153 E. Clinton Street Gray (Macon), GA Apartment Units

Transcription

1 LEGACY PARK 153 E. Clinton Street Gray (Macon), GA Apartment Units

2 CONTACT INFORMATION ARA NEWMARK 6445 Powers Ferry Rd, Ste. 300 Atlanta, GA Dan Phelan T M Chad DeFoor defoor@aranewmark.com T M William Shippen shippen@aranewmark.com T M John Weber weber@aranewmark.com T M John Topping john.topping@aranewmark.com T M OFFER PROCESS Exclusive Representation ARA, A Newmark Company, has been exclusively retained to represent the Owner in a sale. All inquiries about the Offering or the Property should be directed to ARA Newmark Atlanta. Offering Process The Property is being offered on an All Cash basis to qualified purchasers. Prospective buyers will have the opportunity to visit the Property through scheduled tours with ARA Newmark. Offer Requirements Offers should be presented in the form of a non-binding Letter of Intent, and must include: 1. Pricing 2. Due Diligence and Closing Timeframe 3. Earnest Money Deposit 4. Description of Debt/Equity Structure 5. Qualifications to Close Offers should be delivered to the attention of Dan Phelan via . Due Diligence Information To access the due diligence information please visit the Property website at: arausa.listinglab.com/legacypark

3 EXECUTIVE SUMMARY ARA is pleased to present the exclusive listing of Legacy Park, a 70-unit apartment located in Gray, GA. The Property faces minimal direct competition and is near Macon and major employment centers, schools, and infrastructure. Legacy Park is currently stabilized but has potential to push rent through making capital improvements through renovation, addition of amenities and the opportunity to construct additional units on the undeveloped acre parcel. PROPERTY INFORMATION PROPERTY NAME Legacy Park PROPERTY ADDRESS 153 E. Clinton St, Gray (Jones County) GA UNITS 70 Units (100% Market Rate) YEAR BUILT 1985/2017 Partial Renovation INVESTMENT SUMMARY PRICE $4,500,000 PER UNIT $64,286 CAP RATE ON ACTUALS 6.76% TERMS All-Cash Diverse Economy Well balanced across several different industries with numerous additional projects planned, the MSA is positioned to continue to expand and grow. Upside Potential The lack of amenities, ample greenspace and the ability to deliver additional units to the undeveloped Acre parcel, creates an attractive value-add opportunity. Existing unit renovation also provides additional value-add potential. Military Presence Robins Air Force base is the largest logistics center in GA and the top employer in the CSA, generating a $2.87 billion economic impact on the state of Georgia. Sense of Community Better positioned than its competitor, the Property fills a need within the community for multifamily housing. Abundant Infrastructure Commuter friendly infrastructure abounds, connecting North GA to South GA and converging within the Macon MSA.

4 PROPERTY INFORMATION - UNIT MIX Market Rent Effective Rent Unit Type Units % Total Unit SF Per Mo. Per SF Per Mo. Per SF 1BD/1BA Flat 8 11% 540 $508 $0.94 $492 $0.91 1BD/1BA 2nd-Story 12 17% 540 $501 $0.93 $501 $0.93 2BD/1BA Flat 12 17% 736 $570 $0.77 $570 $0.77 2BD/1BA Garden 8 11% 675 $585 $0.87 $585 $0.87 2BD/1.5BA Townhome 20 29% 1,000 $579 $0.58 $579 $0.58 3BD/1.5BA Townhome 10 14% 1,176 $654 $0.56 $589 $0.50 Totals/Averages % 811 $567 $0.70 $556 $0.69 3BD/1.5B A 14% Unit Mix 1BD/1BA 29% Townhome vs Garden / Flat Townhome 43% Garden / Flat 57% 2BD/1BA 57%

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6 MARKET REPOSITION OPPORTUNITY CURRENT KITCHEN Additional NOI Enhancement Opportunities: Billback for Water PROPOSED RENOVATION Add Trash Fee - $5 Add Washer / Dryer Machines Implement LED Lights Program NEXT LEVEL OPPORTUNITIES REPLACE CABINET DOORS TILE BACKSPLASH MODERN FAUCETS ADD WASHER / DRYERS LIGHTING PACKAGE

7 OPPORTUNITY TO ADD PHASE II R3 ZONING ALLOWS 14 UNITS / ACRE Units Clubhouse / Fitness Center SITE Acreage: Zoning: Acres R3

8 ADD AMENITIES TO ATTRACT PRIME RENTER DEMOGRAPHIC PICNIC / GRILLING AREAS RESERVED COVERED PARKING GARAGE / STORAGE BUILDINGS CAR CARE CENTER

9 ADD AMENITIES TO ATTRACT PRIME RENTER DEMOGRAPHIC WALKING TRAIL WITH BENCHES PET PARK COMMUNITY PLAYGROUND MAIL / PACKAGE KIOSK

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11 PROPERTY DESCRIPTION Total Units 70 Units (100% Market Rate) SITE Net Rentable Area Average Unit Size Year Built 56,770 SF 811 SF 1985 / 2017 Partial Renovation Acreage Density (as-is) Zoning Acres 5.62 units per acre R3 (up to 14 Units/Acre) Number of Buildings County City Incorporation Parcel ID BUILDING DESCRIPTION PROPERTY TAXES 12 Residential Leasing Office Located in a one-bedroom unit (Unit #4, Bldg 2) Number of Floors Foundations Exterior Walls Windows Roofs W/D Connections Roofs 1 & 2-Stories, Garden and Townhome Units Poured Concrete Slab Wood frame with Hardi Plank and Brick siding Double-Pane in Aluminum Frame Pitched Wood Frame with Gables, Composition Asphalt Shingles All units have full-size W/D connections Wood Frame, Gabled Roofs with Composition Asphalt Shingles Jones County Gray (District 02 - county seat) G Fair Market Value $1,209, Millage Rate per thousand Assessment Ratio (Georgia) 40% HVAC Water Heater MECHANICAL/ELECTRICAL/PLUMBING UTILITY INFORMATION Individual Electric Central HVAC Units Individual Electric 50-Gallon Water Meter Master Meter (property pays 100%) Electrical Plumbing Supply Copper Wiring, amp electrical panels Copper Supply Lines with PVC Waste Lines Fire Protection Fire Wall Separation (Bldg 4 & 12) Gas W/D Connections Utility/Service Provider Paid By Electricity Georgia Power Resident Gas (Office / Amenity) N/A N/A Water/Sewer City of Gray Owner Trash City of Gray Owner Cable/Internet COX Cable Resident None Connections in each unit, residents provide machines

12 SITE Acreage: Density: Zoning: Acres 5.62 Units Per Acre R3

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16 MARKET OVERVIEW Gray, GA is the county seat of Jones County and a part of the Macon MSA, located 10 miles from downtown Macon. Macon is effectively the geographic center of Georgia and the state s fourth largest city. A city rich in history and culture, Macon is known for it s abundant historical sites, festivals, museums and musical heritage; the birthplace or hometown to the likes of The Allman Brothers Band, Little Richard and Otis Redding. The City serves as a midpoint between Atlanta and Savannah and hosts Robins Air Force Base to the south, generating a $2.87 billion economic impact on the state of Georgia. ECONOMY The economy is driven by Robins Air Force Base to the south, but also bolstered by the insurance, hospital, and education industries. Home to the likes of Geico, Navicent Health the second largest hospital in Georgia, the Macon-Bibb County Board of Education and Amazon is currently building a fulfillment center. Largely attributed to Robins Air Force Base, the aircraft industry maintains a local presence led by the Boeing Co. and Haeco. YKK Inc. A large city with a college town feel, Macon is home to several colleges and universities including Mercer, Middle Georgia State, Wesleyan and Macon State College. TOP MACON-BIBB COUNTY EMPLOYERS Medical Center of Central GA 6200 GEICO 5000 Bibb County Board of Education 3700 Coliseum Health System 1400 City of Macon 1142 Mercer University 900 Bibb County 780 YKK (USA) 750 Wal-Mart Super Stores 740 USPS 600 Georgia Farm Bureau 525 Graphic Packaging Corporation 520 The Boeing Company 500 IKON Office Solutions 500 First Quality 486 Armstron World Industries 454 IKON Financial Solutions 350 *Source Macon Economic Development Commission

17 ROBINS AIR FORCE BASE Robins Air Force Base is Georgia s largest industrial installation and is located in Warner Robins, sixteen miles south of Macon. It is home to more than fifty organizations, including the Warner Robins Air Logistics Center (WR-ALC), Headquarters Air Force Reserve, the 78th Air Base Wing, the 19th Air Refueling Group, 5th Combat Communications Group, 93rd Air Control Wing, and the Air National Guard s 116th Bomb Wing. The WR-ALC manages the C-5 Galaxy, the F-15 Eagle, the C-141B/C Starlifter, the C-130 Hercules, special operations forces aircraft, the E-8C Joint STARS, the U-2, air force vehicles, helicopters, and several key missile and avionics systems. It is an air force avionics center, the Air Force Small Arms Center, and a major location for the development of high technology and automated industry. Since 1958 center personnel have managed foreign military sales programs for thirty to seventy countries. The base is situated on 6,935 acres, with 2,200 acres of wetlands and acres of upland forest, which includes hardwoods and planted pines. Among the species of plants and animals on base are 400 plant species, 39 mammals, 110 birds, 60 fish, 34 reptiles and 26 amphibians, and 411 insects. In addition there are 58 archaeological sites, including 16 that are eligible for listing on the National Register of Historic Places. College courses are offered at the Robins Residence Center, a satellite campus of Macon State College. Robins AFB has the largest runway in Georgia and is capable of accommodating the world s largest aircraft, including the C-5B and NASA s space shuttle piggybacked on a Boeing 747. The replacement value of the base is $5.7 billion. TOP MACON EMPLOYERS

18 FINANCIAL ANALYSIS June 2018 T-12 June 2018 T-2 PRO FORMA INCOME monthly/unit monthly/unit monthly/unit (1) Rental Revenue $443,663 $528 $534,990 $637 $561,740 $669 OTHER INCOME annual/unit annual/unit annual/unit (2) Water Income , (3) Trash Income , Other Income 15, , , Total Other Income $15,710 $224 $1,890 $27 $49,383 $705 TOTAL INCOME $459,373 $6,562 $536,880 $7,670 $611,122 $8,730 Per Month $38,281 $44,740 $50,927 EXPENSES Jun T-12 Exp. per unit Jun T-12 Exp. per unit Pro Forma per unit (4) Payroll $64,371 $920 $64,371 $920 $66,500 $950 Administrative 5, , , Repairs & Maintenance 46, , , Contract Services 19, , , Utilites - Electric 11, , , Utilities - Trash 7, , , (5) Utilities - Water 38, , , Total Variable Expenses $193,072 $2,758 $193,072 $2,758 $153,989 $2,200 (6) Taxes (2018 Actuals) $22,710 $324 $22,710 $324 $22,710 $324 Insurance 17, , , Management Fee , % Total Expenses $232,854 $3,326 $232,854 $3,326 $224,327 $3,205 Capital Reserves 17, NET OPERATING INCOME $226,519 $3,236 $304,026 $4,343 $369,295 $5,276 PRICE $4,500,000 $64,286 $4,500,000 $64,286 Cap Rate 6.76% 8.21% Footnotes: (1) Property is 100% occupied with waiting list, Pro Forma assumes 5% rent increase over June T-2 (2) Property currently pays 100% of water bill, Pro Forma assumes a 95% billback is implemented (3) Pro Forma assumes a $5/mo Trash Fee is implemented (4) Current staffing includes one (1) manager and one (1) maintenance tech (5) Pro Forma assumes Property will pay for 5% of the total water bill, after tenant billback (6) Property taxes are based on 2018 fair market value and Jones County millage rate. Assessment ratio for Georgia is 40%.

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22 UNIT MIX / FLOOR PLANS UNIT MIX Unit Type Units % Total Unit SF Eff. Rent/Mo Eff. Rent/SF 1BD/1BA Flat 8 11% 540 $492 $0.91 1BD/1BA 2nd-Story 12 17% 540 $501 $0.93 2BD/1BA Flat 12 17% 736 $570 $0.77 2BD/1BA Garden 8 11% 675 $585 $0.87 2BD/1.5BA Townhome 20 29% 1,000 $579 $0.58 3BD/1.5BA Townhome 10 14% 1,176 $589 $0.50 Totals/Averages % 811 $556 $0.69 3BD/1.5B A 14% Unit Mix 1BD/1BA 29% Townhome 43% Townhome vs Garden / Flat 1 BEDROOM 1 BATH 540 SF 20 UNITS (28%) Garden / Flat 57% 2BD/1BA 57%

23 FLOOR PLANS 2 BEDROOM 1 BATH FLAT 736 SF 12 UNITS (17%) 2 BEDROOM 1 BATH GARDEN 675 SF 8 UNITS (11%)

24 FLOOR PLANS GROUND FLOOR 2ND FLOOR 2 BEDROOM 1.5 BATH TH 1,000 SF 20 UNITS (29%)

25 FLOOR PLANS GROUND FLOOR 2ND FLOOR 3 BEDROOM 1.5 BATH TH 1,176 SF 10 UNITS (14%)

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28 Dan Phelan T M John Weber weber@aranewmark.com T M William Shippen shippen@aranewmark.com T M John Topping, Jr. john.topping@aranewmark.com T M Chad DeFoor defoor@aranewmark.com T M