Offering Memorandum MARBLE FRONT APARTMENTS 402 N MICHIGAN AVE CALDWELL, ID 83605

Transcription

1 Offering Memorandum MARBLE FRONT APARTMENTS 402 N MICHIGAN AVE CALDWELL, ID LINCOLN HAGOOD lincoln.hagood@colliers.com BRYANT JONES bryant.jones@colliers.com This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved

2 PROPERTY OVERVIEW PROPERTY PROFILE Address 402 N Michigan Ave Caldwell, ID Building Size 15,478 sf Land Size 1.05 Acres Year Built 1995 Rehabbed 2005 Zoning R-3 High density residential Parking 28 Stalls Occupancy 100% NOI $78,161 Cap Rate 7.10% Sale Price $1,100,000 $71.06 PSF HIGHLIGHTS > 100% Occupancy > Huge Upside potential > Possible 7.84% Cap Rate with conversion of managers office to 15th Unit > Estimated cost of office conversion to 2 bed, 1 bath is $20,000 > Expenses are at 33.5% > Park and Playground area in the middle of the complex > Located less than 200 yards from Caldwell s Luby Park > Less than 1/3 of a mile from 10th Ave Exit and 1 mile from Historic Downtown Caldwell > Part of the HUD HOME Program through 2025 > 5 buildings consisting of 13 3 bed/1 bath and 1 2 bed/1 bath COLLIERS INTERNATIONAL P. 2

3 PROPERTY OVERVIEW NORTH SITE COLLIERS INTERNATIONAL P. 3

4 PROPERTY OVERVIEW Travel Times SITE From Marble Front Apartments» Downtown Caldwell 5 Minutes» Downtown Nampa 15 Minutes» Meridian 20 Minutes» Downtown Boise 26 Minutes» Boise Airport 28 Minutes Times are based on average traffic conditions COLLIERS INTERNATIONAL P. 4

5 HUD HOMES ABOUT THE PROGRAM: Marble Front Apartments was financed through a federal affordable housing program and is subject to certain restrictive covenants that run with the land. These restrictions include rent and income restrictions on eleven (11) of its three (3) bedroom units, with a period of affordability that is set to expire July 21, At that time, the rent and income restrictions will expire and the property may convert to market rate. On the rent and income restricted units the maximum allowable rent is $750 per month. The reporting requirements consist of annual owner certifications, tenant file and physical inspections, and it is estimated that this results in thirty (30) to fifty (50) hours of annual administrative staff time. COLLIERS INTERNATIONAL P. 5

6 VALUE ANALYSIS CURRENT RENT VALUE Marble Front Analysis SF Rent Units Rent/Mo 2 bed Unit $600* 3 bed Units - 50%H $8,250 3 bed Unit - Current $650 * 3 bed Unit - Current $750 Monthly Total 14 $10,250 Current Annual Rent $123,000 Expenses Maintenance $7,614 Taxes $9,085 Insurance $4,108 Utilities $12,962 Management Fee 6% $7,380 Expenses Total $41,149 Vacancy at 3% $3,690 Current NOI $78,161 List Price $1,100,000 Current Cap Rate 7.106% PRO-FORMA VALUE Marble Front Analysis SF Rent Units Rent/mo 2 bed Unit $650 3 bed Units - 50%H $8,250 3 bed Unit - Current $1,500 2 bed Unit - Managers Office $725 Monthly total 15 $11,125 Upside Annual Rent $133,500 Expenses Maintenance $7,614 Taxes $9,085 Insurance $4,108 Utilities $12,962 Management Fee 6% $8,010 Expenses Total $41,779 Vacancy at 3% $4,005 Upside NOI $87,716 Price $1,100,000 Office Conversion Cost $20,000 Upside Cap Rate 7.832% * The current use for this property has been for transitional housing through HUD programs, thus, rents have been kept artificially low at $600 and $650, but current HUD restrictions allow up to $750, which a buyer could elevate to now. In 2025, rent restrictions of any type are lifted. COLLIERS INTERNATIONAL P. 6

7 DEMOGRAPHICS 1 Mile 3 Miles 5 Miles POPULATION 2016 Estimated Population 8,738 38,375 68, Projected Population 9,189 40,254 72, Census Population 8,321 35,875 63, Census Population 7,226 28,227 40,231 Historic Annual Growth 2000 to % 2.2% 4.4% HOUSEHOLD 2016 Estimated Households 2,757 13,211 23, Projected Households 2,960 14,121 24, Census Households 2,543 12,006 20, Census Households 2,305 9,787 14,011 INCOME 2016 Est. Average Household Income $45,951 $48,069 $52, Est. Median Household Income $32,598 $38,796 $43,239 MISC 2010 Median Home Value $111,110 $128,291 $137, Median Rent $493 $541 $ Est Labor Pop. Over 16 Years 6,586 28,844 50, Est. Total Household Expenditure $113M $562M $1.04B COLLIERS INTERNATIONAL P. 7

8 LINCOLN HAGOOD BRYANT JONES Colliers International Boise 755 W Front Street, Suite 300 Boise, Idaho This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved