7TH AVE APARTMENTS 930 N 7TH AVE., TUCSON, AZ OFFERING MEMORANDUM

Transcription

1 7TH AVE APARTMENTS 930 N 7TH AVE., TUCSON, AZ OFFERING MEMORANDUM

2 Presented by: NorthMarq Multifamily Daniel Leibsohn SENIOR ASSOCIATE T C dleibsohn@northmarq.com NorthMarq Capital Alex Quenzler VICE PRESIDENT-PRODUCER T C aquenzler@northmarq.com Visit us online at northmarq.com Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253 PHOENIX, AZ MULTIFAMILY & MANUFACTURED HOUSING INVESTMENT SALES THIS DOCUMENT/ HAS BEEN PREPARED BY NORTHMARQ MULTIFAMILY FOR ADVERTISING AND GENERAL INFORMATION ONLY. NORTHMARQ MULTIFAMILY 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. NORTHMARQ MULTIFAMILY 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 NORTHMARQ MULTIFAMILY AND/ OR ITS LICENSOR(S) ALL RIGHTS RESERVED.

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4 PROPERTY SUMMARY OFFERING Price $890,000 Price Per Unit $74,167 Price Per Square Foot $ Terms Cash - Fee Simple SITE DESCRIPTION Apartment Community 7th Avenue Apartments Location 930 N 7th Ave. Total Units 12 Year Built 1954 Net Rentable Square Feet 7,512 Number of Buildings 2 Number of Stories 1 Sub-market University Land Size 0.42 Acres Density Units Per Acre Parking 12 Covered Spaces 5 Uncovered Spaces Laundry On-Site Laundry Facility MECHANICAL Heating / Cooling Hot Water Electricity Water / Sewer CONSTRUCTION Style Foundation Framing Exterior Roof Parking Surface Evaporative Coolers Commercial Boiler Paid by Tenant (Provided by TEP) Paid for by Owner (Landlord Owned Water Meters) Garden Style Concrete Wood Painted Block & Brick Pitched Shingle Asphalt PROPERTY TAXES Number of Parcels 4 Tax Parcel Number A; -218D 2018 Property Tax $5,744 UNIT TYPE # OF UNITS % OF COMPLEX SQUARE FEET TOTAL SF VACANT RENT RENT / SF AVERAGE IN-PLACE RENT AVERAGE RENT / SF TOTAL RENT TOTAL AVERAGE RENT 2BD/1BA % 626 7,512 3 $650 $1.04 $628 $1.00 $7,800 $7,536 4 NORTHMARQ MULTIFAMILY

5 PRO FORMA PRO FORMA OPERATING INCOME Monthly Scheduled Gross Rent $8,400 Annual Scheduled Gross Rent $100,800 Physical Vacancy 4.00% -$4,032 Economic Vacancy 3.00% -$3,024 Net Rental Income $93,744 Other Income $2,750 Gross Operating Income $96,494 PRO FORMA OPERATING EXPENSES PER UNIT Property Taxes $479 $5,744 Insurance $200 $2,400 Maintenance & Repairs $500 $6,000 Electricity $150 $1,800 Sewer and Water $600 $7,200 Trash $50 $600 Management Fee 7.00%OF GOI $563 $6,755 Marketing $50 $600 Administrative Expenses $100 $1,200 Capital Reserve $300 $3,600 TOTAL OPERATING EXPENSES $35,899 Operating Cost Per Unit $2,992 Operating Cost Per Sq Ft $4.78 PRO FORMA OPERATING INCOME $60,595 NOTES RENTS Increased $50 from current asking rents. PHYSICAL VACANCY Consistent with submarket performance. OTHER INCOME Estimated at $20/month/occupied unit. PROPERTY TAXES 2018 Annual property taxes quoted from the Pima County Treasurer. OPERATIONAL EXPENSES Based on industry standards of similar properties. MONTHLY RENT 2BD/1BA $700 $8,400 7TH AVE APARTMENTS 5

6 Tucson Medical Center Banner University Medical Center Tucson JW Marriot Starr Pass Resort Pima Community College Tucson Convention Center Downtown Tucson University of Arizona El Con Center Randolf Golf Course Park Place Mall Carondelet St. Joseph s Hospital Starr Pass Country Club Sentenial Peak Park 7TH AVE APARTMENTS Reid Park Zoo Saguaro National Park Santa Cruz River Park Southern Arizona VA Hospital Kino Sports Complex Davis-Monthan AFB Tucson Spectrum Mall Pima Air & Space Museum N 6 NORTHMARQ MULTIFAMILY Tucson International Airport

7 AREA HIGHLIGHTS 7TH AVENUE APARTMENTS IS WITHIN EASY ACCESS TO: > > University of Arizona - top ranked university with over 43,000 students enrolled, and a campus size of 392 acres. > > Downtown Tucson - ranks in the top 20 of Forbes Most Innovative Cities. There are 30 projects under construction or proposedincluding hotels, apartments, commercial space, parks, and roadway improvements. > > Banner University Medical Center Tucson bed acute-care hospital and Southern Arizona s only Level I Trauma Center. > > Tucson Medical Center bed locally governed nonprofit regional hospital. > > Carondelet St. Joseph s Hospital bed acute-care facility located on the east side of Tucson.. > > Park Place Mall - over one million square feet of fashion and entertainment featuring more than 125 stores. > > El Con Center - open-air shopping mall anchored by JCPenney, Target, The Home Depot, Burlington, and Walmart. > > Tucson Convention Center - 27-acre campus featuring 8,962-seat indoor arena, two performing arts venues, and 205,000 square feet of meeting space. > > Davis-Monthan Air Force Base - Part of the United States Air Force s Air Combat Command and is home to the 355th Fighter Wing, responsible for training and deploying A-10C Thunderbolt II pilots. Located five files southeast of downtown Tucson and employs 9,100. > > Tucson International Airport - over 10,000 passengers daily. > > Pima Air & Space Museum - one of the world s largest non-government funded aerospace museums featuring a display of over 350 aircraft spread out over 80 acres. > > Reid Park Zoo - 24-acre city-owned and operated non-profit zoo located within Reid Park. > > Randolph Golf Course - Longest golf course in the City of Tucson system with year round 18-hole, regulation length courses. > > Kino Sports Complex acres dedicated to soccer and long field activities with a lighted 2,000-seat North Grandstand field, four more soccer fields, and a 3,000-seat stadium (North Stadium), Kino is the largest professional sports and entertainment venue of its kind in Pima County. 7TH AVE APARTMENTS 7

8 DOWNTOWN TUCSON T U C S ON HIGH M A GN E T S C HOO L C ATA L IN A PA R K SP EE DW AY BL S 7TH AVE VD APARTMENTS DE A N Z A PA R K 8 N O R T H MA RQ M ULTI FAMI LY N TO E AV E

9 RENT COMPARABLES NO. PROPERTY YEAR BUILT UNITS UNIT SIZE AVG. SF PHYSICAL OCCUPANCY RENT/ UNIT RENT/ UNIT MANAGED BY S th Avenue Apartments 930 N 7th Ave. Lofts on 6th 835 N 6th Ave. Rincon 202 E University Blvd. Saratoga 901 N 1st Ave. Tucson, AZ % $650 $1.04 $650 $1.04 Owner % $871 $1.32 $871 $1.32 Bright % $765 $1.07 $765 $1.07 Owner % $867 $1.00 $867 $1.00 Owner 4 5 The Spot on 5th 746 E 5th St. Tucson, AZ Drachman E Drachman St % $806 $1.19 $806 $1.19 Apex % $502 $1.00 $502 $1.00 Equilibrium Average % $762 $1.11 $762 $1.11 7TH AVE APARTMENTS 9

10 7th Avenue Apartments 930 N 7th Ave. OWNER: Francis Denzel MANAGED BY: Owner 2BD/1BA $650 $1.04 $650 $1.04 TOTAL/AVG $650 $1.04 $650 $1.04 Rincon 202 E University Blvd. OWNER: Sokser Markus MANAGED BY: Owner S Studio $514 $1.37 $514 $1.37 1BD/1BA $803 $1.24 $803 $1.24 2BD/1BA $893 $0.89 $893 $0.89 TOTAL/AVG $765 $1.07 $765 $ Lofts on 6th 835 N 6th Ave. OWNER: Philip Lipman MANAGED BY: Bright Studio $765 $1.51 $765 $1.51 1BD/1BA $867 $1.30 $867 $1.30 2BD/1BA $1,020 $1.19 $1,020 $1.19 3BD/2BA $1,331 $1.11 $1,331 $1.11 TOTAL/AVG $871 $1.32 $871 $1.32 Saratoga 901 N 1st Ave. Tucson, AZ OWNER: Saratoga Apartments MANAGED BY: Owner 1 2BD/1BA $867 $1.00 $867 $1.00 TOTAL/AVG $867 $1.00 $867 $ The Spot on 5th 746 E 5th St. Tucson, AZ OWNER: Victor Silver MANAGED BY: Apex 1BD/1BA $705 $1.16 $705 $1.16 2BD/1BA $964 $1.24 $964 $1.24 3BD/2BA $1,471 $1.34 $1,471 $1.34 TOTAL/AVG $806 $1.19 $806 $ Drachman E Drachman St. OWNER: Drachman LLC MANAGED BY: Equilibrium Studio $429 $1.07 $429 $1.07 1BD/1BA $505 $0.90 $505 $0.90 2BD/1BA $857 $1.08 $857 $1.08 TOTAL/AVG $502 $1.00 $502 $ NORTHMARQ MULTIFAMILY

11 RENT COMPARABLES DETAILS 5 SITE N 7TH AVE APARTMENTS 11

12 MULTIFAMILY & MANUFACTURED HOUSING INVESTMENT SALES NorthMarq Multifamily Daniel Leibsohn SENIOR ASSOCIATE T C dleibsohn@northmarq.com NorthMarq Capital Alex Quenzler VICE PRESIDENT-PRODUCER T C aquenzler@northmarq.com James DuMars MANAGING DIRECTOR T C jdumars@northmarq.com Visit us online at northmarq.com Phoenix Office 3200 E. CAMELBACK ROAD, SUITE 253 PHOENIX, AZ