1518 Willow Avenue Elkins Park, PA. Elkins Park Apartments Six Apartment Units. Offering Memorandum

Transcription

1 1518 Willow Avenue Elkins Park, PA Elkins Park Apartments Six Apartment Units Offering Memorandum

2 The Investment Sales Division of Avison Young extends to qualified investors the opportunity to purchase 1518 Willow Avenue in Elkins Park, PA. The property consists of six apartment units currently 100% occupied with a strong rental history due to the property s location, just outside the Philadelphia City Limits in the Cheltenham School District. Investment Highlights This offering represents an outstanding investment opportunity for many compelling reasons: Low Turnover Rate The average length of occupancy among current renters is over 6 years. Low Capital Needs The current owner has implemented a continuous capital campaign over its 20+ year ownership period including the building s HVAC systems, roof, and siding leaving the future owner with little capital expenditures needed in coming years. Limited Supply and Heavy Demand Competing apartments within the Elkins Park have a combined vacancy rate of only 2.7% according to CoStar. This has historically been a tight rental market because of the relatively inexpensive rents in the area, easy access to transportation routes and superior schools to neighboring districts. PROPERTY SUMMARY Address: County: Township: Property Type: Utility Reimbursements: Church Rd W Cheltenham Ave 1518 Willow Avenue Elkins Park, PA Montgomery Cheltenham Six Unit Apartment Building 1 Studio 3 Two Bed/One Bath 2 Three Bed/One Bath Owner pays water/sewer only. Tenants pay electric and gas/heat cooking. Glenside Keswick Theatre Glenside Station Jenkintown/Wyncote Station Noble Station Rydal Station Investment in the Neighborhood The complex is proximate to the Temple Tyler School of Art, which is scheduled to be redeveloped into a community center, and the Elkins Estate, a 42-acre mansion designed by Horace Trumbauer. Room to Raise Rents The current average in-place rent is $0.92 PSF, which is much below the perceived market-rate rent of $1.35 PSF. Most tenants are long-term occupants that have not received rental rate increases, offering upside to the future owner. The increase in rent is supported by the apartment rent comparables included in this package. Excellent Returns At an offering price of $390,000 or $65,000 per unit, the cash returns with market rate financing average 13.4% annually over a ten-year hold not accounting for principal payment reduction. Wyndmoor Philadelphia County Washington Ln Elkins Park Elkins Park Station Melrose Park Station Township Line Rd Partnership. Performance. Page 1

3 Partnership. Performance. Page 2

4 Floor Plans APARTMENT SF APARTMENT 2 1,120 SF Partnership. Performance. Page 10

5 Floor Plans APARTMENT SF APARTMENT SF Partnership. Performance. Page 11

6 Floor Plans APARTMENT 5 - FIRST FLOOR 915 SF APARTMENT 5 - SECOND FLOOR 553 SF Partnership. Performance. Page 12

7 OFFERING PROCEDURE 1518 Willow Avenue is being offered for sale at a price of $390,000 to qualified real estate investment entities. Interested investors should address all communications, inquiries, and requests for information to Avison Young. All inspections of the property must be arranged through Avison Young with appropriate notice. Investors intending to purchase the property should put their proposed terms in Letter of Intent form and deliver to Avison Young by . The Seller will evaluate all offers based on factors such as economics, timing, terms, and the bidder s track record in closing similar transactions. Neither Seller, nor Avison Young, nor any of their respective employees, agents, or principals, has made or will make any presentation or warranties, expressed or implied, as the accuracy or completeness of this Offering Memorandum or contents. The analysis and validation of the information contained in this package are entirely the responsibility of each prospective investor. Capital Markets/Investment Real Estate Brokerage: Adam Gillespie, Principal D C adam.gillespie@avisonyoung.com avisonyoung.com 2018 Avison Young - Philadelphia LLC. All rights reserved. The information contained herein is believed to be true; it has not been verified and as such, cannot be warranted nor form any part of any future contract.