3827 BOWSER APARTMENTS

Transcription

1 3827 BOWSER APARTMENTS 3827 BOWSER AVENUE DALLAS, TX Curtis Hawkins Senior Director

2 PROPERTY OVERVIEW 3 Executive Summary Property Overview Amenities Additional Photos FINANCIAL OVERVIEW 10 Unit Mix Financial Analysis Trending Valuation IRR Deferred LOCATION OVERVIEW 15 Regional Maps Walkable Restaurants Map Area Highlights Economic Drivers DFW IN THE NEWS 20 DEMOGRAPHICS 26 ABOUT SVN 33 Advisor Bios SVN Investment Sales Group 6320 Lyndon B. Johnson Freeway, Suite 228, Dallas, TX OFFERING MEMORANDUM

3 1. PROPERTY OVERVIEW 3827 Bowser Avenue Dallas, TX SVN Investment Sales Group 6320 Lyndon B. Johnson Freeway, Suite 228, Dallas, TX Page 3

4 Executive Summary PROPERTY OVERVIEW SVN Investment Sales Group is pleased to announce the exclusive listing of this 12-unit apartment building located in the heart of North Oak Lawn. Completed in 1925 of Greek Revival architecture, it features a brick exterior, balconies, enclosed private yards, arched doorways and windows, oak hardwood flooring and a gable composition roof. The units are configured of period design with plenty of windows and little nooks (rooms) for the tenants to enjoy. There are multiple floor plans ranging from 485 SF to 805 SF of both studios and 1-bedroom/1-bath units. All units have gas appliances, Dearborn space heaters and have window units for cooling. PROPERTY SUMMARY SALE PRICE: $1,950,000 NUMBER OF UNITS: 12 RENTABLE SF: CAP RATE: RETURN ON EQUITY: 7,801 SF 5.43% 6.51% OCCUPANCY: 100% LOT SIZE: 0.28 AC YEAR BUILT: 1925 ZONING: SUBMARKET: CROSS STREETS: Multifamily(MF-2) Oak Lawn Bowser Avenue & Reagan Street Through the years 3827 Bowser has enjoyed high occupancy with little turnover. The walkable neighborhood is home to a variety of shops and restaurants with upscale apartments and condominiums everywhere. Some have considered converting the building to townhomes with its frontage along Reagan. The extra attic square footage could be used for tenant storage. Sandwiched between Uptown Dallas and Highland Park, this diverse neighborhood is popular to young and old alike seeking a comfortable urban atmosphere with easy access to employment. Both new development and redevelopment of the area has been mostly resistant to real estate cycles as has the rental market attractive to long term investor. PROPERTY HIGHLIGHTS Location-Location-Location Ideal for Young Professionals Seeking an Active Lifestyle Outside of Downtown Walkability Score of 89/100 Meaning that Most Errands Can be Accomplished on Foot Lucky s Café and Other Casual/Fine Dining Spots Close-by Easy Access to Shops and Employment Individually Metered for Electricity and Gas Implementing RUBS this Year for Water and Trash Pick-Up Excellent Long-Term Investment Page 4

5 Property Overview Site Description Construction Property Name: 3827 Bowser Avenue Apartments Year Built: 1925 County: Dallas Number of Buildings: 1 CAD Account #: Number of Stories: 2 Number of Units: 12 Foundation: Pier & Beam Lot Size: 0.28 AC Framing: Wood Density: Units Per Acre Roof: Pitched Composition Rentable SF: 7,801 SF Building Exterior: Brick Building Class: C Parking Surface: Paved Concrete Zoning: Multifamily Parking Spaces: Rear of Building and Street Parking Mechanical Systems Laundry: On-Site Laundry Facility HVAC: Individual Window Units Heat: Individual Space Heaters Utility Metering Hot Water: Central (Gas Boiler) Electricity: Individually Metered Electrical Wiring: Copper Water/Sewer: Gas: Master Metered RUBSS Individually Metered Management: Staff Shared with Other Properties Trash: Property Contract RUB Leasing: Manager RUB: Implemented April 2017 Maintenance: Shared With Other Properties Page 5

6 Amenities BUILDING AMENITIES - Greek Revival Charm Preserved over the Years - Balconies, Enclosed Private Yards, Arched Doorways and Windows - Oak Hardwood Flooring - Interesting Floor Plans - White Appliance Package with Gas Ranges - Ceiling Fans in Living Areas - 2 Faux Wood Blinds - Semi-Private Entries - Laundry Facility - Secured Building Access - Seven Concrete Parking Spaces and On-Street Overflow Parking AREA AMENITIES - Within walking distance of restaurants including Einstein Bros. Bagels, La Madeleine, Lucky s Café, Panera Bread, Smoothie King, Starbucks, and Pappadeaux - Bank of America, CVS Pharmacy, Kroger, Whole Foods, and more are within 1-mile - Strategically located less than 2-miles east of I-35, providing easy commuter access to the entire DFW Metroplex - Located just 2-miles north of the Dallas CBD which employs over 135,000 people - DART bus stop located walking distance from the property, providing service to the City Place Station and Downtown Dallas, affording residents convenient and affordable access to major employers, entertainment, and the DFW Airport Page 6

7 Additional Photos Page 7

8 Additional Photos Page 8

9 Additional Photos Page 9

10 2. FINANCIAL OVERVIEW 3827 Bowser Avenue Dallas, TX SVN Investment Sales Group 6320 Lyndon B. Johnson Freeway, Suite 228, Dallas, TX Page 10

11 Unit Mix Page 11

12 Financial Analysis Page 12

13 Trending Valuation Page 13

14 IRR Deferred Page 14

15 3. LOCATION OVERVIEW 3827 Bowser Avenue Dallas, TX SVN Investment Sales Group 6320 Lyndon B. Johnson Freeway, Suite 228, Dallas, TX Page 15

16 Regional Maps Page 16

17 Walkable Restaurants Bob s Steak House Gloria s Latin Cuisine Eddie V s Seafood Lucky s Cafe La Madeleine Scardello Cheese Parigi Italian Pappadeaux Seafood Steel Sushi Eatzi s Italian Market Page 17

18 Area Highlights Median annual household income of $74,577 within a 1- mile radius of the property which is 21% higher than the national average DART bus stop located walking distance from the property, providing service to the City Place Station and Downtown Dallas, affording residents convenient access to major employers, entertainment, and the DFW Airport High traffic count of 19,270 cars per day that travel through the intersection of Bowser Avenue and Oak Lawn Avenue, making the property very visible Located just 2-miles north of the Dallas CBD which employs over 135,000 people Within walking distance of restaurants including Einstein Bros. Bagels, La Madeleine, Panera Bread, Smoothie King, Starbucks, Pappadeaux, while Bank of America, CVS Pharmacy, Kroger, Whole Foods, and more are within 1-mile Housing prices in Dallas increased more than 50% between 2012 and 2016 and have already risen another 12.32% in 2017 YTD, largely due to recent population growth Close proximity to schools Located within 1-mile of Ben Milam Elementary School, Alex Spence Middle School, and North Dallas High School and just over 2- miles from Southern Methodist University Texas is leading the nation in real GDP growth at 3.9% last quarter, more than double the U.S. average of 1.4% (August 2017) Strategically located less than 1-mile west of I-75, less than 1-mile east of the Dallas North Tollway, and less than 2-miles east of I-35, providing easy commuter access to the entire DFW Metroplex Abundant entertainment options including the Bishop Arts District, Deep Ellum, Lower Greenville, White Rock Lake, World Class Art Museums, the Dallas Zoo, the Dallas World Aquarium, and more Texas added 293,400 jobs between July 2016 and July 2017, outpacing the rest of the nation and making it the #1 state for job growth during that timeframe Located approximately 2- miles from Dallas Love Field Airport and just 12-miles from DFW International Airport which is the world s 3 rd largest airport in operations and 11 th largest in total passengers Page 18

19 Economic Drivers ENTERTAINMENT DRIVERS - Casual to Fine Dining - Shops, Parks, Entertainment - Katy Trail - American Airlines Center - Bishop Arts District - Deep Ellum - North Park Mall - World Class Art Museums LARGEST EMPLOYERS (>10,000 EMPLOYEES) - Wal-Mart Stores 34,000 employees - American Airlines 27,000 employees - Texas Health Resources 22,296 employees - Bank of America 20,000 employees - Dallas I.S.D. 19,470 employees - AT&T 17,000 employees - Baylor Health Care System 16,500 employees - JP Morgan Chase 13,500 employees - UT Southwestern 13,122 employees - City of Dallas 12,836 employees - HCA North Texas 12,000 employees - U.S. Postal Service 10,439 employees - Kroger 10,097 employees Page 19

20 4. DFW IN THE NEWS 3827 Bowser Avenue Dallas, TX SVN Investment Sales Group 6320 Lyndon B. Johnson Freeway, Suite 228, Dallas, TX Page 20

21 DFW in the News Dallas expected to be one of country s economic powerhouses in 2018 January 30, 2018 John Egan If a new ranking from Business Insider is any indication, 2018 looks like it ll be a banner year for Dallas. Dallas ranks fourth among 10 U.S. cities that are projected to soar the most this year in terms of financial stability, based on population growth, employment, and business opportunities, the news website says. There are many Texas cities that could also make the list of financially stable cities, including Austin and San Antonio, Business Insider acknowledges. But the Dallas-Plano-Irving pocket of the Metroplex is the only Texas locale appearing on the Business Insider list, thanks to its significant employment gains and overall strong economy. The website cites the Dallas-Plano-Irving area s addition of 50,000 high-skill tech jobs from 2011 to 2016, as well as the area s robust housing market. Of course, Dallas could get an even bigger economic lift if Amazon picks the city its second headquarters. Dallas and Austin are the two finalists from Texas. A decision on the so-called HQ2 project is expected later this year. Page 21

22 DFW in the News Earlier this month, Hilda Galvan, 2017 chair of the Dallas Regional Chamber, said North Texas economic trends since 2010 population growth of roughly 1 million, the addition of nearly 700,000 jobs, and the relocations of 75 corporate headquarters indicate workers and businesses will continue to thrive in the Dallas area, with or without HQ2. Here s the full Business Insider list: 1. Provo, Utah 2. Raleigh, North Carolina 3. Fort Collins, Colorado 4. Dallas 5. San Francisco 6. Bradenton-Sarasota, Florida 7. Nashville 8. Charlotte, North Carolina 9. Atlanta 10. Seattle Page 22

23 DFW in the News Why Dallas-Fort Worth led the nation s top areas with over 100,000 new jobs January 11, 2018 Jill Cowan, Economy Writer Dallas-Fort Worth s job base grew the fastest of the nation s dozen biggest metro areas over the year, the Bureau of Labor Statistics reported Thursday. From November 2016 to November of last year, the D-FW metro added 100,400 jobs a 2.8 percent increase. That was also the largest increase by sheer number. Boston and Phoenix each grew 2.2 percent during the same time, and employment in Atlanta grew 2.1 percent. Much of D-FW s growth was spurred by expansion in professional and business services, which added 31,100 positions. That s no surprise as regional leaders work to recruit corporate headquarters that employ thousands of highly paid workers in sprawling new developments anchored by offices. In particular, financial services companies have expanded their head counts in areas where living costs are cheaper than the coastal cities where those companies often have their headquarters. Charles Schwab, for instance, is expected to have 2,600 workers at its campus in Westlake that's under construction. Page 23

24 DFW in the News According to a BLS news release, leisure and hospitality added the second most jobs in D-FW during that year, 18,100 a sign that the restaurants and bars that serve all those new office workers are expanding quickly to keep up. Now, economists say, the biggest challenge in many fast-growing cities is to find enough workers to fill those jobs as baby boomers age out of the workforce and immigration slows. At the national and state levels, unemployment has been at record lows. Still, the Federal Reserve Bank of Dallas predicted that Texas, whose growth has has been powered in large part by D-FW in recent years, will continue to add jobs at top speed in As long as oil prices stay above $40 per barrel, a Dallas Fed economist said, the state is likely to expand employment 3 percent this year, adding about 366,000 new jobs. Elsewhere, health services was a major source of job gains; it added the most of any industry sector in eight metro areas, including Boston, Los Angeles, Miami and New York. Page 24

25 DFW in the News Texas added more people than any other state in past year Texas added more people than any other state from 2016 to 2017, according to national and state population data released last week by the U.S. Census Bureau. Between July 1, 2016 and July 1, 2017, the Texas population increased by nearly 400,000 people, No. 1 nationwide. The Lone Star State's population was about 28.3 million at that time. That 1.4 percent growth rate was the seventh-fastest in the U.S. in terms of percentage growth. Because of its time frame, the data doesn't reflect Hurricane Harvey's impact on Texas and other Gulf Coast states or other hurricanes' impacts on Florida, Puerto Rico and elsewhere. The Texas population grew naturally by about 210,000 people from July 1, 2016 to July 1, Births outpaced deaths by more than a two-to-one ratio, which was robust compared to most other places. Texas also saw net migration of about 190,000 people. About 58 percent of that growth came through international migration, while the remainder of the new residents came from other states. Full Article Available Here Page 25

26 5. DEMOGRAPHICS 3827 Bowser Avenue Dallas, TX SVN Investment Sales Group 6320 Lyndon B. Johnson Freeway, Suite 228, Dallas, TX Page 26

27 Dominant Tapestry Map Tapestry LifeMode L1: Affluent Estates L2: Upscale Avenues **L3: Uptown Individuals L4: Family Landscapes L5: GenXurban L6: Cozy Country L7: Ethnic Enclaves L8: Middle Ground L9: Senior Styles L10: Rustic Outposts L11: Midtown Singles L12: Hometown L13: Next Wave L14: Scholars and Patriots L15: Unclassified ** 3827 Bowser is located in an area characterized by LifeMode L3: Uptown Individuals in the Segment 3B/Metro Renters. See following pages for the socioeconomic and demographic composition of this segment. Source: ESRI, BOWSER AVENUE APARTMENTS APARTMENTS 3827 BOWSER 3827 BOWSER AVENUE, AVENUE, DALLAS, DALLAS, TX TX Page 27

28 LifeMode Group: Uptown Individuals Page 28

29 LifeMode Group: Uptown Individuals Page 29

30 LifeMode Group: Uptown Individuals Page 30

31 Traffic Count Map Close Up Page 31

32 Traffic Count Profile Page 32

33 6. ABOUT SVN 3827 Bowser Avenue Dallas, TX SVN Investment Sales Group 6320 Lyndon B. Johnson Freeway, Suite 228, Dallas, TX Page 33

34 Advisor Bios Curtis Hawkins Vice President SVN Investment Sales Group Curtis specializes in investment real estate in the Oak Lawn, Uptown, East Dallas, Oak Cliff and Park Cities areas of Dallas. His clients are mostly hands-on private investors buying and selling apartment buildings, warehouses, office buildings and multifamily developments. License #: Phone: Fax: Address: 6320 LBJ Frwy. Suite 228 Dallas, TX He has been fortunate to have two careers, one in technology sales and the other in commercial real estate. Immediately after college he held positions in engineering, management and sales but grew interested in commercial real estate and began investing and brokering in the evenings and on weekends. He later left the corporate world to sell commercial real estate funded by his own real estate investments. With the Texas real estate downturn in the mid-eighties, Curtis returned to Nortel Networks enjoying many years of success achieving the company s highest sales award, Salesman of the Year, grossing over $42 million in sales. In 2006, Curtis returned to commercial real estate full time to focus on income producing properties. He frequently finds himself in underwriting roles assisting clients with valuation analyses and market information to uncover pockets of opportunity. One client wrote Curtis is a professional. His marketing packages are excellent, he is accessible and he stays close to the sale from beginning to end. He has a Mechanical Engineering degree from the University of Arkansas and worked toward an MBA in Finance at SMU. He has been called upon to speak at regional sales meetings and seminars throughout the U.S. and Canada. Besides Nortel Networks, his past employers included IBM, Vought Aeronautics, AT&T, Lucent Technologies and Cushman & Wakefield. Volunteer work includes: Our Friends Place property committee, Operation Kindness Animal Shelter and the University of Arkansas MBA Mentoring Program. Page 34

35 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 circumstance, 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 brochure, and no other person is 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 or completeness 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. These Assumptions may or may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, the SVN Advisor and the Owner disclaim any and all liability for representations 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. The information contained herein is subject to change without notice and the recipient of those 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 acknowledged the foregoing and agreed to release the Owner and the SVN Advisor from any liability with respect thereto. To the extent Owner or any agent of 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. Page 35

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