12 HOME BFR INVESTMENT PORTFOLIO SUMMERVILLE SC

Transcription

1 12 HOME BFR INVESTMENT PORTFOLIO SUMMERVILLE SC OFFERING MEMORANDUM Jeff Cline Managing Director Principal E. Arizona Biltmore Circle Building 4, Suite 1400 Phoenix, Arizona Michael Finch Executive VP Principal Robert Duncan Sellstate Group Realty BIC/Owner All SVN Offices Independently Owned & Operated 2018 All Rights Reserved

2 PROPERTY SUMMARY 4 Offering Summary PROPERTY DESCRIPTION 6 Property Overview HIGHLIGHTS 8 Property Highlights LOCATION OVERVIEW 10 Location Info Regional Map ATTRACTIONS 12 Nearby Attractions INVESTMENT OVERVIEW 14 Operating Pro Forma Debt Overview Financing Assumptions DEMOGRAPHICS REPORT ADVISORS BIO Home BFR Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

3 Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

4 PROPERTY SUMMARY OFFERING SUMMARY Sale Price: $2,434,940 Number of Units: 12 Cap Rate: 5.40% NOI: $131,437 Avg. Building Size: Zoning: 1,224 Residential Unit Type Number of Units Average Size/Type Average Rent/SQ FT Average Monthly Rent Market: South Carolina 3BR/2BA 4 1,052 $1.40 $1,475 Sub-market: Charleston 3BR/2BA 4 1,246 $1.20 $1,495 Price/SF: $ BR/2BA 1 1,279 $1.20 $1,535 3BR/2BA 2 1,279 $1.20 $1,535 **The Amounts Shown Are Market Estimates** 3BR/2.5BA 1 1,663 $1.10 $1, HOME BFR Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

5 Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

6 PROPERTY DESCRIPTION PROPERTY OVERVIEW This Build for Rent (BFR) investment opportunity gives a buyer the ability to acquire 12 existing or about to be completed homes in the established community of Carrington Chase at Lakes of Summerville, a short distance outside of Charleston, South Carolina, in the town of Summerville. The seller is an extremely experienced and qualified builder and will be able to deliver the homes on schedule. Carrington Chase is located within the Dorchester II school district. The key industries in the area include aerospace, automotive, IT and defense, and life sciences. Unemployment in the MSA was a mere 3.0% in July The homes being offered will be completed by mid-november The floorplans include a 3-bedroom, 2-bathroom 1,052 square foot home, two versions of a 3-bedroom, 2-bathroom 1,246 square foot home, a 1,279 square foot 3-bedroom, 2-bathroom home, and a 1,663 square foot 3-bedroom, 2.5-bathroom home. Less than 25 miles outside Charleston, Carrington Chase is an easy drive into Charleston to experience the Southern Charm and cultural amenities the town has to offer. The Charleston MSA had a Gross Regional Product of $ Billion and a population of 761,000 people. The population has been growing at 16.7%. 6 Portfolio 12 HOME BFR Name Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

7 Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

8 HIGHLIGHTS PROPERTY HIGHLIGHTS Stabilized Year 1 Gross Yield of 8.83% Stabilized Year 1 Cap Rate of 5.61% Strong 22.09% Stabilized Year 1 Leveraged IRR and a Stabilized Year 1 Leveraged Cash on Cash of 4.09% 12 HOME Build for Rent Investment Portfolio Homes scheduled for completion by mid-november 2018 Part of a large master plan community A short distance from Downtown Charleston, South Carolina Affordable housing options are needed in the area The largest employer in the area is Joint Base Charleston, a short distance away Joint Base Charleston provides service to over 79,000 Airmen, Sailors, Soldiers, Marines, Coast Guardsmen, civilians, dependents, and retirees 8 Portfolio 12 HOME BFR Name Investment Portfolio Summerville Name SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

9 Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

10 LOCATION OVERVIEW LOCATION OVERVIEW South Carolina, also known as the Palmetto State, is the 40th most extensive and 23rd most populous US State. The GDP as of 2013 was $183.6 billion, with a steady annual growth rate of 3.13%. The United States Census Bureau estimates that the population of South Carolina was 5,024,369 on July 1, 2017, an 8.6 percent increase since the 2010 census. South Carolina is known for its 187 miles of coastline, beautiful lush gardens, historic sites and Southern plantations. Major agricultural outputs of the state are tobacco, poultry, cotton, cattle, dairy products, soybeans, hay, rice, and swine. Other major industrial outputs include textile goods, chemical products, paper products, machinery, automobiles, automotive products, and tourism. There are 1,950 foreign-owned firms operating in South Carolina employing almost 135,000 people. Foreign Direct Investment brought $1.06 billion to the state economy in The state has the fourth largest state-maintained road system in the country, consisting of 11 Interstates, state highways, and secondary roads, totaling approximately 41,500 miles. 10 Portfolio 12 HOME BFR Name Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

11 REGIONAL MAP Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

12 ATTRACTIONS Portfolio 12 HOME BFR Name Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

13 NEARBY ATTRACTIONS Middleton Place is a National Historic Landmark located in Dorchester County, about 15 miles northwest of Charleston. With over 65 acres of beautifully landscaped grounds, this site is the oldest landscaped gardens in America. Middleton Place is home to The House Museum, built in Introducing and educating visitors, guided tours are led to understand the history behind the colonial property. Enjoy garden guides, meeting the animals of the estate and learning the significant stories of the lives that once lived there. Azalea Park is a scenic park with beautifully landscaped flower beds, ponds, sculptures, tennis courts, and walking trails. Throughout the whole year, the azaleas and camellias offer an astounding view to admire, including reflection ponds and bronze sculptures. The tennis courts are available for recreational play and are home to the Cuthbert Community Center. Colonial Dorchester State Historic Site sits along the Ashley River, near the town of Summerville in Dorchester County, South Carolina. This historic site offers a glimpse into South Carolina s colonial past. At the beginning of the Revolutionary War, this site was abandoned and disappeared, leaving only a handful of original structures. Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

14 INVESTMENT OVERVIEW INVESTMENT OVERVIEW Number of Units Buy Price Buy Price Per Unit Buy Price/SQFT 12 $2,434,940 $202,912 $ Market Year 1; T-12 Year 3; T-36 Year 5; T-60 Cap Rate - Stabilized 5.40% 5.61% 6.05% 6.52% Gross Yield 8.57% 8.83% 9.37% 9.94% Net Operating Income (NOI) $131,437 $136,540 $147,264 $158,714 Leveraged IRR 22.09% 23.81% 25.63% Unleveraged IRR 11.01% 11.52% 12.07% Leveraged Cash-On-Cash 3.39% 4.09% 5.55% 7.12% Home HOME BFR Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

15 OPERATING PRO FORMA Market Year 1; T-12 Year 3; T-36 Year 5; T-60 Annual Rent $219,780 $226,373 $240,160 $254,785 Average Monthly Lease Rate (P.S.F.) $1.25 $1.28 $1.36 $1.45 Vacancy 5.00% 5.00% 5.00% 5.00% Operating Expenses $77,354 $78,514 $80,887 $83,332 Net Operating Income (NOI) $131,437 $136,540 $147,264 $158,714 DEBT OVERVIEW Market Year 1; T-12 Year 3; T-36 Year 5; T-60 Debt Amount $1,704,458 $1,678,157 $1,621,662 $1,559,549 Annual Debt Service Payments Estimated Annual Market Valuation Appreciation (National) $106,695 $106, % $106, % $106, % FINANCING ASSUMPTIONS Loan-To-Value Ratio 70.00% Interest Rate: 4.50% **Information is deemed reliable, but not guaranteed** Loan Amortization in Years 30 Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

16 DEMOGRAPHICS REPORT DEMOGRAPHICS REPORT 1 Miles 3 Miles 5 Miles Total Population 6,939 61, ,451 Median Age Median age (Male) Median Age (Female) Total Household 2,602 22,976 45,080 Total Person/Household Avg. Household Income $55,338 $61,884 $64,505 Avg. House Value $165,788 $181,110 $188,848 *Demographic data derived from 2010 US Census 16 Portfolio 12 HOME BFR Name Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

17 Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

18 ADVISOR BIOGRAPHIES JEFFREY CLINE Managing Director Principal 2400 E. Arizona Biltmore Circle Building 4, Suite 1400 Phoenix, AZ T: C: AZ #SA nationally features existing SFR asset as well as BFR new build home commercial investment portfolios from 5 to 5,000 homes. SFRhub Advisors is a dedicated SFR Portfolio office of professionals leading the industry. Jeff s commercial real estate advisory features top local and national industry professionals with both general and niche experience. The team members are accountable and use the industry s top marketing and asset analysis technology for both acquisition and disposition clients. The service, communication and client representation is unsurpassed in the nation. Jeff has completed over $2 billion in commercial real estate transactions in the multifamily, industrial, retail, hospitality, land and specialty segments. Jeff specializes in mid to large scale single property and portfolio transactions. 18 Portfolio 12 HOME BFR Name Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

19 MICHAEL FINCH Executive VP Principal 2400 E. Arizona Biltmore Circle Building 4, Suite 1400 Phoenix, AZ T: C: AZ #SA leads the nations #1 SFR & BFR (Build For Rent) Investment Portfolio group. These portfolios are CRE investment grade portfolios ranging from 5 to 5,000 homes nationwide. Michael Finch began his career in Commercial Real Estate Brokerage over 14 years ago in Phoenix, Arizona. He has developed broad local and national relationships with the top-ranked, high density, mid to large scale developers for Commercial Mixed Use & Multifamily Development. As markets shifted in 2008, Michael leveraged lender relationships, formed in previous years, to plan distressed real estate dispositions for his buyer base. Michael was able to develop and grow these relationships to become an integral part of many clients acquisition and disposition teams. Michael has developed and managed extensive pipelines of lender owned assets, short sales, portfolio note sales, and traditional commercial real estate asset sales. Michael has continued to deliver value and opportunities as market cycles have evolved. With an extensive national network, Michael has been successful and enjoys being an integral partner for client teams focused on large-scale income-producing portfolios, and more specifically having focused on Single Family Rental Portfolios and Build For Rent Investment Portfolios for many years now. Today, Michael is a Principal, Founder, and Executive Vice President in SFRhub Advisors, the leading SVN commercial real estate brokerage focused on Single Family Rental Portfolios & Build For Rent (BFR) Investment Portfolios sales on a national level. Michael is also a founding partner in SFRhub.com, a soon to be launched digital marketplace for Buyers & Sellers of SFR & BFR Investment Portfolios. Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

20 ROBERT DUNCAN BIC/Owner Sellstate Group Realty 5276 Hwy 17 Business South Suites B & C Murrells Inlet, SC T: sellstategroupsc@gmail.com License: Dedicated, Outstanding, Knowledgeable and most of all Caring these words are used to describe Robert Duncan by those who have known and worked with this gentleman in his Army, marketing and clinical specialist careers. Rob is an experienced leader serving with a Team approach with Individual Care. His exceptional enthusiasm, professionalism, leadership, and exemplary dedication to duty have enhanced the mission success of each client he has ably served. This is the cornerstone of his success. Clients, friends and neighbors know he applies the same mission orientation, ethics and professionalism while serving his patients and country for thirty years. Background and Accomplishments Robert retired from the Army in 1993 after a 10 year Clinical Specialist and 13 years as Special operations Infantry Officer. He served as President of Marketing Management International, Inc. and President of Duncan Clinical Specialties, Inc. Attended The Citadel, College of Charleston, University of SC, Park College, University of Southern ILL, and Baylor University. Robert received his BS in Health Care Administration from Trinity University. Designations: CRS, SRES, REOS, CREN, ABR, ASR, RRS, RECS, FRE and e-pro. Robert serves on the State Professional Standards Committee and Community Outreach committee. State Mediator settling Real Estate issues He serves as Trustee of RAFT Funds and Habitat for Humanity funds 20 Portfolio 12 HOME BFR Name Investment Portfolio Summerville SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

21 Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

22 ABOUT SVN SFRhub ADVISORS Our proprietary Advanced SFR Scrub Report supports the buyer and seller decision process with quality and real time intelligent decision data, enabling an analysis of every aspect of the opportunity. Also proprietary are our exclusive accelerated contract documentation process, title insurance management, due-diligence period logistics and documentation, with the final close of escrow. Ultimately, these pieces combine for a seamless decision-managed process for both the buyer and seller. SVN SFRhub Advisor delivers the nation s only single-family rental (SFR) portfolio Live Acquisition Board transaction platform. In support, the dedicated, experienced, and professional SFR portfolio team has developed both an exclusive and conventional SVN SFRhub Advisors program. In applying this advanced technology, becomes the nation s sole SFR Portfolio Live Acquisition Board Transaction Platform, supporting both sellers and buyers of single-family residential rental investment portfolios. In addition, we feature existing asset as well as new-build home commercial investment portfolios nationally, anywhere from 5 to 5,000 homes. INTELLIGENT DECISION DATA SFRhub is our exclusive research and data provider with end-to-end Intelligent Decision Data solutions. A complete, effective clean data sourcing, research and analysis is essential to all SFR Portfolio buyers and sellers. The exclusive SFRhub Advanced SFR Scrub Report is essential for all intelligent decisions, whether they re operational, asset acquisition or disposition and the overall strategic asset plan. Today s most effective and intuitive clean and verified data solutions are comprised of 22 Portfolio 12 HOME BFR Name Investment Portfolio Summerville SC reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics and prescriptive analytics. SFRhub has knowledgeable and experienced individuals who work with data sources as true partners to help implement solutions that are forward-thinking, yet still based on industry knowledge and best practices. All SVN Offices Independently Owned & Operated 2018 All Rights Reserved Sellstate Group Realty

23 DISCLAIMER The material contained in this Offering Brochure is furnished solely for the purpose of considering the purchase of the property within and is not to be used for any other purpose. This information should not, under any circumstances, be photocopied or disclosed to any third party without the written consent of the SVN Advisor or Property Owner, or used for any purpose whatsoever other than to evaluate the possible purchase of the Property. The only party authorized to represent the Owner in connection with the sale of the Property is the SVN Advisor listed in this proposal, and no other person authorized by the Owner to provide any information or to make any representations other than contained in this Offering Brochure. If the person receiving these materials does not choose to pursue a purchase of the Property, this Offering Brochure must be returned to the SVN Advisor. Neither the SVN Advisor nor the Owner make any representation or warranty, express or implied, as to the accuracy of the information contained herein, and nothing contained herein is or shall be relied upon as a promise or representation as to the future representation of the Property. This Offering Brochure may include certain statements and estimates with respect to the Property. These Assumptions may or may not be proven to be correct, or warranties, expressed or implied, contained in or omitted from this Offering Brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered Real Estate Purchase Agreement between it and Owner. materials shall not look to Owner or the SVN Advisor nor any of their officers, employees, representatives, independent contractors or affiliates, for the accuracy or completeness thereof. Recipients of this Offering Brochure are advised and encouraged to conduct their own comprehensive review and analysis of the Property. This Offering Brochure is a solicitation of interest only and is not an offer to sell the Property. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the Property and expressly reserves the right, at its sole discretion, to terminate negotiations with any entity, for any reason, at any time with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing the Offering Brochure or making an offer to purchase the Property unless and until the Owner executes and delivers a signed Real Estate Purchase Agreement on terms acceptable to Owner, in Owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledge the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extend Owner or any agent of Owner corresponds with any prospective purchaser, any prospective purchaser should not rely on any such correspondence or statements as binding Owner. Only a fully executed Real Estate Purchase agreement shall bind the property and each prospective purchaser proceeds at its own risk. The information contained herein is subject to change without notice and the recipient of these Sellstate Group Realty Information is deemed reliable, but not guaranteed. Programs and pricing is subject to change.

24 2400 E. Arizona Biltmore Circle Building 4, Suite 1400 Phoenix, Arizona Hwy 17 Business South Suites B & C Murrells Inlet, SC All SVN Offices Independently Owned & Operated 2018 All Rights Reserved