PUERTO DEL SOL APARTMENTS

Transcription

1 APARTMENTS RIO RANCHO, NEW MEXICO Submitted By Coldwell Banker Beachside Realtors Paul Marengo (800) Ext. 103

2 CB BEACHSIDE REALTORS Paul Marengo Beach Blvd. Huntington Beach, CA Ext.103 DEEEPLY DISCOUNTED MULTIFAMILY PROPERTY IN RIO RANCHO, NEW MEXICO Paul Marengo with Coldwell Banker-Beachside Realtors is currently seeking a financial partner for the completion of the Puerto Del Sol Apartments. Puerto Del Sol was initially funded by First Community Bank, which ceased all construction lending midway through the project. The bank ultimately was closed by the FDIC and bought by US Bank, who is currently selling acquired notes at a 90% discount. The property has been valued at $750,000. The multifamily development totaling 128 units is located in the Albuquerque MSA, which is at 97% occupancy. The project is platted for 32 four plex style apartment buildings in a gated community with a pool and clubhouse. Currently, the project has 6 buildings that are 99% complete and 8 buildings that are 60%-90% complete. The remaining 18 lots are 80% complete. Our evaluation of the project is that a purchase, build-out and lease-up of the property for a long term hold and disposition will produce an optimal return on investment. The total cost of the project will be approximately $7,500,000 broken down into the following amounts: $750,000 Acquisition cost $2,250,000 Completion of the 14 buildings and infrastructure $4,500,000 Construction of the remaining 18 buildings 14.2% Cap Rate 30% IRR $10,000,000 Capital Loss available Included in this package is a rental income pro-forma on page 7 with a detailed analysis of the potential investment returns. The pro-forma is based on current market rents, and an estimated cost of completion for the project. I ve also included additional information about the local rental market. For more information, please contact me at Ext. 103 or paul@lanset.com. Thank You, Paul Marengo Coldwell Banker Beachside Realtors.

3 TABLE OF CONTENTS TABLE OF CONTENTS COVER LETTER 2 EXECUTIVE SUMMARY 4 PROJECT OVERVIEW 5 RENTAL PROFORMA 6 AERIAL PHOTOS 7 SITE PLAN 8 ELEVATIONS 9

4 EXECUTIVE SUMMARY PROJECT 32 four unit buildings, each on a fee simple lot with a communal pool and clubhouse.14 buildings are existing, ranging from 50-90% complete. The remaining 18 buildings have not yet been started. TOTAL UNITS 128 Apartment units - 32 four plex buildings 64-3bedroom 2 bath units, 64-2 bedroom 2 bath units LOCATION Rio Rancho, New Mexico; the site is located approximately ¼ mile south of the Northern & Unser intersection SITE acres MARKET $7,500,000 / $58,594 per apartment unit DEVELOPER/BUILDER Paul Marengo-Coldwell Banker Beachside Realtors LEGAL ADDRESS Lots 1 through 32 Puerto Del Sol Subdivision

5 PROJECT OVERVIEW PROJECT OVERVIEW Currently, we are developing the Puerto Del Sol Apartments, a 128 unit luxury apartment community. The project consists of 32 four unit buildings in a newly developed gated subdivision on 10 acres in Rio Rancho. The first 14 four plexes were started three years ago, and are near the completion of construction. The remaining 18 four plexes have not been started. Onsite property management will conduct leasing and property maintenance operations from the community s clubhouse, which will house a fitness center that opens to a heated outdoor swimming pool. Puerto Del Sol is located minutes from major commercial and employment centers, both Rio Rancho middle and high schools, the Intel facility, and new a hospital located in the Rio Rancho City Centre. In 2009 Hewlett-Packard Co. broke ground on its new technical support and customer service facility just minutes from Puerto Del Sol. The threestory building, near the master planned downtown of Rio Rancho, will be 218,000 square feet in size and currently employs approximately 600 fulltime employees, with plans to hire an additional 750 people by the end of MARKET This 10 acre property will be developed and built as 32 four unit buildings to satisfy the demand for multifamily property in the Rio Rancho market. Rio Rancho s population growth continues to outpace the nation, increasing by 4.6% over the last year, and economists predict this trend to continue in the future. It is estimated that Rio Rancho will reach a population of nearly 100,000 people by 2015; putting further pressure on the demand for multifamily housing in the area. Currently, The Albuquerque / Rio Rancho area has a severe shortage of apartment units, and an occupancy rate of 97%. With no other competing multifamily properties being constructed in the city of Rio Rancho, demand far exceeds supply.

6 RENTAL PROFORMA

7 AERIAL PHOTOS RIO RANCHO AERIAL P U E R T O D E L S O L A E R I A L

8 SITE PLAN SITE PLAN * Existing Buildings are highlighted in yellow.

9 ELEVATIONS FRONT ELEVATION REAR ELEVATION

10 ELEVATIONS STREETSCAPE STREETSCAPE