RIVERSIDE APARTMENTS 400 EAST RIVERSIDE DRIVE ST. GEORGE, UTAH 84790

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1 RIVERSIDE APARTMENTS 400 EAST RIVERSIDE DRIVE ST. GEORGE, UTAH PREPARED BY MIKE CARROLL DIANE TAYLOR

2 RIVERSIDE APARTMENTS 148 Units 400 East Riverside Drive St. George, Utah - Value-Added opportunity - History of high occupancy - New major airport completed and operating in St. George - Owned for over 10 years - 90 minutes to Las Vegas Prepared by: Mike Carroll mcarroll@comre.com Diane Taylor dtaylor@comre.com 2017 Commerce Real Estate Solutions. This statement, with the information it contains, is given with the understanding that all negotiations relating to the purchase, renting, or leasing of the property described above shall be conducted through this office. No warranty or representation, express or implied, is made as to the accuracy of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals. Some aerial photography by DigitalGlobe or Aerials Express. (project path: G:\1 - Projects\Carroll, M\3 - Packages\RiversideApts_StGeorge\ RiversideApts_StGeorge2016.indd) RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE

3 PROPERTY OVERVIEW Constructed in 1986, Riverside is a 148-unit multifamily community made up of one and two bedroom apartments offered with an attractive amenities package, making it ideally suited for the area s resident profile. The property includes twelve, two-story buildings and a leasing office/clubhouse. Buildings are wood frame construction with pitched roofs and composite wood exteriors. For photo gallery see: AREA LOCATION Commercial real estate in Washington County continues to show growth across the board. The St. George Metro area is popping up on the national radar and quickly climbing up the rankings: #2 in job growth, #11 Best Small Places For Business, 3.2% Unemployment and #7 Fastest Growing Micropolitan Areas in the U.S. and these highly publicized statistics are fueling that growth. St. George is 300 miles south of Salt Lake City and 120 miles north of Las Vegas. Riverside is well located on the southern end of St. George. Residents benefit from close proximity to the 1-15 freeway with easy access to all of St. George and surrounding areas. The property is located along a SunTran bus route on Riverside Drive with bus stops near the property. In Washington County, nearly 32% of households are renters. For St. George, about 37% of households are renters. The city of St. George accounts for 52% of the households in Washington County, but has 59% of all renter households. St. George, Utah offers award winning spas, championship golf courses, a rich history of art and culture and a variety of outdoor activities. SURROUNDING PROPERTY North - Two-story commercial building and (across Riverside Drive) a condominium community; East - Vacant natural land with a paved walking trail near the Virgin River; South - Commercial and medical office buildings; West - (Across Riverside Drive) several light industrial, office, and retail buildings and a new office building. MALLS Red Cliffs Mall is located approximately three miles northeast of the property and is a regional mall with over 50 stores including JC Penny, Sears and Dillard s. St. George also has an outlet mall that is located approximately two and a half miles northeast of the property on This mall is considered a regional attraction and features stores like Nike, Levi s, OshKosh B Gosh, Eddie Bauer, Ralph Lauren, and many more. Along 1-15, just a few minutes north of the property, residents can shop all the major big box retailers including Best Buy, Target, Wal-Mart, Lowe s, Home Depot, Costco and Old Navy. INTERIOR AMENITIES Washer/Dryer Connections* Dishwashers Walk-in Closets* Additional Storage* Balconies or Patios* EXTERIOR AMENITIES Swimming Pool Heated Jacuzzi Clubhouse Playground Modern Central Laundry Basketball Area * In larger 1-bedroom and all 2-bedroom plans RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 3

4 CURRENT OCCUPANCY RATES Occupancy rates in modern apartment projects are currently high. The rental survey completed for this report surveyed the most modern apartment projects in the area. Occupancy levels at competing projects are as follows: Ocupancy at Competing Projects Name No. of Units Units Vacant Occupancy % Falls at Mesa Point % Oasis Palms % Puerta Del Sol % Sunset Springs % Fountain Heights % Riverside % Rincon Del Sol % Mesa Villa % The average vacancy rate found at competing projects is about 2% RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 4

5 Riverside Apartments 400 East Riverside Drive St. George, Utah January thru December 2016 INCOME Rental Income $1,243,788 Laundry $3,900 Cable $61,177 Late Fees TOTAL INCOME $1,313,519 EXPENSES Administrative $21,537 Payroll / Management $140,940 Utilities $126,247 Repairs and Maintenance $82,624 Grounds & Exterminating $32,307 Pool Maintenance $5,704 Property Taxes (2016) $46,579 Insurance $16,566 Reserves $37,000 TOTAL EXPENSES 38.79% $509,505 Net Operating Income $804,014 Asking Price: $14,000,000 CAP Rate: 5.74% RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 5

6 Riverside Apartments 400 East Riverside Drive St. George, Utah Jan 2015 thru Dec 2015 INCOME Rental Income $1,133,622 Webb/Vending $3,321 Cable $59,369 Late Fees $4,875 TOTAL INCOME $1,201,187 EXPENSES Administrative $13,988 Payroll / Management $110,504 Utilities $123,461 Repairs and Maintenance $112,570 Grounds & Exterminating $26,421 Pool Maintenance $5,555 Property Taxes (2014) $40,054 Insurance $14,640 Reserves ($250/per unit) $37,000 TOTAL EXPENSES 40.31% $484,193 Net Operating Income $716,994 RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 6

7 Riverside Apartments 400 East Riverside Drive St. George, Utah Jan 2014 thru Dec 2014 INCOME Rental Income $1,037,840 Webb/Vending $3,425 Cable $56,684 Late Fees $4,403 TOTAL INCOME $1,102,352 EXPENSES Administrative $11,458 Payroll / Management $111,415 Utilities $119,978 Repairs and Maintenance $91,763 Grounds & Exterminating $33,836 Pool Maintenance $7,473 Property Taxes (2014) $37,415 Insurance $14,033 Reserves ($250/per unit) $37,000 TOTAL EXPENSES 44.81% $493,998 Net Operating Income $608,354 RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 7

8 RIVERSIDE APARTMENTS 400 East Riverside Drive St. George, Utah UNIT MIX AND RENT SCHEDULE UNITS TYPE UNIT SF TOTAL SF MARKET RENT MONTHLY MARKET RENT ANNUAL MARKET RENT RENT/ SF 40 1 bed / 1 bath ,800 $680 $27,200 $326,400 $ bed / 1 bath ,112 $760 $18,240 $218,880 $ bed / 2 bath ,912 $840 $70,560 $846,720 $ Average/Totals ,824 $784 $116,000 $1,392,000 $1.26 Property Summary: Investment Summary: Number of Units: 148 Year Constructed: 1986 Price: $14,000,000 Price/Unit: $94,595 Type of Buildings: Parking: Metering: HVAC: Hot Water: Roofs: Exterior: 12 two-story, garden style buildings and one Clubhouse Asphalt paving All electric-individual Water -master Individual units Individual units Pitched-Composition Shingles Wood frame with composite/ wood exteriors Price/Square Foot: $ CAP Rate: 5.74% Note: Next rent increase scheduled for March, 2017 Acreage of Site: 6.54 Density: units/acre RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 8

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11 FLOORPLANS Jr. 1 Bedroom RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 11

12 PROPERTY PHOTOS RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 12

13 PROPERTY PHOTOS (CONT D) RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 13

14 PROPERTY PHOTOS (CONT D) RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 14

15 LOCATION MAP RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 15

16 LOCATION MAP RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 16

17 LOCATION MAP RIVERSIDE APARTMENTS CUSHMAN & WAKEFIELD COMMERCE 17

18 MIKE CARROLL Senior Director - Investment Properties (801) mcarroll@comre.com DIANE TAYLOR Director - Investment Properties (801) dtaylor@comre.com CUSHMAN & WAKEFIELD COMMERCE 170 South Main Street, Suite 1600 Salt Lake City, Utah