A 3-PROPERTY, 89-UNIT

Transcription

1 Midtown Portfolio A 3-PROPERTY, 89-UNIT BOUTIQUE ASSET PORTFOLIO CORE LOCATION MINUTES FROM SAN ANTONIO CBD For sale as portfolio or individual assets

2 PORTFOLIO OVERVIEW PORTFOLIO INVESTMENT HIGHLIGHTS Unique opportunity to purchase three multifamily communities in the heart of San Antonio s urban core, centrally located within a few miles of each other Irreplaceable locations within San Antonio s booming Midtown, the city s most dynamic and emerging submarkets - adjacent to San Antonio s CBD, the Broadway Corridor, the Pearl District, and the River Walk Great opportunity for scale: 89 units spread across three properties allow new owner to gain a substantial footprint in San Antonio s urban core as well as management efficiencies; can also be purchased individually Turn key opportunity current owner has done the heavy lifting, spending significant capital to address 100% of portfolio with extensive interior upgrades and capital expenditures improvement; provides investors with newer construction type product Major exterior and common area renovations include new landscaping and fencing, exterior paint, roofs, exterior stair and hand rails, lighting, six-panel steel doors, double hung energy efficient windows, etc. Unit interior upgrades include granite countertops, black appliance package, modern tile kitchen backsplash (Maverick Park only), vinyl plank flooring throughout, updated cabinet fronts and hardware, updated lighting and plumbing fixtures, two-inch blinds, etc. Properties were leased-up/stabilized within three months after delivery (Mar 18), providing a tremendous opportunity for new buyer to generate additional revenue by turning over the rent roll to the highest in place rental rate by unit type, which would gain a new owner $62,000+ in additional annual income across the portfolio, assuming a 5% vacancy factor University of the Other upgrade possibilities may include: addition of bike storage lockers, outdoor kitchen/entertainment space, community garden, etc. Incarnate Word The San Antonio Zoo PORTFOLIO LOCATION AERIAL Japanese Tea Garden Trinity University MONTE VISTA San Antonio Botanical Garden 281 ST. MARY S STRIP The DoSeum Recently revitalized half mile stretch of noteworthy bars, restaurants, and music venues, including Chisme, Paper Tiger, TBA, Limelight, Faust Tavern, La Botanica, and Cookhouse ERW ALK Brackenridge Park RIV San Antonio College Metropolitan Methodist Witte Museum Pearl Brewery is San Antonio s premier culinary and cultural destination, featuring some of the city s top restaurants including The Granary, Cured, Botika, Il Sogno Osteria, and Boiler House; 23-acre mixed-use center home to retail, dining, office space, the Culinary Institute of America, renowned Hotel Emma, weekly farmer s market, and live-music amiptheater Fort Sam Houston 343-acre park encompassing an 18-hole golf course, the San Antonio Zoo, Boranical Garden, Japanese Tea Gardens, Sunken Garden Theater, and Witte Museum; recently granted $21.2M in bonds for park revitalization projects BROADWAY CORRIDOR Broadway continues to transform into the quintessential cultural corridor of San Antonio, defined by historical landmarks, museums, city parks and has sprung some of the most popular restaurants, bars and retail The San Antonio Art Museum Baptist Medical Center K AL RW E RIV San Antonio CBD DIGNOWTY HILL Ranked #1 largest population increase from Jul 16 - July 17 (U.S. Census Bureau, 2018); employment base of 140,000+ jobs UTSA Hemisfair Park 281 Alamodome A 3-PROPERTY, 89-UNIT PORTFOLIO INVESTMENT OPPORTUNITY Midtown Portfolio

3 PORTFOLIO OVERVIEW PORTFOLIO AREA HIGHLIGHTS At the doorstep of downtown and characterized by The Broadway Corridor, River North, Pearl District, and the Museum Reach, Midtown is one of the most unique and thriving submarkets in San Antonio Residents are surrounded by some of the city s most popular restaurants and bars, including Paramour, Rosella s Coffee, The Luxury, VFW Post 76, Brooklynite, Burleson Yard, Alamo Brewery, and Augie s BBQ The Pearl District is home to some of the city s most renowned restaurants, plus features several retail shops, a live-music amphitheater, a weekly farmer s market, Southerleigh Brewery, and the top-rated Hotel Emma Residents enjoy easy access to the River North and Museum Reach portion of the River Walk, creating convenient access to the San Antonio Museum of Art, the Witte Museum, and the San Antonio Zoo; The Howard and The Patton are both within a mile of River Walk access near Pearl Brewery A recently passed bond package has set aside $42M for improvements to Broadway; these improvements aim to make the district more pedestrian and bicycle friendly As the Broadway Corridor continues to develop into a highly desirable living option just outside of the CBD, businesses and developers flock to the area, transforming the district into a true live-work-play destination Silver Ventures is adding two new multi-story office towers and parking garage spanning 3.12 acres at the corner of Broadway and Pearl Pkwy, creating 344,000 square feet of office space Grayson Heights, across the street from The Patton, will be a $5M, 60,000-square-foot mixed-use redevelopment featuring retail and office space Hixon Properties is building a six-story office building at 711 Broadway, just down the street from Maverick Park; the site will encompass 125,000 square feet of office space and 15,000 square feet of retail Credit Human is moving their headquarters across from the Pearl District on Broadway; the new 10-story, $112.5M office will house close to 500 employees GrayStreet Partners is planning a 20-story hotel and office tower on Broadway near the Pearl District; the company also plans to redevelop 23 acres of land it owns across the street from Pearl Brewery into a massive mixed-use project that would include 300,000 square feet of office space, a boutique hotel, and 100,000 square feet of retail, restaurants, and entertainment Employment base of 148,255 jobs in a five-mile radius of the properties (U.S. Census Bureau, Aug 18) Close proximity to some of San Antonio s largest employers, including Fort Sam Houston, the Methodist Hospital system, the Baptist Hospital system, USAA, Cullen/ Frost Bankers, and H-E-B Headquarters USAA expanding its downtown footprint and will add 1,500 new jobs downtown over the next four years New, 23-story Frost Tower under contruction, adding 460,000 square feet of new office to the CBD Minutes from Trinity University (2,400 enrolled), UTSA s downtown campus (10,000 enrolled), San Antonio College (21,000 enrolled), and University of Incarnate World (9,900 enrolled) Outdoor recreational opportunities abound Maverick Park, Brackenridge Park, Brackenridge Golf Course, Mahncke Park, and Hemisfair Park San Antonio MSA in-migration of 47,763 between July 16 and July 17 (U.S. Census Bureau, May 18) City of San Antonio had trailing 12 employment growth of 28,446, a 2.58% increase (USBLS, May 18) San Antonio ranked #14 among Best Places to Live in the U.S. (U.S. News & World Report, Apr 18) The Pearl District Future Broadway Corridor Brackenridge Park A 3-PROPERTY, 89-UNIT PORTFOLIO INVESTMENT OPPORTUNITY Midtown Portfolio

4 AREA HIGHLIGHTS UTSA DOWNTOWN CAMPUS Part of the University of Texas system; 18-acre campus serving more than one-third of UTSA s graduate students; campus expected to be home of new five-story, $40M school of data science 10 SAN ANTONIO COLLEGE Average semester enrollment of 21,000 credit students; largest single-campus community college in Texas with more than 120 Associate degree and certification programs offered N Geekdom Christus Santa Rosa Children s Hospital 35 ST. MARY S STRIP Future Frost Bank Tower SAN ANTONIO CBD Ranked #1 largest population increase from Jul 16 - July 17 (U.S. Census Bureau, 2018); employment base of 140,000+ jobs La Roca Cantina 8TH ST USAA Artisan on Alamo Distillery Alamo Ice House AVENUE B BROADWAY ST 9TH ST N. ALAMO ST Baptist Medical Center Future CPS Energy The Brooklynite Pete s Tako House Pink s Patio Maverick Park Ventura San Antonio Paramour Rosella Coffee Company E. JONES AVE Central Catholic High School N. ST MARY S ST The Luxury Riverwalk San Antonio Museum of Art Metropolitan Methodist Hospital PEARL DISTRICT Pearl Brewery is San Antonio s premier culinary and cultural destination, featuring some of the city s top restaurants including The Granary, Cured, Botika, Il Sogno Osteria, and Boiler House; 23-acre mixed-use center home to retail, dining, office space, the Culinary Institute of America, renowned Hotel Emma, weekly farmer s market, and live-music amiptheater Recently revitalized half mile stretch of noteworthy bars, restaurants, and music venues, including Chisme, Paper Tiger, TBA, Limelight, Faust Tavern, La Botanica, and Cookhouse 37 BROADWAY CORRIDOR Broadway continues to transform into the quintessential cultural corridor of San Antonio, defined by historical landmarks, museums, city parks and has sprung some of the most popular restaurants, bars and retail 0.7 miles Future Frost Bank Tower River North Future Silver Ventures Broadway Towers Paramour A 3-PROPERTY, 89-UNIT PORTFOLIO INVESTMENT OPPORTUNITY Midtown Portfolio

5 THE HOWARD PROPERTY DETAILS SITE INFORMATION Address 235 Howard St, San Antonio, TX Number of Units 70 Year Built 1968 Land Size 1.64 acres (42.68 units/acre) NRA 51,070± SF Occupancy 94.3% (as of Sep 18) MECHANICAL SYSTEMS Electrical Individually metered (resident pays) HVAC Individual climate controlled units Hot Water Master-metered boiler system (resident pays) Water/Sewer CONSTRUCTION Style Garden Foundation Reinforced concrete slabs Exterior Hardi-plank and brick Roof Flat Floor Covering Vinyl plank Paving Concrete Wiring / Piping Pigtailed / Galvanized copper PARKING Covered Spaces 37 Surface Spaces 36 Total Spaces 76 (including 3 handicap) PROFORMA INCOME TOTAL PER UNIT GROSS SCHEDULED RENT 1 $738,312 $10,547 Less: (Gain) / Loss-to-Lease 53, GROSS POTENTIAL INCOME $684,784 $9,783 Less: Vacancy 36, TOTAL RENTAL INCOME $647,869 $9,255 Plus: RUBS Income 2 13, Plus: Other Income 2 30, TOTAL OTHER INCOME 44, EFFECTIVE GROSS INCOME $692,085 $9,887 EXPENSES TOTAL PER UNIT Repairs and Maintenance $45,500 $650 Payroll 70,000 1,000 Administrative 10, Marketing 7, Utilities 3 36, TOTAL VARIABLE EXPENSES $169,520 $2,422 Taxes 4 146,210 2,089 Insurance 14, Management Fee 27, TOTAL OPERATING EXPENSES $357,413 $5,106 Plus: Capital Reserves 5 21, TOTAL EXPENSES $378,413 $5,406 NET OPERATING INCOME $313,672 $4, Gross Scheduled Rent based on in-place market rents as of 7/6/18 rent roll 2. RUBS & Other Income grown 3% from Jul 18 T12 Actuals 3. Adjusted Utilities grown 3% from Jul 18 T12 Actuals 4. Taxes based off of the 2018 mill rate of Numbers do not reflect actual expense UNIT TYPE # OF UNITS SIZE (SF) MKT RENT/UNIT MKT RENT/SF EFFICIENCY (EFF) $789 $1.43 1BR/BA (A1) $810 $1.35 1BR/BA (A2) $883 $1.16 2BR/1BA (B1) $935 $1.09 2BR/1BA (B2) $1,029 $1.10 AVG/TOTAL $879 $1.20 *Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units. INTERIOR AND COMMUNITY FEATURES Studio, one-, and two-bedroom floorplans, ideal for young professionals who dominate the tenancy Well-maintained, landscaped courtyard Modern kitchens with granite countertops, black appliances, wood cabinetry, brushed nickel hardware, and gooseneck faucets Vinyl plank flooring throughout Covered parking available THE HOWARD A 70-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY

6 MAVERICK PARK PROPERTY DETAILS SITE INFORMATION Address 319 E. Jones Ave, San Antonio, TX Number of Units 10 Year Built 1940 Land Size NRA 0.09 acres ( units/acre) 5,120± SF Occupancy 100% (as of Aug 18) Electrical HVAC Hot Water Water/Sewer Style Foundation Exterior Roof Floor Covering MECHANICAL SYSTEMS Individually metered (resident pays) Individual climate controlled units CONSTRUCTION Garden Reinforced concrete slabs Stucco Flat Vinyl plank INTERIOR AND COMMUNITY FEATURES Studio floorplans, ideal for young professionals who dominate the tenancy Modern kitchens with granite countertops, tile blacksplash*, black appliances, wood cabinetry, and brushed nickel hardware Vinyl plank flooring throughout Located directly off Broadway, walking distance to River Walk, and across the street from Maverick Park *in select units PROFORMA INCOME TOTAL PER UNIT GROSS SCHEDULED RENT 1 $97,440 $9,744 Less: (Gain) / Loss-to-Lease 0 0 GROSS POTENTIAL INCOME $97,440 $9,744 Less: Vacancy 4, TOTAL RENTAL INCOME $92,568 $9,257 Plus: RUBS Income Plus: Other Income 2 5, TOTAL OTHER INCOME 5, EFFECTIVE GROSS INCOME $98,381 $9,838 EXPENSES TOTAL PER UNIT Repairs and Maintenance $6,500 $650 Administrative 1, Marketing 1, Utilities 3 2, TOTAL VARIABLE EXPENSES $11,917 $1,192 Taxes 4 23,879 2,388 Insurance 2, Management Fee 3, TOTAL OPERATING EXPENSES $42,231 $4,223 Plus: Capital Reserves 5 3, TOTAL EXPENSES $45,231 $4,523 NET OPERATING INCOME $53,150 $5, Gross Scheduled Rent based on in-place market rents as of 7/1/18 rent roll, grown 1.50% from the Unit Mix 2. RUBS & Other Income grown 3% from Jul 18 T12 Actuals 3. Adjusted Utilities grown 3% from Jul 18 T12 Actuals 4. Taxes based off of the 2018 mill rate of Numbers do not reflect actual expense UNIT TYPE # OF UNITS SIZE (SF) MKT RENT/UNIT MKT RENT/SF EFFICIENCY (A) $809 $1.41 EFFICIENCY (B) $799 $1.58 EFFICIENCY (C) $799 $1.58 AVG/TOTAL $800 $1.56 *Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units. MAVERICK PARK A 10-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY

7 THE PATTON PROPERTY DETAILS SITE INFORMATION Address 1314 E. Grayson St, San Antonio, TX Number of Units 9 Year Built 1968 Land Size 0.20 acres (45 units/acre) NRA 5,310± SF Occupancy 100% (as of Jul 18) MECHANICAL SYSTEMS Electrical Individually metered (resident pays) HVAC Individual climate controlled units Hot Water Water/Sewer CONSTRUCTION Style Garden Foundation Reinforced concrete slabs Exterior Hardi-plank and stone Roof Flat Floor Covering Vinyl plank Paving Asphalt PARKING Covered Spaces 6 Surface Spaces 3 Total Spaces 9 INTERIOR AND COMMUNITY FEATURES Studio floorplans, ideal for young professionals who dominate the tenancy Modern kitchens with granite countertops, black appliances, painted wood cabinetry, and brushed nickel hardware Vinyl plank flooring throughout Covered parking available Less than a mile to the Pearl District PROFORMA INCOME TOTAL PER UNIT GROSS SCHEDULED RENT 1 $86,427 $9,603 Less: (Gain) / Loss-to-Lease 0 0 GROSS POTENTIAL INCOME $86,427 $9,603 Less: Vacancy 4, TOTAL RENTAL INCOME $82,105 $9,123 Plus: RUBS Income Plus: Other Income 2 4, TOTAL OTHER INCOME 4, EFFECTIVE GROSS INCOME $86,254 $9,584 EXPENSES TOTAL PER UNIT Repairs and Maintenance $5,850 $650 Administrative 1, Marketing Utilities 3 4, TOTAL VARIABLE EXPENSES $12,832 $1,426 Taxes 4 20,048 2,228 Insurance 2, Management Fee 3, TOTAL OPERATING EXPENSES $38,580 $4,287 Plus: Capital Reserves 5 2, TOTAL EXPENSES $41,280 $4,587 NET OPERATING INCOME $44,974 $4, Gross Scheduled Rent based on in-place market rents as of 7/1/18 rent roll, grown 2.00% from the Unit Mix 2. RUBS & Other Income grown 3% from Jul 18 T12 Actuals 3. Adjusted Utilities grown 3% from Jul 18 T12 Actuals 4. Taxes based off of the 2018 mill rate of Numbers do not reflect actual expense UNIT TYPE # OF UNITS SIZE (SF) MKT RENT/UNIT MKT RENT/SF EFFICIENCY (EFF) $739 $1.64 1BR/BA (A1) $769 $1.24 2BR/1BA (B1) $999 $1.16 AVG/TOTAL $785 $1.33 *Owner and Broker make no representation as to the actual square footage of any units. Prospective purchasers are encouraged to independently confirm the measurement of all units. THE PATTON A 9-UNIT MULTIHOUSING INVESTMENT OPPORTUNITY

8 M51 Additional information for Midtown Portfolio is available on our website at: CONTACTS: Matt Michelson DEBT & EQUITY: Matt Greer James Young Patrick Short Matthew Day Central Texas: 901 S. MoPac Expressway, Barton Oaks Plaza II, Suite 275, Austin, TX T This information has been derived from sources deemed reliable. However, it is subject to errors, omissions, price change and/or withdrawal, and no warranty is made as to the accuracy. Further, no warranties or representation shall be made by ARA, A Newmark Company (ARA Newmark) and/or its agents, representatives or affiliates regarding oral statements which have been made in the discussion of the above property. This presentation, prepared by ARA Newmark was sent to the recipient under the assumption that s/ he is a buying principal. Any potential purchaser is advised that s/ he should either have the abstract covering the real estate which is the subject of the contract examined by an attorney of his/her selection, or be furnished a policy of title insurance. Do not contact the Property.