OLDE TOWN APARTMENTS 720 S. 5TH AVENUE, TUCSON, AZ OFFERING MEMORANDUM

Transcription

1 OLDE TOWN APARTMENTS 720 S. 5TH AVENUE, TUCSON, AZ OFFERING MEMORANDUM

2 Exclusively Listed by: NorthMarq Multifamily Daniel Leibsohn SENIOR ASSOCIATE T C dleibsohn@northmarq.com Ryan Boyle SENIOR ASSOCIATE T C rboyle@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 OFFERING Price $1,900,000 Price Per Unit $61,290 Terms Cash - Fee Simple SITE DESCRIPTION Apartment Community Olde Town Apartments Location 720 S. 5th Avenue, Tucson, AZ Total Units 31 Year Built 1961 Net Rentable Square Feet 15,150 Number of Buildings 3 Number of Stories 2 Sub-market Armory Park/Downtown Land Size 0.65 Density Units Per Acre Parking 40 spaces Laundry On-Site Laundry Room MECHANICAL Heating / Cooling Hot Water Electricity Water / Sewer CONSTRUCTION Style Foundation Framing Exterior Roof Parking Surface Individual Roof Mounted Evaporative Coolers Commercial Boiler Individual (Provided by TEP) Paid by Owner (City of Tucson) Garden Style Concrete Wood Frame Painted Brick Flat Asphalt PROPERTY TAXES Number of Parcels 1 Tax Parcel Number Property Tax $14,068 4 NORTHMARQ MULTIFAMILY

5 UNIT TYPE # OF UNITS % OF COMPLEX SQUARE FEET VACANT RENT PROPERTY SUMMARY RENT / SF TOTAL RENT Studio 7 23% $450 $1.00 $3,150 1BD/1BA 24 77% $550 $1.10 $13,200 TOTAL / AVERAGE % $527 $1.08 $16,350 INFORMATION AS OF: 10/22/2018 UNIT MIX BREAKDOWN Studio 25% 1BD/1BA 75% OLDE TOWN APARTMENTS 5

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7 AREA DESCRIPTION Olde Town apartments is located in the up-and-coming neighborhood of Armory Park in Tucson, Arizona. The asset is a prime, value-add opportunity that boasts several amenities to the growing rental population, many of whom are exceeding the median household income of $41,700 a year due to the robust inflow of new corporate jobs added to the downtown area. The asset has secured access, a pool, lush, garden landscaping, a laundry room, a gazebo, an office, and plenty of on-site parking to the east and west of the building. Less than a mile north of the property is downtown Tucson that offers residents easy access to the Tucson Museum of Art, Museum of Contemporary Art, Rialto Theatre, Fox Tucson, Theatre, Hotel Congress, and several award winning restaurants including Downtown Kitchen + Cocktails, Elvira s, Cafe Poca Cosa, El Charro, HUB, Diablo Burger, and Pueblo Vida. The opportunity exists for the new owner to convert the laundry room into a new unit. Upon completion of a complete interior and exterior renovation, a new owner can achieve rental premiums of $150/unit for studios and $275/unit for one bedrooms. DOWNTOWN TUCSON OLDE TOWN APARTMENTS OLDE TOWN APARTMENTS 7

8 Tucson Medical Center Banner University Medical Center Tucson JW Marriot Starr Pass Resort Pima Community College Tucson Downtown Convention Tucson Center University of Arizona El Con Center Randolf Golf Course Park Place Mall Carondelet St. Joseph s Hospital Starr Pass Country Club Saguaro National Park Sentenial Peak Park Santa Cruz River Park OLDE TOWN APARTMENTS Reid Park Zoo Southern Arizona VA Hospital Kino Sports Complex Davis-Monthan AFB Tucson Spectrum Mall Pima Air & Space Museum N 8 NORTHMARQ MULTIFAMILY Tucson International Airport

9 AREA HIGHLIGHTS OLDE TOWN 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. OLDE TOWN APARTMENTS 9

10 PRO FORMA OPERATIONS PRO FORMA OPERATING INCOME Monthly Scheduled Gross Rent $22,900 Annual Scheduled Gross Rent $274,800 Physical Vacancy 5.00% -$12,000 Economic Vacancy 4.00% -$10,992 Net Rental Income $251,808 RUBS $11,571 Laundry & Other Income $3,000 Gross Operating Income $266,379 PRO FORMA OPERATING EXPENSES PER UNIT Property Taxes $454 $14,068 Insurance $150 $4,650 Maintenance & Repairs $500 $15,500 Turnover $250 $7,750 Contract Services $150 $4,650 Utilities $1,182 $36,629 Payroll $516 $16,000 Management Fee 5.00%OF GOI $430 $13,319 Marketing $75 $2,325 Administrative Expenses $75 $2,325 Capital Reserve $300 $6,200 TOTAL OPERATING EXPENSES $123,416 Operating Cost Per Unit $3,981 Operating Cost Per Sq Ft $8.15 PRO FORMA OPERATING INCOME $142,963 UNIT TYPE UNITS SF NOTES RENTS New rents based on comparable properties post rennovation. PHYSICAL VACANCY Consistent with submarket performance. RUBS New RUBS program initiated $25 Studio; $35 1BED PROPERTY TAXES 2018 Annual property taxes quoted from the Pima County Treasurer. UTILITIES Increased 3% from adjusted T-12 operations. OPERATIONAL EXPENSES Based on industry standards of similar properties. MONTHLY RENT Studio $700 $4,900 1BD/1BA $750 $18,000 TOTAL/AVG $739 $22, NORTHMARQ MULTIFAMILY

11 RENT COMPARABLES NO. PROPERTY YEAR BUILT UNITS UNIT SIZE AVG. SF PHYSICAL OCCUPANCY RENT/ UNIT RENT/ UNIT MANAGED BY S Olde Town Apartments 720 S. 5th Avenue Tucson, AZ % $527 $1.08 $527 $1.08 Peach Properties 1 The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ % $910 $1.82 $910 $1.82 NorthStar 2 Junction at Iron Horse 504 E. 9th Street % $1,896 $1.66 $1,896 $1.66 Pierce Education 3 Don Martin Apartments 605 E. 9th Street % $884 $1.71 $884 $1.71 Bright 4 Coronado Hotel Apartments 402 E. 9th Street % $1,350 $3.56 $1,350 $3.56 Werth 5 Alamo 824 E. 10th Street Tucson, AZ % $1,116 $2.37 $1,116 $2.37 Pelican Average % $1,113 $1.84 $1,113 $1.84 OLDE TOWN APARTMENTS 11

12 Olde Town Apartments 720 S. 5th Avenue Tucson, AZ OWNER: Briles Family MANAGED BY: Peach Properties UNIT TYPE UNITS SF 12 NORTHMARQ MULTIFAMILY Studio $450 $1.00 $450 $1.00 1BD/1BA $550 $1.10 $550 $1.10 TOTAL/AVG $527 $1.08 $527 $1.08 Junction at Iron Horse 504 E. 9th Street OWNER: Pierce Education Properties LP MANAGED BY: Pierce Education Properties UNIT TYPE UNITS SF S 1BD/1BA $1,369 $1.97 $1,369 $1.97 2BD/2BA $1,738 $2.09 $1,738 $2.09 2BD/2BA $1,790 $2.05 $1,790 $2.05 3BD/3BA $2,340 $2.12 $2,340 $2.12 4BD/4BA $1,373 $1.00 $1,373 $1.00 4BD/4BA $2,836 $1.89 $2,836 $1.89 TOTAL/AVG $1,896 $1.66 $1,896 $1.66 Coronado Hotel Apartments 402 E. 9th Street OWNER: Coronado Hotel Apartments MANAGED BY: Werth Realty UNIT TYPE UNITS SF 2 Studio $1,350 $3.56 $1,350 $3.56 TOTAL/AVG $1,350 $3.56 $1,350 $ The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ OWNER: GR Capital Partners, LLP MANAGED BY: NorthStar UNIT TYPE UNITS SF Studio $770 $2.05 $770 $2.05 Studio $800 $1.91 $800 $1.91 Studio $825 $1.93 $825 $1.93 1BD/1BA $965 $1.78 $965 $1.78 1BD/1BA $1,015 $1.62 $1,015 $1.62 TOTAL/AVG $910 $1.82 $910 $1.82 Don Martin Apartments 605 E. 9th Street. OWNER: Phil Lipman MANAGED BY: Bright UNIT TYPE UNITS SF 1 Studio $775 $1.79 $775 $1.79 1BD/1BA $975 $1.64 $975 $1.64 2BD/1BA $1,600 $1.59 $1,600 $1.59 TOTAL/AVG $884 $1.71 $884 $1.71 Alamo 824 E. 10th Street Tucson, AZ OWNER: Pelican Company MANAGED BY: Pelican UNIT TYPE UNITS SF 3 Studio $800 $2.67 $800 $2.67 1BD/1BA $1,195 $2.33 $1,195 $2.33 TOTAL/AVG $1,116 $2.37 $1,116 $2.37 5

13 RENT COMPARABLES S Olde Town Apartments 720 S. 5th Avenue Tucson, AZ The Flats at Julian Drew 128 S. 5th Avenue Tucson, AZ Junction at Iron Horse 504 E. 9th Street 3 Don Martin Apartments 605 E. 9th Street. 4 Coronado Hotel Apartments 402 E. 9th Street N SITE 5 Alamo 824 E. 10th Street Tucson, AZ OLDE TOWN APARTMENTS 13

14 MULTIFAMILY & MANUFACTURED HOUSING INVESTMENT SALES NorthMarq Multifamily Daniel Leibsohn SENIOR ASSOCIATE T C dleibsohn@northmarq.com Ryan Boyle SENIOR ASSOCIATE T C rboyle@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