Molly Barr Trails & Molly Barr Ridge Multi-Family Investment Opportunity Exceptional Student Housing at Ole Miss Offering Price $23,240,521 Cap Rate 5.75% MOLLY BARR TRAILS MOLLY BARR RIDGE
Table of Contents Disclaimer.3 Executive Summary..4 Communities.5 Financial Summary..6-7 Property Images...8 Unit Features.....9-10 Points of Interest..11 Comparable Properties...12 Public Transit/Bike & Pedestrian Paths..13 Plat Map.14 Student Population...15 About Ole Miss..16 Contacts...17 Deal Team...18 Randall Commercial Group, LLC 850 Insight Park Avenue, University, Mississippi 38677 Post Office Box 1600, Oxford, Mississippi 38655 Main Office: (662) 234-4044 Fax: (662) 655-4357 Contact: Elizabeth J. Randall President/Principal Broker Direct Office: (662) 234-4043 Email: erandall@randallcg.com
Disclaimer Page 3 Disclaimer: Molly Barr Trails and Molly Barr Ridge The information provided within this Marketing Package has been obtained from sources that are believed to be reliable, but Randall Commercial Group, LLC has not verified the information and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. The information has been prepared to provide a summary of highlights and only a preliminary level of information regarding the project. Any interested party must independently investigate the subject property, particularly from a physical, financial, tenant, and overall development standpoint. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. This information is not intended to provide full due diligence on the subject property, as it is the responsibility of the interested buyer to conduct full due diligence with their advisors. Randall Commercial Group, LLC has not performed due diligence pertaining to the physical state of the property nor the property s current or future financial performance. Furthermore, no due diligence has been performed regarding the financial condition or future plans for this location. 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. Past performance, expected or projected performance do not guarantee future performance. Property owners/buyer bear the full risk and exposure of all business, events, and liability associated with such properties. The acreage, size, and square footage of the property and improvements are estimated and should be independently verified. Randall Commercial Group, LLC 850 Insight Park Avenue, University, Mississippi 38677 Post Office Box 1600, Oxford, Mississippi 38655 Main Office: (662) 234-4044 Fax: (662) 655-4357 Contact: Elizabeth J. Randall President/Principal Broker Direct Office: (662) 234-4043 Email: erandall@randallcg.com
Executive Summary Page 4 Executive Summary: Randall Commercial Group, LLC is pleased to exclusively offer for sale this unique two complex student housing opportunity. Molly Barr Trails was built in 2012 and has experienced 100% occupancy in every year since opening. Molly Barr Ridge is a new development which was delivered August 2015. Molly Barr Trails consists of 72 units and 144 bed spaces with all units being 2 bed/2bath. Molly Barr Ridge consists of 53 units and 159 beds with all units being 3 bed/3 bath. The location is one of the closest student housing projects to the Ole Miss campus. The comparable properties have strong current occupancy and on-campus housing occupancy is extremely high. The properties are located at the beginning of the Oxford Depot Trail, which is a paved and designated walking and biking trail leading approximately 1.1 miles to campus and close to the famous Oxford Square. Molly Barr Trails will be sold with assumable, non-recourse debt at 10 year fixed 3.79% rate. Molly Barr Trails and Molly Barr Ridge are currently 100% leased for the 2015/2016 school year. Ole Miss has experienced extraordinary growth during the last five years and became the largest university in Mississippi as of this years enrollment. Purchaser may acquire both developments or just Molly Barr Ridge only. Molly Barr Trails & Molly Barr Ridge Offering Price $23,240,521 Based on 5.75% Cap Rate. 1011 & 1021 Molly Barr Road, Oxford, Mississippi Home of the University of Mississippi (Ole Miss) 125 total units; 303 beds 100% Leased as of Fall of 2015 The University of Mississippi is one of the fastest growing schools in the country. Ole Miss is a member of the Southeastern Conference (SEC)
Communities Page 5 Molly Barr Trails Address: 1021 Molly Barr Rd. Unit Layout: 2 Bedrooms/2 Bath Number of Units: 72 Units Number of Beds: 144 Beds Acres: 5.31 Acres Frontage: Approx. 510 FT Zoning: RC Parking Spaces: 150 Parks Unit Size: 1,043 SF Approx. Total SF: 76,852 (Source: Appraisal) Year Built: 2012 Public Transit: Covered Stop at Site Ingress/Egress: Molly Barr Road Amenities Swimming Pool, Fitness Center, Outdoor Grill Area, On Site Transit Stop Molly Barr Ridge Address: 1011 Molly Barr Rd. Unit Layout: 3 Bedrooms/3 Bath Number of Units: 53 Units Number of Beds: 159 Beds Acres: 3.79 Acres Frontage: Approx. 510 FT Zoning: RC Parking Spaces: 165 Parks Unit Size: 1,400 SF Approx. Total SF: 76,004 (Source: Appraisal) Year Built: 2015 Public Transit: Covered Stop at Site Ingress/Egress: Molly Barr Road Amenities Swimming Pool, Fitness Center, Outdoor Grill Area, On Site Transit Stop
Financial Summary Page 6 Item Molly Barr Trails Molly Barr Ridge Combined % Gross Potential Rent $1,022,784 $1,054,557 $2,077,361 less: Vacancy ($30,684) ($31,637) ($62,321) 3.00% plus: Other Fee Income $5,000 $5,000 $10,000 0.48% Effective Gross Income $997,100 $1,027,940 $2,025,040 Operating Expenses Advertising $14,000 $14,000 $28,000 1.38% Payroll & Burden $60,796 $46,850 $107,646 5.32% Cable & Internet Expense $55,056 $39,432 $94,488 4.67% Property Repairs $44,018 $32,402 $76,420 3.77% Landscaping $13,680 $7,500 $21,180 1.05% Management Fee $29,913 $30,838 $60,751 3.00% Office Expense $9,273 $9,273 $18,547 0.92% Pool Expense $2,883 $3,275 $6,158 0.30% Termite & Pest Control $3,381 $3,273 $6,654 0.33% Insurance $17,837 $15,644 $33,481 1.65% Security $855 $855 $1,710 0.08% Property Taxes $80,103 $77,542 $157,645 7.78% Common Electric, Water, Sewer & Trash Pickup $38,154 $37,877 $76,031 3.75% Total Operating Expenses $369,949 $318,762 $688,710 34.01% Net Operating Income $627,152 $709,178 $1,336,330 65.99%
Financial Summary Page 7 Metrics Molly Barr Trails Assumable, Non-Recourse Debt (Molly Barr Trails) Current Ave. Rental per Bed $586.75/Month Term 10 Years, Fixed Site Density 27.2 Rate 3.79% Parks per Unit 2.05 Lender Freddie Mac Furnished Units 29 Occupancy 100% Monthly Principal & Interest $26,178 Monthly Total $36,225 Units/Acre 13.5/Acre Approx. Assumption Amount (9/30/15) $5,350,091 Metrics Molly Barr Ridge Current Ave. Rental per Bed $550.75/Month Site Density 13.96 Parks per Unit 3.11 Furnished Units - Occupancy 100% Units/Acre 13.96/Acre Total Escrow Includes Tax, Ins., Cap. Ex. Reserve Term 1/1/2013 to 12/31/2022 Amortization Debt Type Notes on Financial Summary: 30-year Schedule Assumable, Non-recourse Average Molly Barr Trails rent includes an additional $100/month for the furnished units rent number reflects signed lease for August 2015. Assumption of debt for Molly Barr Trails is mandatory with property purchase and buyer must meet lender requirements for assumption approval. Molly Barr Ridge will afford the buyer the opportunity to place their own debt on the asset.
Property Images Page 8
Unit Features Page 9 Mock up of Molly Barr Trails Unit Construction Features Randall Commercial (662) 655-4357 2-bed/2-bath units 9 Foot Ceilings Simulated Wood Flooring/ Tile/Carpet Washer and Dryer Appliances Included in Units Balcony Sprinkler System Brick Veneer Exterior 1st Fl. Cementitious fiber siding 2nd Fl. Architectural Shingles Surface Parking 14 Apartment Buildings (72 units) 2 Amenity/Office Building Wood Frame Group, LLC 850 Insight Park Avenue, University, Mississippi 38677 Main Office: (662) 234-4044 Fax:
Unit Features Page 10 Molly Barr Ridge Floor Plan Construction Features 3-bed/3-bath units 9 Foot Ceilings Simulated Wood Flooring/ Tile/Carpet Washer and Dryer Appliances Included in Units Balcony Sprinkler System Brick Veneer Exterior 1st Fl. Cementitious fiber siding 2nd Fl. & 3rd Fl. Architectural Shingles Surface Parking 5 Apartment Buildings (53 units) 2 Amenity/Office Building Wood Frame
Points of Interest Page 11 Molly Barr Trails & Molly Barr Ridge Location Map Points of Interest Access At Site: O.U.T. Public Transit Stop At Site: Depot Trails To Campus 1.2 Mile Drive 1.1 Mile Bike Ride 1 Mile to Historic Square 2.5 Miles to Ole Miss Golf Course 0.5 Miles to Pat Lamar Park with Biking/Jogging Trails, Lake 0.5 Mile to Leslie Tennis Center
Comparable Properties Page 12 9 2 3 4 5 1 8 6 7 1. The Links 2. The Retreat 3. The Hub 4. Lafayette Place 5. Campus Creek 6. University Trails 7. Taylor Bend 8. The Connection 9. Highland Square
Public Transit/Bike & Pedestrian Paths Page 13 Oxford University Transit (Red Line) City of Oxford Bike & Pedestrian Map Source: City of Oxford; www.oxford.net
Plat Map Page 14 Source: http://lafayette.tscmaps.com/ms/lafayette/
Student Population Page 15 Ole Miss Student Population Growth 46.96% Student Population Growth 2008 to 2014 Ole Miss is now the largest university in Mississippi
About Ole Miss Page 16 About the University of Mississippi The University of Mississippi, a Southeastern Conference (SEC) member, is the flagship university in the state and has recently become the largest by student enrollment. Ole Miss has experienced record growth in recent years as it added approximately 33% more students during the last five years and in the last two years, the university has experienced a 55% increase in applications to the university. With approximately 40% out-of-state students, this segment has been a powerful driver of the student population s growth in recent years. The Oxford campus houses some of the largest and most popular schools/programs within the University including the: School of Law, School of Business Administration, Center for Manufacturing Excellence, School of Pharmacy, Barksdale Honors College, and the Lott Leadership Institute. Ole Miss Athletics is an enormous draw to the university, most notably the football team which is currently ranked in the top 25 in the country. Accolades 2013 Princeton Review Survey: The University of Mississippi wins the most beautiful campus in the United States Forbes names Ole Miss Top 20 Best Value Colleges Top 10 Safest Colleges & Universities by collegesafe.com Most Appealing College by Chronicle of Higher Education School of Accountancy is nationally ranked in top 10 University Medical Center named to the Best Hospitals list by U.S. News and World Report
Contacts Page 17 Contact Information Elizabeth J. Randall President/Principal Broker Telephone 662-234-4043 Email: erandall@randallcg.com Joe Pegram Vice President/Broker Telephone 662-638-0730 Email: jpegram@randallcg.com Brian P. Phillips, CCIM Associate Broker Telephone 662-638-0722 Email: bphillips@randallcg.com Website: www.randallcommercialgroup.com Main Office: 662-234-4044 Fax: 662-665-4357 About Randall Commercial Group, LLC Randall Commercial Group, LLC is a boutique commercial real estate investment brokerage and consulting firm that focuses on real estate transactional services and development opportunities throughout the southeastern United States for clients based throughout the country. Through our affiliate company, Randall Commercial Advisory, LLC, our clients are provided with real estate consulting, solutions, and financial analysis services to maximize the potential of real estate holdings and to over come challenges with their properties. We operate with a diligent and specialized ten person team that is committed to exceptional client service and outcome. Our team is structured with intentional diversity in our members educational backgrounds, professional experiences, and areas of expertise. Through proprietary research, continual education, creativity, and collaborative perseverance, we are focused on creating and preserving client wealth while building meaningful and long-term relationships with our clients. Through a myriad of brokerage and consulting services, we serve institutional and individual investor clients as well as end users on projects and properties ranging up to $50 million in estimated market value. By focusing on a range of properties types and uniquely specialized services, we are better able to accommodate diverse client interests whether a small single tenant property or a large mixed-use development. We provide a professional platform for owning and disposing of real estate assets directly. We cover a large geographical area, which allows us to operate with more opportunistic focus rather than one that is tightly bound by a single city or state. Our corporate strategy is simple: client first. Over the years, we have learned that by diligently embodying our client first mantra, we have built meaningful client relationships that provide us a thorough understanding of each client s particular circumstances and goals. This has allowed us to become more effective in client outcome and more passionate about our work. Ultimately, our clients are better served.
Deal Team Page 18 Elizabeth J. Randall, President/Principal Broker Elizabeth serves as President and Principal Broker of Randall Commercial Group, LLC. She is involved with every deal and every client in which the company is engaged. In addition to overseeing the firm s deals, she also directs the firms proprietary research and analytics efforts to identify opportunities. Elizabeth started her career in New York City as a risk analyst on a mergers and acquisitions team for private equity clients where she focused on the liability side of transactions. She worked as a stock analyst researching healthcare and consumer staples stocks, gaining experience with investment analysis and economic forecasting. Further pursuing investment research and asset allocation, she worked as a global real estate specialist focusing on publicly traded real estate investment trusts (REITs) and real estate limited partnerships, where she developed an understanding for the dynamics of global real estate and credit markets. She holds Bloomberg Financial Product Certifications in equity and fixed income. She has direct experience with real estate investment properties through her own commercial real estate holding company, Randall Real Estate Investments, LLC. In addition to her work with Randall Commercial Group, Elizabeth is an adjunct instructor of real estate and corporate finance at the University of Mississippi. She is slated to complete her CCIM designation in October of 2015. Elizabeth graduated from the University of Mississippi Cum Laude with an M.B.A. She also received a B.B.A from Ole Miss double majoring in Managerial Finance and Banking with an emphasis in Real Estate. As an undergraduate, she was the recipient of the Swayze Award from the Mississippi Young Bankers Association. She is currently pursuing a Certificate in Real Estate Investment and Finance from New York University. Joe Pegram, Vice-President/Associate Broker Joe joined Randall Commercial Group, LLC in 2009 and currently serves as vice president of the firm. His focus encompasses a range of investment real estate including development consulting for build to suits and multi-tenant retail, medical sale-leasebacks, and multifamily acquisition/dispositions. Joe s financial education and real estate experience render clients a tailored approach to their specific criteria for any investment real estate. Joe has been involved every level of a deal from sourcing opportunities for tenant s and developers to leasing up and valuing an asset or portfolio in preparation for disposition. In addition Joe represents buyers of investment real estate throughout the southeast, helping manage and grow real estate portfolios. Joe is a licensed broker in MS, TN, AL, AR, LA, MO and GA and works with clients throughout the United States. Prior to joining Randall Commercial Group, Joe resided in Washington D.C. where he worked with a commercial and residential investment and acquisition firm, managing around thirtyfive investment properties throughout the District of Columbia, Virginia, and Maryland. While in Washington, Joe also spent time working for one of the largest United States lobbying firms. Joe s was exposed to real estate investing at a young age, watching his family invest in properties in Mississippi and Tennessee. He also has direct experience with real estate investments through his own holding company, Pegram Real Estate Investments, LLC. Joe is a graduate from The University of Mississippi where he received a BBA in Banking and Finance with a minor in Real Estate. Joe was the recipient of the C.C. Eason Scholarship for excellence in the banking and finance program in 2005. After gaining work experience in California and Washington, D.C., Joe returned to The University of Mississippi and received a Master of Business Administration degree. Joe is currently pursuing his CCIM designation and a Graduate Certificate in Real Estate from New York University. Brian Phillips, CCIM, Associate Broker/Analyst Brian serves as an associate broker and investment specialist for Randall Commercial Group, LLC. His primary focus is investment analysis, acquisition and disposition of investment property, sale leaseback transactions, development consulting, site selection, and landlord & tenant representation. Brian represents a diverse list of clients ranging from investment property owners and purchasers, medical users, developers, shopping center landlords, and retailers. Brian s past brokerage experience allows him to find creative real estate solutions to meet his client s unique property and investment needs. He also helps clients to manage their real estate assets to achieve a greater return on their investment. He is licensed in the State of Mississippi and State of Louisiana. Before joining Randall Commercial Group, LLC, Brian started his commercial brokerage career with NAI Latter & Blum, a full service brokerage firm in New Orleans, LA. Brian left NAI Latter and Blum to join PMG Leasing, LLC, a family-owned commercial real estate leasing and development firm in New Orleans. Brian developed the company s leasing and marketing strategies for the company s approximately 2.5 million sq. ft. portfolio of retail, industrial and office properties leased to national, regional and local retail tenants.