 $0.80 Totals/Avg % 541 $487 $0.90 UNIT MIX CURRENT MARKET PROFORMA Efficiency 16 35% 400 $508 $1.27 1Bed 20 43% 550 $635 $1.15 2Bed 16 22% 750 $762 $1.02 Totals/Avg % 541 $618 $1.14 Utilities 36,800 3, Insurance 18,400 1, Management Fee 16,224 1, Gross Receipts Tax 1, Property Taxes 30,486 2, Operating Expenses Before Reserves (168,405) (14,034) (3,661) (6.76) Replacement Reserves 13,800 1, Total Operating Expense (182,205) (15,184) (3,961) (7.32) NET OPERATING INCOME $142,270 $11,856 $3,093 $5.71 PROFORMA NOTES 1. Gross Potential Rent is per the Proforma rent schedule shown above 2. Other Income is estimated at $217 per unit 3. Management Fee is based on 5.00% of Effective Gross Income 4. Property Taxes based on 150% of the 2014 tax value at the 2014 tax rate 5. Replacement reserves are estimated to be $300 per unit and do not reflect actual capital expenditures TAX INFORMATION Appraisal District Harris County 2014 Tax Rate % Account # Land $126,255 Improvements $609,699 Total 2014 Tax Value $735,954 Disclaimer: The proforma is delivered only as an accommodation and neither Seller, Transwestern nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such proforma. Purchaser must make its own investigation of the Property and any existing or available financing, and must independently confirm the accuracy of the projections contained in the proforma.

7 RENT COMPARABLES HIDDEN PINES Kempwood Dr 1 Hammerly Blvd Watonga Blvd N Property Type Total s Avg EFF $400 $ Jalna St. 1 BR $500 $0.91 Houston, TX BR $600 $0.80 Built: 1955 Occupancy: 90% Bingle Rd Long Point Dr 2 Westview Dr Wirt Rd Antoine Dr 5 Hempstead Rd. Silber Rd W 19th St Totals/Avg $487 $0.90 LOCK Property Type Total s Avg Property Type Total s Avg 1 Aspenwood 4 Long Point Plaza 2121 Pech Rd. 1 BR $741 $ Woodvine Dr. EFF $609 $1.68 Houston, TX BR $937 $0.95 Houston, TX BR $758 $1.17 Built: 1971 Built: BR $808 $0.96 Occupancy: 95% Occupancy: 99% Totals/Avg $812 $1.01 Totals/Avg $760 $1.10 Glens, The 5 Shavelson, The Pech Rd. 1 BR $791 $ Shavelson St. 1 BR $950 $1.30 Houston, TX BR $1,003 $1.08 Houston, TX BR $1,200 $1.21 Built: 1964 Built: 1964 Occupancy: 94% Occupancy: 68% Totals/Avg $916 $1.14 Totals/Avg $1,056 $1.26 Highpoint 6 Woodvine Highcrest Dr. 1 BR $625 $ Long Point Rd. EFF $600 $1.26 Houston, TX BR $750 $1.00 Houston, TX BR $725 $1.01 Built: 1975 Built: BR $875 $1.05 Occupancy: 99% Occupancy: 97% 3 BR 12 1,100 $1,000 $0.91 Totals/Avg $667 $1.03 Totals/Avg $778 $1.03 DEMOGRAPHICS (Population) SUBMARKET Radius 1 Mile 3 Mile 5 Mile Spring Branch 2019 Projection 22, , ,172 Occupancy +0.5% (annualized) in last 12 months 2014 Estimate 20, , ,611 Rental Rates +6.4% (annualized) in last 12 months 2010 Census 20, , ,652 Absorption +151 units in 2014 (0.82% of submarket) Growth % 8.05% 8.22% Occupancy Class A: 92.2%, Class B: 93.0%, Class C: 93.2%, Class D: 93.7% 2014 Avg Household Income $68,278 $80,846 $89,060 Averages Size: 917 SF Eff. Rent: $809 Eff. Rate: $0.88

8 N N 45 HIDDEN PINES 290 Gessner Rd LONG POINT RD. 610 Hammerly Blvd Long Point Rd 10 JALNA ST. Memorial Park HIDDEN PINES ENERGY CORRIDOR 59 LONGPOINT RD. (84,000 EMPLOYEES/ 2,000 BUSINESSES) CITY CENTRE MEMORIAL MEMORIAL HERMANN CITY MALL MEDICAL CENTER TERRY HERSHEY PARK WESTCHASE DISTRICT THE VILLAGES (RESIDENTIAL) NORTHWEST MALL JALNA ST. FREED PARK WIRT DR. N Gessner Rd HIDDEN PINES Houston CBD EDWARDS MARQ E CENTER MEMORIAL PARK HOUSTON COUNTRY CLUB UPTOWN DISTRICT/ GALLERIA WESTHEIMER RD. (81,000 EMPLOYEES/ 4,400 BUSINESSES) (80,000 EMPLOYEES/ 2,000 BUSINESSES) FOR MORE INFORMATION, PLEASE CONTACT: Ryan Mendez Senior Associate ryan.mendez@transwestern.com Ed Cummins Senior Vice President ed.cummins@transwestern.com Lupe Olivares Assistant Vice President lupe.olivares@transwestern.com 1900 West Loop South, Suite 1300 Houston, Texas T F The information provided herein was obtained from sources believed reliable; however, Transwestern makes no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions, prior sale or lease, or withdrawal without notice. Copyright 2015 Transwestern This offering is submitted and received with the understanding that all offers for the acquisition of the herein described property will be conducted through Transwestern. The Seller and Transwestern expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice.