ST. PAUL, MN Minnehaha Avenue West FOR SALE MULTIFAMILY INVESTMENT

Transcription

1 FOR SALE MULTIFAMILY INVESTMENT 1488 Minnehaha Avenue West Presented By: PHIL REESNES Senior Associate Michel Commercial Real Estate International, Inc. michelcommercialre.com

2 PROPERTY INFORMATION 3 LOCATION INFORMATION 9 FINANCIAL ANALYSIS 17 DEMOGRAPHICS 21 ADVISOR BIOS 23 CONFIDENTIALITY & DISCLAIMER All materials and information received or derived from Michel Commercial Real Estate International, Inc. its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither Michel Commercial Real Estate International, Inc. its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. Michel Commercial Real Estate International, Inc. will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Michel Commercial Real Estate International, Inc. makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Michel Commercial Real Estate International, Inc. does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Michel Commercial Real Estate International, Inc. in compliance with all applicable fair housing and equal opportunity laws. Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 2

3 SECTION 1 PROPERTY INFORMATION Presented By: PHIL REESNES Senior Associate preesnes@michelcommercialre.com Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 3

4 PROPERTY INFORMATION Executive Summary OFFERING SUMMARY Offering Price: $640,000 Number of Units: 7 Cap Rate: 6.0% NOI: $38,384 Lot Size: Parking Type Number of Parking Spaces 0.11 Acres Surface 4 Spaces Year Built: 1910 Building Size: 5,416 SF PROPERTY OVERVIEW The apartment property at 1488 Minnehaha Avenue West in St. Paul, MN was built in 1910 and features 7 apartment units, along with 4 off-street parking spaces. There are 5 one bedroom units and 2 two bedroom units. LOCATION OVERVIEW This property is in a great location on Minnehaha Avenue just 1 block south of Hamline University, 2 blocks east of Snelling Avenue, and 8 blocks from University Avenue Light Rail and the new Minnesota United Soccer Stadium. Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 4

5 PROPERTY INFORMATION Property Details PROPERTY ADDRESS: 1488 Minnehaha Avenue West St. Paul, MN PIN: LOT SIZE: BUILDING SIZE: BUILDING CLASS: PARKING DESCRIPTION 0.11 AC 5,416 SF C Off-street parking PARKING SPACES: 4 YEAR BUILT: 1910 NUMBER OF STORIES: 3 NUMBER OF UNITS: 7 LAND LEGAL DESCRIPTION Lot 10, Block 1, McCaskey's Re-arrangement of Block 1 of The Hamline Syndicate Addition No. 1, according to the recorded plat thereof, Ramsey County, Minnesota LAUNDRY DESCRIPTION On-Site Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 5

6 PROPERTY INFORMATION Complete Highlights PROPERTY HIGHLIGHTS Exterior is wood siding New roof 7 years ago on front and back portions. Middle portion in excellent shape Boiler cleaned, tuned, and rebuilt (if needed) by Heating Concepts in 2013 via Excel rebate New tile or linoleum in bathrooms between Apartment units have either hardwood floors, carpet, or ceramic tile All appliances less than 8 years old 3 of the 7 kitchens have been updated in the last 7 years Lawn is professionally managed and maintained 6 storage lockers Capital Improvements in 2013: Steps in rear of building replaced 2 of 7 units completely remodeled in last 5 years, Including: new bathrooms new kitchen updates light fixtures bathroom tile floor New appliances Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 6

7 PROPERTY INFORMATION Photos Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 7

8 PROPERTY INFORMATION Photos 2 Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 8

9 SECTION 2 LOCATION INFORMATION Presented By: PHIL REESNES Senior Associate preesnes@michelcommercialre.com Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 9

10 LOCATION INFORMATION Minnesota LOCATION OVERVIEW: MINNESOTA The State of Minnesota is the 12th largest state in the United States and has a population of approximately 5,500,000 people. Minnesota is a leader in industry, education, and healthcare and its residents are among the best educated and wealthiest in the nation. Minnesota has been ranked among the top 10 states in education, technology and innovation, quality of life, infrastructure, and economy. Its standard of living index is among the highest in the United States and there are many reasons why Minnesota is considered one of the best places to live, work and do business. Some of the world s most well-known companies have headquarters or major operations here including: Medtronic, Boston Scientific, 3M, Honeywell, Target, Best Buy, Cargill and several more. In 2015, CNBC named Minnesota America s Top State for Business. Minnesota is home to 17 Fortune 500 companies, the 2nd highest per capita in the nation. Since July of 2014, Minnesota has maintained an unemployment rate below 4.0%. As of March 2016, unemployment is at 3.7%, well below the current national unemployment rate. Minnesota s strong economy can be attributed to a diverse collection of industries including biotechnology, manufacturing, clean technology, data centers, mining and renewable energy. Minnesota has one of the strongest life-science, biotechnology and health technology clusters in the world which generates billions of dollars in revenue each year. Minnesota s educational system is top notch. Minnesota is home to nearly 200 public and private post-secondary institutions and the Minnesota State Colleges and Universities serve 250,000 students each year. Six of Minnesota s private colleges and universities rank among the nation s top 100 liberal arts colleges, according to US News and World Report. Michel Commercial Real Estate International, Inc. michelcommercialre.com In 2015, Politico Magazine named Minnesota the Best State in the Nation Nearly 40% of Minnesota adults volunteer their time, among the highest percentage in the nation. The state s 8th graders rank near the head of the class in math, science and reading scores. The Mayo Clinic in Rochester, MN is considered to be one of the top health care institutions in the world. Approximately 91.8% of the population have a high school diploma or higher. Minnesota is home to 17 Fortune 500 companies, the 2nd highest per capita in the US. Page 10

11 LOCATION INFORMATION Minnesota Top medical facilities and a strong emphasis on access to health care make Minnesota a leader in the nation for healthcare services. Minnesota s own Medical Alley consists of over 8,000 medical companies that line a 350 mile stretch that begins in Rochester and extends up to northern Minnesota. US News and World Report ranked several of our hospitals among its Best Hospitals of These included: St. Johns Hospital, Abbott Northwestern and the University of Minnesota Medical Center. The Mayo Clinic in Rochester, one of the top institutions in the world, was also named on this list. Minnesota residents consistently score high on quality of life and standard of living indexes. With over 11,000 lakes, Minnesotans love to explore their spectacular surroundings. In addition to beautiful lakes and scenery, Minnesota is home to 76 state parks, 13 state trails and 62 state forest campgrounds. The people of Minnesota enjoy hiking, fishing, boating, outdoor recreation and endless cultural events and activities. Minnesota is home to an internationally known arts community and has more theaters per capita than anywhere else besides New York. In 2015, Politico Magazine named Minnesota the Best State in the Nation based on 14 different criteria such as income, unemployment, education, well-being and life expectancy. With a strong economy, a superb educational system, high access to quality healthcare, and an exceptional quality of life, it is clear that its residents are proud to call Minnesota home. Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 11

12 LOCATION INFORMATION Twin Cities LOCATION OVERVIEW: TWIN CITIES The Minneapolis-St. Paul area, referred to commonly as the Twin Cities, is an 11 county region that spans approximately 64 miles east to west. Of Minnesota s 5.5 million people, nearly 60% (about 3.8 million) live in the Minneapolis-St. Paul metro area. It is the geographic center of the Upper Midwest and is the 2nd largest economic center in the Midwest, behind Chicago. With a robust economy, a top-notch educational system, a high quality of life and endless cultural and recreational opportunities, the Minneapolis-St. Paul metro area is renowned for being a highly desirable place to live. The Minneapolis-St Paul area is a major commercial center located between the east and west coasts. The metro area has 16 of Minnesota s 17 Fortune 500 corporations. Many foreign companies have their US headquarters based in the Minneapolis-St Paul area as well. These include Medtronic, Allianz, Canadian Pacific, Pentair and RBC. The Twin Cities metro is also the 2nd largest medical device manufacture center in North America. Around 90% of all major industries are represented in the Twin Cities, making it one of the most diverse economies in the nation. The Twin Cities area s labor force has grown by 2% over the last 5 years (almost twice the national average) and is expected to grow by 5.6% until In 2013, the Bureau of Labor Statistics listed Minneapolis-St. Paul as having the lowest unemployment of large metro areas and Monster.com ranks Minneapolis-St. Paul number 4 in the nation for career advancement. With a median age of 36.3 years and a highly educated workforce, the Twin Cities economy will continue to be strong for years to come. Travel and Leisure has named Minneapolis-St. Paul as the most intelligent city in the United States. Approximately 52% of the MSP population has an associate degree or higher. Education is highly valued and educational opportunities are plentiful. There are 39 colleges and universities in the metro area alone, the largest being the University of Minnesota with 41,000 undergraduate students and approximately 14,000 graduate students. There are numerous public and private institutions, offering a wide variety of experiences. Minnesota s public schools system is one of the top educational systems in the nation. In 2007, Minnesota students earned the highest average score in the nation on the ACT exam. There are 48 public school districts represented in the Twin Cities area alone. There are also more than 200 private school options in the Minneapolis-St. Paul area. Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 12

13 LOCATION INFORMATION Twin Cities The Minneapolis-St.Paul area is easy to get to by air, road, or rail from anywhere in the world. It has one of the largest public transportation systems in the country and provides its residents with convenient and efficient transit options. As the Twin Cities continues to grow, the commitment to affordable, reliable transportation remains strong and options in transit are constantly expanding. Metro Transit is one of the country s largest transit systems. It operates an integrated network of buses, light rail and commuter trains. Metro Transit has won numerous awards for safety and top performance. In 2015, Metro Transit reached nearly 86 million rides, its highest ever. Every day, customers utilize Metro Transit buses and trains an average of 276,000 times. An electrically powered train system called light rail transit (LRT) connects downtown Minneapolis with the Minneapolis-St.Paul International Airport, the Mall of America, St. Paul and 43 other stations in between. Plans are underway to expand these lines out further to the southwest metro and northwest metro areas. The Minneapolis-St. Paul International Airport is the largest and busiest airport in the upper Midwest. It serves nearly 37,000,000 passengers a year. Centrally located in the metro area, the airport is just a minute drive into Minneapolis or St. Paul. Recently, the airport was ranked third among domestic airports in Travel and Leisure s World s Best Airports listing. Amtrak provides service in the Twin Cities area for passenger rail service throughout the country. Union Depot, located in St. Paul serves as the hub in the Twin Cities for rail travel. Two Empire Builder trains operate daily offering passengers rides throughout the United States. The American College of Sports Medicine has named the Twin Cities as the healthiest, fittest city in America. Men s Health also named Minneapolis-St. Paul as one of the nation s most active cities. The metro area is home to the Minnesota Vikings (NFL), Timberwolves (NBA), Wild (NHL), Twins (MLB), Lynx (WNBA), and United (MLS). Besides professional sports, the University of Minnesota sports teams play in the Big Ten Conference, offering many exciting opportunities to cheer on the collegiate level. The St. Paul Saints also offer another option for fun as the metro s minor league baseball team. The Twin Cities area is home to nearly 950 lakes and 137,000 acres of parkland providing beautiful natural surroundings. Residents are known to enjoy outdoor activities, such as hiking, fishing, swimming, golfing, biking and skiing. The Twin Cities area is considered to be the cultural capital of the Midwest. Next to New York City, Minneapolis-St. Paul has the highest number of theater seats per capita. Over two million theater tickets are sold each year. In addition to theater, the metro area is home to many fine museums, two full-time professional orchestras, an internationally renowned opera company, and hundreds of theatrical troupes. Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 13

14 LOCATION INFORMATION Regional Map 1488 Minnehaha Avenue West Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 14

15 LOCATION INFORMATION Location Maps Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 15

16 LOCATION INFORMATION Aerial Map Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 16

17 SECTION 3 FINANCIAL ANALYSIS Presented By: PHIL REESNES Senior Associate preesnes@michelcommercialre.com Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 17

18 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEW 2017 OPERATING STATEMENT Price $640,000 Price per Unit $91,428 CAP Rate 6.0% Total Return (yr 1) $15,805 OPERATING DATA 2017 OPERATING STATEMENT Gross Scheduled Income $59,560 Other Income $2,100 Total Scheduled Income $61,660 Gross Income $61,660 Operating Expenses $23,276 Net Operating Income $38,384 FINANCING DATA 2017 OPERATING STATEMENT Down Payment $160,000 Loan Amount $480,000 Interest Rate 4.75 Amortization 25 Years Debt Service $32,839 Debt Service Monthly $2,736 Principal Reduction (yr 1) $10,260 Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 18

19 FINANCIAL ANALYSIS Income & Expenses INCOME SUMMARY 2017 OPERATING STATEMENT PER UNIT Rental Income $59,560 $8,508 Laundry Income $2,100 $300 GROSS INCOME $61,660 $8,808 EXPENSE SUMMARY 2017 OPERATING STATEMENT PER UNIT Maintenance Repairs $1,285 $183 Trash $1,426 $203 Laundry Rental $785 $112 Water / Sewer $2,219 $317 Gas and Electric $2,431 $347 Lawn and Snow $1,810 $258 Fire Panel Monitor Fee $25 $3 Maintenance Supplies $1,031 $147 Property Insurance $2,506 $358 Property Taxes $9,758 $1,394 GROSS EXPENSES $23,276 $3,325 NET OPERATING INCOME $38,384 $5,483 Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 19

20 FINANCIAL ANALYSIS Rent Roll UNIT NUMBER UNIT BED UNIT BATH CURRENT RENT $ $ $ $ $ $ $775 Totals/Averages $5,260 Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 20

21 SECTION 4 DEMOGRAPHICS Presented By: PHIL REESNES Senior Associate preesnes@michelcommercialre.com Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 21

22 DEMOGRAPHICS Demographics Map POPULATION 1 MILE 2 MILES 3 MILES TOTAL POPULATION 18,519 69, ,712 MEDIAN AGE MEDIAN AGE (MALE) MEDIAN AGE (FEMALE) HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES TOTAL HOUSEHOLDS 7,781 29,032 62,965 # OF PERSONS PER HH AVERAGE HH INCOME $51,673 $64,788 $72,692 AVERAGE HOUSE VALUE $203,282 $253,415 $297,201 * Demographic data derived from 2010 US Census Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 22

23 SECTION 5 ADVISOR BIOS Presented By: PHIL REESNES Senior Associate preesnes@michelcommercialre.com Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 23

24 ADVISOR BIOS Biography 1 PHIL REESNES Senior Associate Professional Background Phil joined Michel Commercial Real Estate Intl. Inc. in Specializing in multifamily housing, Phil is a valued partner to both buyers and sellers in the acquisition and disposition of their investment properties, citing his knowledge of the market, accurate property valuations, quality contacts, and trusted leadership from initial contact to successful closing. Phil and his wife Lisa have three children and live in the northwestern suburbs of Minneapolis. Phil enjoys spending time with his family, traveling, and playing golf nd Avenue North Minneapolis, MN Founded in 1987, Michel Commercial Real Estate Intl. Inc. focuses solely on selling multifamily housing. The brokerage company represents both private and institutional groups, including local owners and national investors. Michel Commercial Real Estate successfully trades 1,500+ units of multifamily housing a year in the Midwest and specializes in all types of apartments, including market rate, affordable, and student housing. The list of apartment projects sold ranges from 10 to 300 units. T preesnes@michelcommercialre.com Michel Commercial Real Estate International, Inc. michelcommercialre.com Page 24