INVESTMENT OPPORTUNITY FALLINGBROOK TOWNHOMES 2211 EAST WARM SPRINGS AVENUE BOISE, IDAHO FOR ADDITIONAL INFORMATION, PLEASE CONTACT: DAVID McDONALD, CCIM, BROKER mobile: (208) 720-2000 david@icbre.com MOE THERRIEN, ASSOCIATE BROKER mobile: (208) 859-7935 moe@icbre.com
TABLE OF CONTENT INVESTMENT HIGHLIGHTS................................................... 3 PROFORMA.................................................................. 4 TOWNHOME CONDOMINIUMS................................................ 5 PHOTOGRAPHS.............................................................. 6 TOWNHOME CONDOMINIUM PLAT MAP....................................... 9 TOWNHOME CONDOMINIUM FLOOR PLANS...................................10 AERIAL MAP.................................................................12 STREET MAP.................................................................13 LOCATION OVERVIEW........................................................15 BROKER BIOGRAPHY.........................................................16
INVESTMENT HIGHLIGHTS FALLINGBROOK TOWNHOMES OFFERING PRICE: $11,500,000 48 TOWNHOME CONDOMINIUMS 2007/2016 Construction 3 Bed, 2.5 Bath 1,300-1,400 SQ FT Attached Garages New Clubhouse OFFERING DETAIL OFFERING PRICE $ 11,500,000 NUMBER OF UNITS 48 PRICE / UNIT $ 239,583 PRICE / SF GLA $ 174.25 PROFORMA NOI $ 608,600 PROFORMA CAP RATE 5.3% IN-PLACE FNMA LOAN ORIGINATION Feb, 2017 AMORTIZATION 30 Years TERM 10 Years INTEREST RATE 4.25% MONTHLY PAYMENT $ 29,024 APPROX BALANCE, JAN. 2019 $ 5,700,000 * OPPORTUNITY TO INCREASE LOAN AMOUNT THRU FNMA 2ND MORTGAGE INVESTOR PROFORMA PURCHASE $ 11,500,000 ASSUME LOAN $ 5,700,000 INVESTOR EQUITY $ 5,800,000 PROFORMA NET INCOME $ 608,600 ANNUAL MORTGAGE PMNTS $ 348,300 CASH FLOW TO EQUITY $ 260,300 YEAR 1 YIELD: To Equity 4.5% With Mortgage Paydown 6.25% 3
PROFORMA ESTIMATED PROPERTY INCOME PROJECTED ANNUAL INCOME PHASE I 20, 3 BED / 2.5 BATH TOWNHOMES, $1,500/MONTH RENT $ 360,000 (Phase I, July 2018 average rent: $1.450) PHASE II 28, 3 BED / 2.5 BATH TOWNHOMES, $1,550/MONTH RENT $ 520,800 (Phase II, July 2018 average rent: $1.481) TOTAL RENT $ 880,800 ADDITIONAL INCOME, R.U.B.S. + misc: $650/unit $ 31,200 TOTAL POTENTIAL INCOME $ 912,000 LESS VACANCY, 3% $ < 27,000> PROFORMA EFFECTIVE INCOME (2017 Actual: $771,600) $ 885,000 EXPENSE SUMMARY 2017 STABILIZED BROKER PROFORMA (48) PROFESSIONAL MANAGEMENT Combined Below $ 26,000 (3%) ON-SITE MANAGEMENT & MAINTENANCE PAYROLL $ 48,928 $ 24,000 (500/u) MAINTENANCE / TURNOVER $ 38,772 $ 38,400 (800/u) UTILITIES $ 20,686 $ 24,000 (500/u) REAL ESTATE TAXES $ 72,410 $ 124,000 Actual, 2018 INSURANCE $ 10,606 $ 10,600 (220/u) OTHER MISCELLANEOUS/ADMIN $ 19,702 $ 15,000 TOTAL EXPENSES: PROJECT $ 211,104 $ 262,000 Per Unit $ 4,398 $ 5,458 PROFORMA OPERATING INCOME $ 623,000 REPLACEMENT RESERVE $ 14,400 ($300/unit) NET OPERATING INCOME $ 608,600 4
TOWNHOME CONDOMINIUMS 48 TOWNHOME CONDOMINIUMS CONSTRUCTION: 2007 (20) / 2016 (28) 3 BEDROOM / 2.5 BATH UNITS AVERAGE SIZE: 1,375 SQ FT ATTACHED GARAGES FITNESS STUDIO PLATTED AS CONDOMINIUMS; OPERATED AS RENTAL TOWNHOMES CURRENT RENT RANGE: $1,400 $1,600 PER/MO 5
PHOTOGRAPHS 6
PHOTOGRAPHS 7
PHOTOGRAPHS 8
TOWNHOME CONDOMINIUM PLAT MAP PHASE I 2O UNITS BUILT IN 2007 PHASE II 28 UNITS, COMPLETED SPRING 2016 9
TOWNHOME CONDOMINIUM FLOOR PLANS MAIN LEVEL 10
TOWNHOME CONDOMINIUM FLOOR PLANS SECOND LEVEL 11
AERIAL MAP FALLINGBROOK TOWNHOMES 12
STREET MAP FALLINGBROOK TOWNHOMES 13
Sun Valley Nampa Twin Falls
LOCATION OVERVIEW BOISE, IDAHO ADA COUNTY ADA COUNTY POPULATION, 2014: 426,236 BOISE POPULATION, 2013: 214,237 LAND AREA, SQ MILES: 79.36 Boise is the most populous city in Idaho. It is the state s capital as well as the county seat of Ada County. Boise is located in southwestern Idaho, about 41 miles (66 km) east of the Oregon border, and 110 miles north of the Nevada border. The downtown area s elevation is 2,704 feet. Boise is the headquarters for several major companies, such as Boise Cascade LLC, Albertsons, J.R. Simplot Company, Idaho Pacific Lumber Company, Idaho Timber, WinCo Foods, Bodybuilding.com and Clearwater Analytics as well as Micron Technology, the region s largest private, locally based, publicly traded employer. Other major industries are headquartered in Boise or have large manufacturing facilities present. The state government is one of the city s largest employers. The School District includes 32 elementary schools, 8 junior high schools, 5 high schools and 2 specialty schools. Post-secondary educational options in Boise include Boise State University (BSU) and a range of technical schools. The University of Idaho (UI) and Idaho State University (ISU) each maintain a satellite campus in Boise. The city has two law schools, the Concordia University School of Law and The University of Idaho. In 2014, Time magazine listed Boise as #1 for Getting it Right in an article called, Solutions for America. 15
BROKER BIOGRAPHY REAL ESTATE PRACTICES Hard work, perseverance and integrity have made David McDonald a leader in the commercial Investment field. David specializes in consulting and brokerage of investment properties including apartments, industrial, office and retail. WORK HISTORY In a career spanning more than 21 years of real state experience in Idaho, David has established himself as a powerful force in the real estate community having successfully completed over 500 transactions. He is continually ranked among the top 1% of agents in Idaho for total sales production and was ranked number one in sales at his previous brokerage firm, Thornton Oliver Keller Commercial. In November 2002, David founded Idaho Commercial Brokerage with the simple mission of providing superior representation and investment advising services to his clients. With uncompromising integrity, concise market knowledge and extensive experience, David continues to be a leader in his field. DAVID MCDONALD Broker, CCIM (208) 720-2000 david@icbre.com Between 2006 and 2010, David developed over 50 million dollars of residential vacation property in the Sun Valley area. Growing with the changing demands of the market, David has built strong business relationships within the banking community. He has created one of the most comprehensive approaches to developing business and creative loan solutions in the currently ever-changing financial markets. PROFESSIONAL ACCREDITATION CCIM designation Vice President of the Boise Chapter of the Commercial Investment Real Estate Institute from 2001-2003 Member of the National Association of Realtors and the Commercial Investment Real Estate Institute (CCIM) PERSONAL David is a life-long Idaho resident. He grew-up in the Wood River Valley and moved to Boise in 1991. He has been married to his wife Rain for 24 years and they have three children, Gavin (21), Makena (17) and Savanna (8). David spends much of his free-time in the Sawtooth Valley where he and his family raise organic Angus cattle on the Salmon River. When he s not in the mountains, he s flying over them. In 2006 David earned his pilot s license and now spends time in the air flying his Scout in the back country of Idaho and the beaches of Mexico. 16
BROKER BIOGRAPHY WORK HISTORY Licensed Broker for 27 years Commercial Real Estate Appraiser for 38 years Idaho Commercial Brokerage, LLC (2005): Seller/Buyer Representation Investment Real Estate Brokerage. Apartments, Offices, Retail, Warehouses and Land. MSA Realty (1999-2004) - Sole Owner, Broker with two agents, Seller/Buyer Representation, Investment Real Estate Brokerage. Apartments, Office, Retail, Residential Condominiums and Land. VALBRIDGE Property Advisors (1977-present) - Managing partner, MAI designation 1982. Commercial Real Estate Appraiser Apartments, Office, Retail, Warehouse, Land and Special Use. Ada Real Estate Surveys (1987-present) Ada County Apartment Surveys, Occupancy and Rent Tracking MAURICE (MOE) THERRIEN Associate Broker Principal MAI (208) 859-7935 moe@icbre.com PROFESSIONAL DESIGNATIONS 1990-present: Licensed Real Estate Broker, State of Idaho 1990-present: Realtor Idaho Association of Realtors 1982-present: Member of the Appraisal Institute (MAI) 1992-present: Idaho Certified General Real Estate Appraiser PERSONAL BACKGROUND Boise resident since 1977 Married to wife Roxy / 2 children, Marc (35) and Michael (32) Washington State University Bachelors of Arts Degree, Business Administration- 1977 Summa Cum Laude Raised in Colfax, Washington 17