Investment Property Offering 405 N. 40th Ave. A 45 Unit Apartment Complex Located in Phoenix, Arizona Bill Hahn Senior Vice President 602 222 5105 Direct 602 418 9578 Mobile bill.hahn@colliers.com Jeffrey Sherman Senior Associate 602 222 5109 Direct 602 694 1127 Mobile jeffrey.sherman@colliers.com Trevor Koskovich Senior Associate 602 222 5145 Direct 480 227 7420 - Mobile trevor.koskovich@colliers.com
Table of Contents I Executive Summary 1 II Property Photos 3 III Location Maps Aerial Far 4 Aerial Close 5 Parcel Map 6 IV Financial Summary 7 V Comparables Rent 8 Sales 11 VII Appendix Legal Disclaimer www.colliers.com/phoenix
Desert Campus Meadowlark Lofts 1116 405 East N. 40th Lemon Avenue Street Phoenix, Tempe, AZ Executive Summary Location Phoenix, Arizona 85009 List Price $750,000 Price Per Unit $16,667 Price Per Square Foot $25.64 Total Units 45 Building Square Footage 29,250 Number of Buildings 8 Land Acres 3.04 Cross Street Market Sub Market Van Buren St. & 43rd Ave. Phoenix Southwest Phoenix Year Built 1971 Building Class Location Class HVAC C C Individual Tax Parcel Number 106-03-004, -009, -019B Foundation Type Concrete Slab Number of Stories 1 EXECUTIVE SUMMARY COLLIERS INTERNATIONAL 1
Executive Summary AREA DESCRIPTION The Desert Meadowlark is located at 405 N. 40th Ave. in Phoenix, Arizona. It is situated between major street ways Van Buren St. and Roosevelt St. The property is just south of Interstate 10 (Papago Fwy.), a major arterial freeway that connects Interstate 17 and highway 60. These highways give residents of Desert Meadowlark easy access to downtown Phoenix and all other parts of the metropolitan area. The area immediately surrounding Desert Meadowlark contains a variety of schools, multifamily and single-family residential properties, retail, and light industrial developments. Several neighborhood shopping centers, parks, churches, and public facilities are located within a mile of the property. Phoenix Community College and Grand Canyon University are all located within easy driving distance of Desert Meadowlark. The property is also located near Desert Sky Mall, a major regional shopping center in Arizona managed by Westcor, provides residents many opportunities for shopping and employment. PROPERTY DESCRIPTION Desert Meadowlark is a single story community built in 1971, comprised of 45 units. All units contain two bedrooms/ two bathrooms. The eight buildings are constructed of block. Amenities include a coin operated washer and dryer facility. The property is individually metered for electricity and master metered for water. The property owner is responsible for the cost of water, sewer, and trash pickup, and the residents are responsible for the cost of electricity in their units, including the cost of heating and air conditioning. Partially covered parking is available to residents totaling to 56 spaces. Desert Meadowlark is constructed on three rectangular parcels with a net site size of 3.04 acres, providing a net density of 14.8 units per acre. EXECUTIVE SUMMARY COLLIERS INTERNATIONAL 2
Property Photos PROPERTY PHOTOS COLLIERS INTERNATIONAL 3
Aerial - Far LOCATION MAPS COLLIERS INTERNATIONAL 4
Aerial - Close LOCATION MAPS COLLIERS INTERNATIONAL 5
Parcel Map Desert Meadowlark LOCATION MAPS COLLIERS INTERNATIONAL 6
Projected Financial Summary Note: All income and expense items listed below are estimates only Year Built 1971 Total Units Total Square Feet 45 29,250 Estimated Current Units Type Sq. Ft. Actual Rent 45 2BD/2BA 625 $500 $ 22,500 Monthly Scheduled Gross Rent $ 22,500 Annual Scheduled Gross Rent $ 270,000 Physical Vacancy (3 Units) 15.0% $ (40,500) Economic Vacancy* 10.0% $ (27,000) *credit loss, turnover, etc. Total Vacancy 25.0% $ (67,500) Net Rental Income $ 202,500 Gross Operating Income $ 202,500 OPERATING EXPENSES Property Taxes *Actual 2009 $ 21,510 Insurance *Estimated At $200/unit $ 9,000 Maintenance *Estimated At $500/unit $ 22,500 Repairs *Estimated At $400/unit $ 18,000 Electricity *Estimated At $150/unit $ 6,750 Gas *Estimated At $25/unit $ 1,125 Sewer and Water *Estimated At $300/unit $ 13,500 Trash *Estimated At $100/unit $ 4,500 Payroll *Estimated At $500/Unit $ 22,500 Management Fee *Estimated To be 6% of Collected Rent $ 12,150 Administrative Expenses *Estimated At $115/unit $ 5,175 Capital Reserve *Estimated At $250/unit $ 11,250 Total Operating Expenses $ 147,960 Operating Cost Per Unit $ 3,288 Operating Cost Per Sq Ft $ 5.06 Net Operating Income $ 54,540 FINANCIAL SUMMARY COLLIERS INTERNATIONAL 7
Rent Comparables Adjusted Monthly Rent NOTE: Adjusted Monthly Rent is the effective rent received by the property owner after adjusting for any rental concessions, on an assumed one-year lease. By way of example, if the quoted market rent is $600 per month, and one month free with a twelve-month lease, the Adjusted Monthly Rent is $550 ( ($600 X 11) / 12) Property Location Year Built % Vacant Unit Mix Total Units S.F. Monthly Rent Monthly Rent / S.F. Adjusted Rent Adjusted Rent / S.F. Photo Poco Jardin 1983 10% 1 Bed, 1 Bath 31 592 $459 $0.78 $421 $0.71 4120 W. Osborn Road Concessions: First 2 Bed, 1 Bath 30 703 $550 $0.78 $504 $0.72 85019 months rent free 2 Bed, 2 Bath 16 855 $611 $0.71 $560 $0.65 Totals/Averages 77 690 $526 $0.75 $482 $0.69 Vista del Prado 1976 10% 2 Bed, 1 Bath 72 856 $550 $0.64 $504 $0.59 2529 W. Campbell Avenue Concessions: $225 Totals/Averages 72 856 $550 $0.64 $504 $0.59 85017 move-in Sun West 1964 10% 2 Bed, 1 Bath 20 750 $498 $0.66 $498 $0.66 2501 W. Elm Street Concessions: None Totals/Averages 20 750 $498 $0.66 $498 $0.66 85017 El Paraiso 1982 12% 1 Bed, 1 Bath 12 575 $399 $0.69 $399 $0.69 2740 W. Medlock Drive Concessions: None 2 Bed, 1 Bath 28 775 $499 $0.64 $499 $0.64 85017 Totals/Averages 40 715 $469 $0.67 $469 $0.67 Averages 1976 11% The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. COMPARABLES COLLIERS INTERNATIONAL 8
Black Central Ave 7th St Desert Meadowlark Rent Comparable Map 60 Bethany Home Rd Grand Ave Grand Can yon College 5 19th Ave C g 7th Ave 27th Ave 4 3 Phoenix Colle Thomas Rd 2 Phoenix Community College Osborn Rd Encanto Blvd Mcdowell Rd Grand Ave 1 PHOENIX State Capitol Buckeye Rd Va W 1. Subject Property Desert Meadowlark 405 N. 40th Ave. 2 Poco Jardin 4120 W. Osborn Road 3 Vista Del Prado 2529 W. Campbell Ave. 4 Sun West 2501 W. Elm Street 5 El Paraiso 2740 W. Medlock Drive COMPARABLES COLLIERS INTERNATIONAL 9
Subject Property Comparison Note - Adjusted Monthly Rent is the effective rent received by the property owner after adjusting for any rental concessions, on an assumed one-year lease. By way of example, if the quoted market rent is $600 per month, and one month is free with a twelve-month lease, the Adjusted Monthly Rent is $550 ( ($600 X 11) / 12 ). Unit Mix Total Units S.F. Monthly Rent Monthly Rent / S.F. Adjusted Monthly Rent Adjusted Rent / S.F. 2 Bed, 2 Bath 45 625 $ 408 $ 0.65 $ 408 $ 0.65 Totals/Averages 45 625 $ 408 $ 0.65 $ 408 $ 0.65 Comparables Property Summary Unit Mix Total Units S.F. Monthly Rent Monthly Rent / S.F. Adjusted Monthly Rent Adjusted Rent / S.F. 1 Bed, 1 Bath 43 587 $ 442 $ 0.75 $ 415 $ 0.71 2 Bed, 1 Bath 150 796 $ 534 $ 0.67 $ 502 $ 0.63 2 Bed, 2 Bath 16 855 $ 611 $ 0.71 $ 560 $ 0.65 Totals/Averages 209 746 $ 529 $ 0.71 $ 492 $ 0.66 MARKET SYNOPSIS COLLIERS INTERNATIONAL 10
Sales Comparables Property Location Year Built # Units Unit Mix Sales Price Price/ Unit Price/SF Close of Escrow Property Photograph Casa Paradise 1964 34 13 1BD/1BA $ 544,000 $16,000 $21.41 5/14/2009 2521 W. Elm St. 22 2BD/1BA 85017 Casa Blanca 1985 21 11 1BD/1BA $ 410,000 $19,524 $31.10 6/1/2009 3131 N Black Canyon Hwy 10 2BD/1BA 85015 The Promenade 1985 182 182 2BD/1BA $ 3,000,000 $16,484 $21.98 9/22/2009 2330-2332 W. Glenrosa Ave. 85015 Silver Oaks 1959 36 26 2BD/1BA $ 750,000 $20,833 $24.38 9/22/2009 5510 N. 35th Ave. 10 3BD/2BA Sunny Haven 1982 22 10 1BD/1BA $ 450,000 $20,455 $31.25 10/23/2009 806 E. Carol Ave. 12 2BD/1BA 85020 Lincoln Village 1980 115 55 1BD/1BA $ 2,150,000 $18,696 $26.45 10/30/2009 2211 W. Campbell Ave. 20 2BD/1BA 85015 40 2BD/2BA AVERAGES 1976 68 $ 1,217,333 $ 18,665 $ 26.09 COMPARABLES COLLIERS INTERNATIONAL 11
9th Ave 43rd Ave Black Canyon Frwy Central Ave 7th St 16th St 20th St Desert Meadowlark Sales Comparables Map 59th Av e Community College 63rd Ave 51st Ave Northern Ave Glendale Ave 60 35th Ave Bethany Home Rd Grand Ave Grand Can yon College 5 1 4 27th Ave 2 7 4 19th Ave Dunlap Ave 2 Phoenix Junior College 7th Ave 6 Phoenix Junior College Piestewa Frwy 24th St 24th 51 Thomas Rd 3 Phoenix Community College Osborn Rd Encanto Blvd Mcdowell Rd 1 PHOENIX Grand Ave State Capitol 10 Van Buren St America W 1. Subject Property Desert Meadowlark 405 N. 40th Ave. 2 Casa Paradise 2521 W. Elm Street 3 Casa Blanca 3131 N. Black Canyon Hwy 6 Sunny Haven 806 E. Carol Ave. 7 Lincoln Village 2210 W. Campbell Ave. 4 The Promenade 2330-2332 W. Glenrosa Ave. 5 Silver Oaks 5510 N. 35th Ave. COMPARABLES COLLIERS INTERNATIONAL 13
Colliers International Legal Disclaimer This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. Colliers International is a worldwide affiliation of independently owned and operated companies. This publication is the copyrighted property of Colliers International and /or its licensor(s). 2009. All rights reserved.