Sofonias Astatke - Managing Partner/Broker

Transcription

1 WESTVIEW APARTMENTS 219 W. Ft. Lowell, Tucson AZ Presented By: Equilibrium REALTY Nick Tomko - Listing Agent Direct: ntomko@equilibriumprops.com Sofonias Astatke - Managing Partner/Broker sofonias@equilibriumrealty.com Vanessa Santucci - Managing Director Vanessa@equilibriumprops.com OFFERING MEMORANDUM DECEMBER 2017

2 TABLE OF CONTENTS Property Information... pg. 3 Property Photos... pg. 4 The Opportunity... pg. 5 Area Description... pg. 6 Property Description... pg. 7 Floorplan... pg. 8 Financial Analysis... pg. 9 Sales Comparables... pg. 10 Sales Comparables Map... pg. 11 Rent Comparables... pg. 12 Rent Comparables Map... pg. 13 Location Map... pg. 14 Bird s Eye View... pg. 15 Parcel Map... pg. 16 Market Overview... pg. 17 WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 2

3 PROPERTY INFORMATION Property OFFERING WESTVIEW APARTMENTS 219 W. Ft. Lowell, Tucson AZ Property Taxes Number of Parcels 1 Tax Parcel Numbers Assessment $8, Mechanical List Price SITE DESCRIPTION Unpriced Heating/Cooling Electricity Water / Sewer Individual Units - Paid by Tenant Provided by Tucson Electric Power Partially Reimbursed by Tenant Provided by City of Tucson Total Units 38 Year Built 1985 Net Rentable SQFT 18,240 Number of Buildings 2 Number of Stories 2 Land Size 1 Acres Density 38 Units per Acre Laundry On-site Laundry Construction Foundation Framing Exterior Roof Parking Structure Concrete Wood Stucco Flat Asphalt WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 3

4 PROPERTY Photos WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 4

5 The Opportunity The WESTVIEW APARTMENTS Opportunity Having been purchased out of foreclosure in 2012, Westview Apartments has undergone a tremendous amount of renovation over the past several years. This has including replacement of all plumbing, roof replacement, exterior trim painting, resurfacing of the entire parking lot and interior unit replacements including all flooring. During this period the property performance and occupancy (now currently consistently above 90%) has improved tremendously. There is opportunity still however to do a whole lot more. Current asking rents are significantly below market and there is opportunity to increase rents and/or reduce monthly concessions upon lease renewal for a vast majority of existing residents. Furthermore, there is possibility of undergoing unit upgrades (kitchen and bath) in order to possibly garner a higher rent than current market rates for One Bedroom Units in the area ($550/month). WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 5

6 AREA DESCRIPTION WESTVIEW APARTMENTS AREA DESCRIPTION Westview Apartments is located at 219 W. Ft Lowell, Tucson AZ The property is situated on Ft. Lowell in between Stone and Oracle Avenues. Stone being the main thoroughfare leading directly into downtown roughly 3 miles to the south. The nearest freeway access is less than 2 miles to the west, the Miracle Mile on-ramp onto Interstate 10. The property is slightly south and within walking distance of both Amphitheater high school and middle school and roughly 3 miles northwest of the University of Arizona as well. A little over one mile north of the property is the Tucson Mall and the Oracle Wetmore Shopping Center. The Tucson Mall is anchored by Macy s, JCPenny, and Dillard s while the Oracle Wetmore Shopping Center is anchored by Nordstrom Rack, PetSmart, and Home Depot. Convenient grocery shopping for tenants can be found at Fry s, one mile to the east on the northeast corner of Roger Road and 1st Avenue. A Target anchored shopping center is within walking distance to the north west of the property at Oracle Road and Roger Road. WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 6

7 Property DESCRIPTION WESTVIEW APARTMENTS Property DESCRIPTION Westview Apartments is a two story apartment community built in 1985 comprising 38 all one bedroom rental units. Construction is of wood frame stucco, with flat roofs. Heating and cooling is provided by individual roof mounted air conditioning units. The utility costs associated with heating and cooling are the responsibility of the tenant. The property is individuallymetered for electricity, and the costs associated with usage inside the dwelling units are the responsibility of the tenant. Hot water is provided by individual water heaters. The cost of water, sewer charges, and trash collection is partially reimbursed by the tenants who pay $20 per month. Common amenities include a swimming pool with new pool furniture, and a shaded pavilion. The property also has a laundry facility, outdoor barbeques and picnic areas, and ample parking. WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 7

8 Floor Plan WESTVIEW APARTMENTS FLOOR PLAN CLOSET LINEN DINING AREA ENTRY BEDROOM CLOSET KITCHEN LIVING ROOM BEDS: 1 BATHS: 1 APPROX. Size: 500 SQFT. WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 8

9 Financial Analysis Operations - Annual ProForma & Latest 12 Months (Nov Oct 2017) Pro Forma LTM Monthly Scheduled Gross Income $20,900 $17,100 Annual Scheduled Gross Income $250,800 $205,200 Physical Vacancy ( ProForma 6%) ($15,048) ($22,950) Economic Vacancy (concessions, loss to lease, bad debt etc ProForma 3%) ($7,524) ($28,420) Net Rental Income $228,228 $153,830 Other Income (Laundry, Late Fees etc ) $10,000 $11,339 Rubs $8,400 $2,611 Total Operating Income $246,628 $167,780 Operating Expenses Per Unit Pro Forma LTM Property Taxes (2017) $224 $8,518 $8,518 Insurance $133 $5,040 $5,040 Maintenance & Repairs/Turnover/Supply $395 $15,000 $14,746 Utilities $789 $30,000 $30,223 Payroll $632 $24,000 $41,462 Management Fee (ProForma 4%) $260 $9,865 $10,245 Administrative Expense ($100/unit Pro Forma) $100 $3,800 $5,529 Advertising ($50/unit Pro Forma) $50 $1,900 $506 Capital Reserves $250 $9,500 $0 Total Operating Expenses $2,832 $107,623 $116,269 Total Operating Expense per Square Foot $5.90 NET OPERATING INCOME $139,005 $51,510 WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 9

10 Sales Comparables WESTVIEW APARTMENTS Comparable Sales Report Property Information Sales Data Unit Mix Breakdown Property Units Built Rentable SQFT Price Price Per Unit Price Per SQ FT Sale Date % Studio % 1BR % 2BR % 3BR Wildflower Apts 2850 N.Alvernon Way Tucson AZ Villa Delano Apts 123 W Delano St. Tucson AZ Vista de la Luna Apts 4015 E Monte Vista Dr. Tucson AZ Peachtree Apts 840 N. Alvernon Way Tucson AZ Eastpointe 8477 E Broadway Blvd Tucson AZ ,020 $1,250,000 $44,643 $78.03 Sep-17 0% 71% 29% 0% ,096 $1,850,000 $57,813 $65.85 Nov-17 0% 0% 100% 0% ,600 $1,175,000 $36,719 $86.40 Nov % 0% 0% 0% ,222 $1,725,000 $41,071 $55.25 Aug-17 0% 43% 14% 0% ,216 $2,100,000 $42,857 $98.98 Jun-17 98% 0% 2% 0% Averages ,031 $1,620,000 $44,262 $73.53 Westview Apts. 219 W Ft. Lowell Tucson AZ ,240 0% 100% 0% 0% WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 10

11 Sales Comparables Map WESTVIEW APARTMENTS Comparable Sales Map WESTVIEW APTs. Villa Delano APts. Vista De la Luna Apts. WILDFLOWER APTS PEACHTREE APTS EASTPOINTE WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 11

12 Rent Comparables WESTVIEW APARTMENTS Comparable RENTAL Report Studios One Bedroom 2 Bedroom Property Built Units Units SQ FT Rent Rent Per SQ FT Units SQ FT Rent RentPer SQ FT Units SQ FT Rent Rent/ SQ FT Alegria 520 W. Prince Rd. Tucson AZ Casa Marin 438 E. Prince Rd. Tucson AZ Palms on Prince 208. E. Prince Rd. Tucson AZ Glennstone Village 2835 N. Stone Ave. Tucson AZ $505 $ $570 $ $415 $ $470 $ $595 $ $1.10 Total/Averages $415 $ $499 $ $595 $1.32 Westview Apts 219 W. Ft Lowell Tucson AZ $550 $1.15 WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 12

13 Rental Comparables Map WESTVIEW APARTMENTS Comparable Rental Map ALEGRIA Palms on Prince CASA MARIN WestView APts. GLENnSTONE VILLAGE WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 13

14 Locations Map WESTVIEW APARTMENTS Locations Map The Tucson Mall WestView APts. DOWNTOWN TUCSON WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 14

15 Parcel Map WESTVIEW APARTMENTS Parcel Map WESTVIEW APTs. WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 16

16 Market Overview A Tucson Overview The Tucson metro statistical area is made up of Pima County and is the second largest county in the state of Arizona at 9,184 square miles. Population in Pima County checks in at just under 1 million, with the figure up more than 16 percent from ten years earlier. Looking ahead, the local population in the Tucson metro area is expected to increase by percent per year between now and 2030, which should grow the local population by nearly 300,000 residents in that time. The city of Tucson (population 520,000) is by far the largest individual city in Pima County, with more than half of the county s residents living within the city limits. Other cities in the metro include: Catalina Foothills (population 51,000), Oro Valley (population 41,000), Marana (population 35,000), Sahuarita (population 25,000) and Green Valley (population 21,000). The Employment Market The Tucson metro area includes more than 358,000 employees, up from fewer than 250,000 workers in 1990 and 345,000 employees in The Tucson market was slow to pull out of the recession, with employment bottoming in the middle of 2011, about one year later in the cycle than most metro areas and the U.S. as a whole. Since bottoming, employers have added back roughly all of the jobs lost during the recession. The government accounts for the largest single employment sector in the Tucson metro area, due in part to traditional government functions at the state and local levels, as well as the significant presence of the University of Arizona, which employs 10,300 workers and has an annual enrollment of more than 30,000 undergraduate students and a graduate enrollment of approximately 9,000 students. The university provides a consistent source of renter demand for apartments from students and faculty. The professional and business services sector is also one of the largest employment sectors in Tucson, with more than 46,000 workers, as the University of Arizona consistently serves as a feeder system of young graduates. Many professional and financial services firms have established back office functions in the metro area due to competitive wages, affordable office space and a lack of natural disasters and weather concerns. Large employers play a significant role in the Tucson economy and there is a healthy mix of private and public employers. Raytheon Missile Systems is the largest single employer in the metro area, employing more than 12,000 workers. The University of Arizona is the second-largest employer (10,300 workers), followed by the State of Arizona (8,700 employees), Davis-Monthan Air Force Base (7,700 workers), Wal-Mart Stores (7,200 employees), Tucson Unified School District (7,000 employees), U.S. Army Intelligence Center and Fort Huachuca (6,200 employees), the Pima County Government (6,200 employees), the City of Tucson (5,400 employees) and Freeport McMoRan (4,900 workers). Approximately 7,100 jobs are projected to be added to the market in 2017, with the likes of Raytheon, Caterpillar and Comcast adding personnel. WESTVIEW APARTMENTS Offering Memorandum Nick Tomko pg. 17

17 Presented By: Equilibrium REALTY Nick Tomko - Listing Agent Direct: ntomko@equilibriumprops.com Sofonias Astatke - Managing Partner/Broker sofonias@equilibriumrealty.com Vanessa Santucci - Managing Director Vanessa@equilibriumprops.com This document/ has been prepared by Equilibrium Realty for advertising and general information only. Equilibrium Realty 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. Equilibrium Realty 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 Equilibrium Realty and/or it s licensor(s) All rights reserved.