Multi-Family Portfolio WEST DES MOINES IOWA

Transcription

1 OFFERING MEMORANDUM Multi-Family Portfolio WEST DES MOINES IOWA Jordan Creek Apartments 2168 GRAND AVENUE Westwood Apartments ND STREET

2 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 Property. Co-listed by: Jeff Stanbrough CCIM, CPM Jeff@StanbroughRealty.com Peter Jaques Peter@StanbroughRealty.com This is a Confidential Memorandum ( Memorandum ) intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of 2168 Grand Avenue and nd Street (the Property ). This Memorandum is prepared by Stanbrough Realty Company, LLC (the Broker ) on behalf of Aspen Invest LLC (the Owner ). This Memorandum contains selected information pertaining to the Property, including but not limited to the rent roll, lease expiration dates, etc. but does not purport to be a representation of the state of affairs of 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 the 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 Stanbrough. 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. 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. Neither the Owner or Stanbrough 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; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved 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. Commissions will not be paid to outside brokers. By receipt 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 Stanbrough. 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 Stanbrough. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Stanbrough. 2

3 DISCLOSURE AND OFFERING Table of Contents 2 CONFIDENTIALITY AGREEMENT 3 DISCLOSURE AND OFFERING 4 7 EXECUTIVE SUMMARY 8 FLOOR PLANS 9 10 GREATER DES MOINES METRO MARKET OVERVIEW 11 DEMOGRAPHICS 12 INVESTMENT SUMMARY FINANCIAL SUMMARY 15 CURRENT LOAN AND ASSUMPTIONS 16 DISCLOSURE OF AGENCY RELATIONSHIP 17 CONTACT US The seller reserves the right to remove the property from the market at any time. Seller expressly reserves the right, in its sole and absolute discretion, to reject any and all proposals, offers to purchase or letters of intent or interest in the property, to terminate discussion with any party at any time or to extend the deadlines in any agreement. EXCLUSIVE REPRESENTATION: Stanbrough Realty Company, LLC (the Broker ) has been retained as the exclusive marketing company of the Seller for the assets and sale contemplated by this Offering Memorandum. The Broker is licensed in the State of Iowa. Buyer is encouraged to seek legal counsel. CO-BROKER COMMISSION: No Brokerage commission or finder s fee shall be payable to any broker acting as a principal, referrer or buyer representative unless expressly agreed to in writing by Seller and Broker. OFFERING STRUCTURE: The properties offered herein are done so for a fee simple interest in the real estate and operations thereof. As such they are offered to qualified purchasers. Pre-qualification of potential buyers may be required by Broker. Seller reserves the right to accept an offer at any time during the marketing process. The properties are offered with assumable debt which is held in a CMBS. The assumption fee is 1% of the debt amount assumed at closing. Rates and Terms of the financing are disclosed elsewhere in this Offering Memorandum. BUYER S OFFER REQUIREMENTS: Offers to Seller shall include the following: (1) Proposed Purchase Price (2) The amount of earnest monies including the amount which is non-refundable (3) Source of funds to accomplish the transaction (4) Timing of inspection period (5) Buyer s required documentation (6) Financial history and summary of transactions closed by Buyer within the last twentyfour months; Offers made not including some of the requested details may be rejected by Seller. 3

4 EXECUTIVE SUMMARY PORTFOLIO PRICE $25,200,000 CAP RATE 6.79% UNITS 354 NOI $1,711,704 JORDAN CREEK APARTMENTS PROPERTY ADDRESS SQUARE FOOTAGE 192,222 UNITS 222 NOI $1,076,965 YEAR BUILT Grand Avenue West Des Moines, Iowa WESTWOOD APARTMENTS PROPERTY ADDRESS SQUARE FOOTAGE 122,094 UNITS 132 NOI $634,739 YEAR BUILT nd Street West Des Moines, Iowa WESTWOOD APARTMENTS JORDAN CREEK APARTMENTS 4

5 EXECUTIVE SUMMARY JORDAN CREEK APARTMENTS 5

6 EXECUTIVE SUMMARY WESTWOOD APARTMENTS 6

7 EXECUTIVE SUMMARY ASHWORTH ROAD JORDAN CREEK PARK WEST DES MOINES POLICE EP TRUE PARKWAY M&W MINI STORAGE GRAND AVENUE WEST DES MOINES CITY HALL SUNSET FOODS 1.6 miles from Westwood Apartments MILLS CIVIC PARKWAY SOUTH 35TH STREET RACCOON RIVER PARK 7

8 FLOOR PLANS Jordan Creek Apartments 2168 GRAND AVENUE Westwood Apartments ND STREET BATH KITCHEN LIVING ROOM ENTRY WALK-IN BATH KITCHEN LIVING ROOM ENTRY BATH KITCHEN LIVING ROOM ENTRY WALK-IN BATH KITCHEN LIVING ROOM ENTRY ONE GALLEY KITCHEN TWO S GALLEY KITCHEN ONE TWO S ONE BATHROOM BATH KITCHEN LIVING ROOM ENTRY WALK-IN BATH BATH KITCHEN LIVING ROOM ENTRY TWO S, EAT-IN KITCHEN TWO S TWO BATHROOMS 8

9 GREATER DES MOINES METRO MARKET OVERVIEW If you re looking for a vibrant, community-minded region where locals are connected to the heart of the city, look no further. Learn more about what makes Des Moines ideal for both residents and businesses. When you live and do business in Greater Des Moines (DSM), it s easy to see why it s ranked as a Top 10 Best Place for Business and Careers (Forbes, 2016). In addition to a 15 percent lower cost of doing business, Des Moines is one of the fastest-growing metros in the country (U.S. Census Bureau) and, compared to Midwest peers, is among the highest in employment growth and gross metro product growth. New and existing businesses have access to the resources they need to thrive. According to the Greater Des Moines Workforce Analysis (September 2016), the total potential labor force in the region is 653,030. Des Moines highly specialized, highly educated workforce and low unemployment rate make locating a business in the region even more enticing. A new public high school graduation rate has been released for Iowa, with the state now graduating 91.3 percent (2016) of its students. The region s rate sits slightly higher, and with 35 percent of the region s workforce having attained a bachelor s degree or higher, major employers from key industries around the region tap into Iowa s talent to make their businesses more efficient and profitable. For Des Moines residents, it is typical to find combined cost of living savings 10 percent below the national average. THE COST OF DOING BUSINESS LOWER 15% THAN NATIONAL AVERAGE #1 BEST CITY FOR YOUNG PROFESSIONALS FORBES, 2014 #5 AMERICA S 10 BEST CITIES FOR RETIREMENT BANKRATE, 2015 #2 MOST AFFORDABLE PLACE TO LIVE U.S. NEWS & WORLD REPORT, 2016 #4 STRONGEST ECONOMY POLICOM CORPORATION #2 BEST CITY FOR JOBS IN 2015 FORBES, 2015 #1 METRO WITH THE MOST PRIDE IN THEIR COMMUNITY GALLUP,

10 GREATER DES MOINES METRO MARKET OVERVIEW Des Moines is the largest city and metropolitan area within the state of Iowa. Des Moines is located within the south central portion of the state. MINNEAPOLIS 241 MILES 35 With its location at the crossroads of the nation and its immediate access to transportation infrastructure such as Interstates 80 and 35, Des Moines has been recognized as a prime location for logistics, warehouse and distribution facilities. According to Forbes magazine, over the past three years Des Moines has ranked amongst the top five for livable cities, places to find jobs and places for Millennials. Des Moines has continued to grow over the last 20+ years, most notably in its downtown region and has lured a number of new startup businesses to the area, making Des Moines amongst the top five Emerging Start Up Cities of 2015 (Investopedia, March 2015). Des Moines has continued growth in its future, while still feeling small enough to make for manageable commutes and better air quality, the report said. Major tech companies such as Apple, Facebook, Google, and Microsoft, have found Des Moines to be a strategic and cost-effective location for data center operations. It s why the region has become a Top 10 location for data centers nationally, according to CBRE. Insurance and financial services play a significant role in the Des Moines economy. The area is an insurance hub, with more than 80 insurance companies located here and the highest concentration of employment in insurance and financial services in the United States. 80 OMAHA 138 MILES DES MOINES CHICAGO 298 MILES According to CNN, Des Moines had a strong performance in the unemployment metric, where it had the 9th best ranking of all 101 cities, with a 2014 unemployment rate of 4.5 percent. Iowa ranks among the top ten for employment in the country. The Des Moines metropolitan area, officially known as the Des Moines-West Des Moines, IA Metropolitan Statistical Area (MSA), consists of five counties: Polk, Dallas, Warren, Madison, and Guthrie. The 2010 census population of these counties was 569,633, and the 2014 estimated population was 611,549 showing rapid growth over the last years and steady growth over the last 35 years. KANSAS CITY 185 MILES ST. LOUIS 333 MILES BOUNDARIES North: I-80/35 South: Highway 5 West: I-235 East: Highway 65 10

11 DEMOGRAPHICS JORDAN CREEK APARTMENTS POPULATION 3 MILES 5 MILES 10 MILES 2022 POPULATION 64, , , POPULATION 60, , , HOUSEHOLDS 25,501 64, , HOUSING UNITS 27,010 68, ,922 OWNER OCCUPIED 57.8% 58.1% 61.8% RENTER OCCUPIED 36.7% 35.8% 31.6% PER CAPITA INCOME $41,612 $39,310 $33,688 AVERAGE HOUSEHOLD INCOME $97,642 $91,362 $84,506 MEDIAN AGE UNEMPLOYMENT RATE 2.4% 2.6% 3.3% WESTWOOD APARTMENTS POPULATION 3 MILES 5 MILES 10 MILES 2022 POPULATION 71, , , POPULATION 64, , , HOUSEHOLDS 27,106 55, , HOUSING UNITS 28,935 58, ,111 OWNER OCCUPIED 60.2% 64.1% 61.1% RENTER OCCUPIED 33.5% 30.2% 32.2% PER CAPITA INCOME $44,210 $43,160 $34,790 AVERAGE HOUSEHOLD INCOME $105,721 $105,126 $86,604 MEDIAN AGE UNEMPLOYMENT RATE 1.9% 2.0% 3.2% KEY FACTS ,738 AVERAGE HOUSEHOLD SIZE POPULATION MEDIAN AGE SOURCE: U.S. Census Bureau, Census 2010 Summary File 1. Infogroup. ESRI forecasts for 2017 and ESRI converted Census 2000 data into 2010 geography. HOUSEHOLDS BY INCOME INDICATOR VALUE DIFFERENCE <$15, % -1.4% $15,000 $24, % -1.0% $25,000 $34, % -0.5% $35,000 $49, % -0.5% $50,000 $74, % -0.7% $75,000 $99, % 0 $100,000 $149, % +1.1% $150,000 $199, % +1.0% $200, % +2.1% DATA NOTE: Bars show deviation from Polk County. The largest group: $50,000 $74,999 (19.8%). The smallest group: $150,000 $199,999 (6.7%). $67,695 MEDIAN HOUSEHOLD INCOME 74% WHITE COLLAR 12% BLUE COLLAR 14% SERVICES INCOME $39,310 PER CAPITA INCOME EMPLOYMENT 2.6% $123,153 MEDIAN NET WORTH UNEMPLOYMENT RATE EDUCATION 5% 49% B ACHELOR S/ GRAD/PROF DEGREE 29% SOME COLLEGE 18% HIGH SCHOOL GRADUATE NO HIGH SCHOOL DIPLOMA BUSINESS 7,172 TOTAL BUSINESSES 119,458 TOTAL EMPLOYEES 11

12 INVESTMENT SUMMARY SALES COMPARABLES PROJECT NAME ADDRESS NUMBER OF UNITS SALE PRICE PRICE PER UNIT SALE DATE JOHNSTON GARDENS WOODLAND RESERVE GRAND STRATFORD PARKWAY APARTMENTS THE MADISON WELLINGTON RENTAL COMPARABLES 5705 Merle Hay Road Johnston, IA 110 NE 41st Street Ankeny, IA th Street Des Moines, IA 3650 Patricia Drive Urbandale, IA 4912 Mortensen Road Ames, IA 4700 EP True Parkway West Des Moines, IA PROJECT NAME ADDRESS UNIT SIZE MONTHLY RENT WESTBROOKE CHAPEL RIDGE THE FOUNTAINS WELLINGTON st Street West Des Moines, IA 4100 EP True Parkway West Des Moines, IA 5101 Hawthorne Drive West Des Moines, IA 4700 EP True Parkway West Des Moines, IA 72 $8,800,000 $122,222 May 24, $28,415,900 $90,496 September 14, $3,300,000 $66,000 May 3, $7,980,000 $66,500 May 31, $18,500,000 $128,472 September 17, $33,300,000 $79,285 July 30, Bedroom $910 $925 2 Bedroom $770 $820 2 Bedroom $945 $ Bedroom $895 $

13 DISCLOSURE OF AGENCY RELATIONSHIP The undersigned acknowledge that Jeff Stanbrough and Peter Jaques as an Appointed Agent(s) of Stanbrough Realty Company represents X SELLER/LANDLORD and/or BUYER/TENANT named below (hereinafter the Client ) with respect to the sale or lease of the following property: Jordan Creek Apartments and Westwood Apartments. If the Appointed Agent(s) represent both the Seller/Landlord and Buyer/Tenant, the duties of the Appointed Agent(s) are set forth in the Dual Agency Consent Forms executed by each client and those forms are incorporated herein as if fully set forth. If the Appointed Agent(s) represent either the Seller/Landlord or Buyer/Tenant, but not both, the Appointed Agent has the following duties to its client: (a) Place the client s interests ahead of the interests of any other party unless loyalty to a client violates a duty as a disclosed dual agent or other applicable law. (b) Disclose all information known that is material to the transaction that is not known by the client or could not be discovered by the client through a reasonably diligent inspection. (c) Fulfill any obligations within the scope of the brokerage agreement, except those obligations which are inconsistent with other duties the Appointed Agent(s) has under law. (d) Disclose any financial interests Appointed Agent(s) has in any business entity to which the client has been referred for any service or product related to this transaction. The following duties apply to all parties: (a) To provide brokerage services to all parties in the transaction honestly and in good faith. (b) To diligently exercise reasonable skill and care in providing brokerage services to all parties. (c) To disclose to each party all material adverse facts that we know, except for the following: (1) Material adverse facts known by that party. (2) Material adverse facts a party could discover through a reasonably diligent inspection and which would be discovered by a reasonably prudent person under like or similar circumstances. (3) Material adverse facts the disclosure of which is prohibited by law. (4) Material adverse facts that are known to a person who conducts an inspection on behalf of a party. (d) To account for all property coming into the possession of the Broker or the Appointed Agent(s) that belongs to any party within a reasonable time after receiving the property. Stanbrough Realty Company and its licensees may provide brokerage services simultaneously to more that one party in different transactions. Each Party by signing this form acknowledges that this disclosure was made prior to providing specific assistance or prior to any offer being made or accepted by a party to a transaction, whichever is sooner. SELLER/LANDLORD: BUYER/TENANT: ITS: ITS: DATE: DATE: 16 13

14 CONTACT US SR Stanbrough realty Hickman Road, Suite 3B Clive, Iowa StanbroughRealty.com Jeff Stanbrough CCIM, CPM Peter Jaques

15 CONFIDENTIALITY AGREEMENT This Confidentiality Agreement ( Agreement ) is entered into the day of, 2017, by and between (herein Recipient ) and (Recipient s Broker) collectively referred to as Recipient and Stanbrough Realty Company, LLC (herein Provider ). Provider intends to provide Recipient with certain rent roll and financial statement information, which Provider considers to be confidential and proprietary for the following properties located in Des Moines, IA ( Confidential Information ). Jordan Creek Apartments 2120 Grand Ave West Des Moines, IA Westwood Apartments nd Street West Des Moines, IA Regarding its receipt of such information, Recipient agrees as follows: 1. Confidential Information means any and all property information provided by Provider or its agents to Recipients, whether oral or in writing, electronically or otherwise, all of which is intended by Provider to remain confidential. 2. Recipient agrees to hold in trust and confidence and, except with the written consent of Provider or as otherwise allowed herein, shall not disclose to third parties or use directly or indirectly for its own benefit or otherwise any portion of any Confidential Information. Recipient shall limit disclosure of and access to the Confidential Information to only such employees, agents and third parties ( users ) as are required to know to allow Recipient to achieve such purposes or uses as consented to in advance by Provider, and then only after such users have been made aware of this Confidentiality Agreement, the nature of the Confidential Information supplied, the need to prevent further dissemination of Confidential Information, and have also agreed to abide by the terms hereof. 3. This Agreement shall not apply to any Confidential Information of which Recipient becomes aware in the public domain or which is required to be disclosed by law or pursuant to valid court order, except that in such latter event Recipient shall immediately notify Provider of the disclosure requirements being placed upon Recipient, to allow Provider to appropriately respond to limit dissemination if Provider so desires. All Confidential Information shall remain solely the property of Provider 4. Recipient acknowledges a breach of this Agreement would cause irreparable harm to Provider, which harm could not be adequately compensated for by damages. Accordingly, in the event of such breach, Recipient acknowledges and agrees that Provider shall be entitled, at Provider s discretion, to injunctive relief and to recovery of costs of litigation from Provider as a result of a breach, including attorney fees. Nothing herein is to be construed as prohibiting Provider from pursuing any other damages or remedy available for such breach or threatened breach. 5. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their permitted successors and assigns. No amendment, modification or waiver of the terms or conditions of this Agreement shall be binding unless placed in writing and duly executed by the party(s) hereto to be bound therein. This Agreement shall be governed by the laws of the State of Iowa but as determined without application of its principles of conflicts of laws. 6. Provider makes no representations or warrantees regarding the information though it is believed to be reliable. IN WITNESS WHEREOF the parties have executed this Agreement as of the date first above written. Recipient: By: Name: Address: Phone: Its: By: Name: Address: Phone: Its: