Casa Sunrise. Offering Memorandum N 40TH STREET PHOENIX AZ A 14 Unit Garden Style Apartment Community. Investment Sales and Leasing

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1 Casa Sunrise Offering Memorandum Investment Sales and Leasing 3002 N 40TH STREET PHOENIX AZ A 14 Unit Garden Style Apartment Community

2 Index Overview Page 3 Investments Highlights Page 4 Property Overview Page 5 Location Aerial Page 6 Location Overview Page 7 Property Details Page 8 Financial Summary Page 9 Rent Roll & Expenses Page 10 Sales Comparables Page 11 Sales Comparables Map Page 12 Exclusive Representation Sandra Shaffer sandy@investsw.com I Mary Jo Kirk, CCIM mj@investsw.com 2

3 Overview Casa Sunrise 3002 N 40th Street Phoenix AZ The Asset Number of Units 14 Mix One and Two Bedroom Year Built 1964 Average Unit Size Net Rentable SF ±821 SF ±11,500 SF The Offering Price $2,100,000 Price/Unit $150,000 Price/SF $183 Average Rent/SF $0.98 Year One NOI $90,895 Cap Rate 4.33% Features Large Units, SF Pool Area Walk-In Closets Tandem 2 Car Parking Individual Gas & Electric Meters Rear Patios Value-Add with Below Market Rents Month-to-Month Tenancy 3

4 Investment Highlights Located in the Desirable Arcadia Area Submarket Close Proximity to Numerous Restaurants and Retail Easy Access to State Route 51 and the 202 Loop Pride of Ownership Asset with Low Maintenance Single Story, Ground Level Units, Each with Private Rear Patios and Storage Rooms Month-to-Month Tenancy Allows the Investor to Reposition the Asset Low Under Market Rents Creates Immediate Upside Opportunity 4

5 Property Overview Casa Sunrise is a 14-unit apartment community located on 40th Street in the remarkably desirable east Phoenix Arcadia area between Indian School and Thomas. Crafted in 1962, this property is constructed of block, wood siding, with shingle composite roofs. The property includes a unit mix of Five 1Bd/1Ba, Two 2Bd/1Ba, and Seven 2Bd/2Ba units on just under an acre of grounds. All units have sizeable well designed floor plans extending from approximately 700 to 900 square feet. Interiors were remodeled 12 years ago with new cabinets, counters and some fixtures. Amenities include walk in closets, private patio/yards, individual storage units, covered parking, on site laundry, and separate gas/electric meters. Welcoming grounds offer a beautiful pool area and landscaping. Roof is approximately 5 years old. Casa Sunrise offers investors a considerable opportunity to procure this well located property with under market rents. Investors may simply increase rents or take the property to the next level of mid-century modern vogue to full income potential. Located in one of the most popular Phoenix submarkets where rents have been on a path of significant increase. Phoenix is consistently forecast to continue its rapid increase in population and economic growth for the near future. 5

6 Located in the Prestigious East Phoenix Arcadia Area 6

7 Location Overview Arcadia Area and the Central Phoenix Corridor The highly desirable Arcadia area is a located between the Phoenix s Central Corridor and the hubs surrounding the Camelback Corridor and the Biltmore region. Called Midtown, it is considered to be in the middle of everything. Midtown is accessible to several freeways providing residents of Casa Sunrise excellent access to jobs. The central corridor of Phoenix encompasses an expansive executive and professional workforce along with a large employment base. Located within Midtown, Biltmore, Downtown Phoenix and the Sky Harbor International Airport areas are drivers of employment with needs of more than one half-million employees such as Banner Good Samaritan Medical Center, Phoenix Children s Hospital, Honeywell, and Phoenix Newspapers. The Biltmore area alone offers a high concentration of jobs in various professional sectors of business. Located within the heart of these areas the Arcadia neighborhoods encompass sizeable populations of affluent renters creating superb appeal for boutique rental properties. Educational Corridor Casa Sunrise is located in favorable proximity to numerous higher education campuses such as Phoenix College with ±12,000 students; the Downtown Campus of Arizona State University with ±12,500 students; Phoenix Biomedical Campus with ±1,500 students and the ASU Walter Cronkite School of Journalism with ±2,000 students. Restaurants The Arcadia area boasts some of the best eateries in Phoenix. The growing list includes the Finestre Modern Gastronomy, Muse and Market, Angel s Trumpet Ale House and Nook Kitchen to name just a few - all within a short distance of Casa Sunrise. Camelback Corridor 7

8 Property Details The Property Number of Units 14 Unit Mix Five 1 Bd/1 Ba Two 2 Bd/1 Ba Seven 2 Bd/2 Ba Number of Buildings 3 Number of Stories 1 Parking 28 Spaces (14 Covered) Plus 3 Guest Spaces Zoning R-3 Parcel Acreage Density A ±0.95 acres Units/Acre Year Built 1964 Year Renovated 2006 Square Footage Average Unit Size Average Rent ±11,500 SF ±821 SF ±$797/Mo Construction Foundation Framing Exterior Roof Parking Surface Landscaping Topography HVAC Electricity Water/Sewer Gas Concrete Slab Block Painted Wood Siding Composite Shingle Asphalt Desert/Palm Trees Level Individual Roof-Mounted Individually Metered Master Metered Individually Metered 8

9 Financial Summary Current Income Average Rate/SF $0.98 Gross Annual Rents $133,876 Laundry Income $3,600 Gross Income $137,476 Less Vacancy 3% -$4,124 Effective Gross Income $133,352 Less Expenses -$42,367 NOI $90,985 Price $2,100,000 Price per Unit $150,000 Price per SF $183 Cap Rate 4.33% Proforma Average Rate/SF $1.45 Annual Rents $200,100 Laundry Income $3,600 Gross Income $203,700 Less Vacancy 3% -$6,111 Effective Gross Income $197,589 Less Expenses -$43,638 NOI $153,951 Price $2,100,000 Price per Unit $150,000 Price per SF $183 Cap Rate 7.33% 9

10 Rent Roll & Expenses Rent Roll Current Rent Roll Proforma Tenan Move In Unit SF Rents Tax Rent/SF Rents Rent/SF Wool Jermo Owne Puent Sanch Martin Good Chap Velazq Calixt Janss Begay Expenses 2017 House Electric APS $1,959 Repairs & Maintenance $3,551 Insurance $3,663 Real Estate Taxes $7,045 Water/Sewer/Trash $8,029 Trash $2,518 Unit Utilities $42 Pool Service $1,129 Southwest Gas (Pool) $750 Pool Permit Fee $270 Rental Tax Annual Fee $28 Credit Check $140 Carpet Cleaning $50 Landscaping $2,589 Tree Service (Palms) $990 Management Fee (7%) $9,623 Total $42,367 10

11 Sale Comparables Subject: 3002 N 40th Street Phoenix Casa Sunrise Units 14 Year Built 1964 Unit Size 821 sf Rent $0.98 Price $2,100,000 Price/Unit $150,000 Price/SF $ N 28th Street Phoenix N 26th Street Phoenix E Earll Drive Phoenix N 45th Place Phoenix N 37th Street Phoenix N 38th Street Phoenix Village 28 Units 25 Year Built 1969 The V Units 11 Year Built 1962 Arcadia Edge Units 23 Year Built 1967 Deveron Arcadia Units 10 Year Built 1960 The Wells Units 11 Year Built 1961 Montego Units 15 Year Built 1971 Sale Date 12/29/17 Unit Size 803 sf Rent $1.49 Price $4,000,000 Price/Unit $160,000 Price/SF $199 Sale Date 5/29/18 Unit Size 611 sf Rent $1.74 Price $1,900,000 Price/Unit $172,727 Price/SF $281 Sale Date 4/24/18 Unit Size 781 sf Rent $1.62 Price $4,350,000 Price/Unit $189,130 Price/SF $240 Sale Date 12/22/17 Unit Size 780 sf Rent $1.56 Price $1,700,000 Price/Unit $170,000 Price/SF $217 Sale Date 8/30/18 Unit Size 860 sf Rent $1.50 Price $2,195,000 Price/Unit $199,545 Price/SF $232 Sale Date 6/13/18 Unit Size 863 sf Rent $1.48 Price $2,675,000 Price/Unit $178,333 Price/SF $220 11

12 Sale Comparables Map 12

13 The information contained herein has been obtained from sources believed reliable. While we do not doubt its accuracy we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial, and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Exclusive Representation Investment Sales and Leasing Sandra Shaffer sandy@investsw.com I Mary Jo Kirk, CCIM mj@investsw.com 13