OFFERING MEMORANDUM PRICE: $240,000 ($24,000 / Unit) 10-Unit Multifamily Community 420 East Overland Drive Scottsbluff, NE 69361 Dan Goaley OMNE Partners 13340 California Street, Suite 100 11300 E 16th Omaha, Ave Aurora, NE 68154 CO 80010 Market Positioning Tel: 402-505-7736 and Pricing Analysis License: 20061147 1 1
REGIONAL MAP 420 EAST OVERLAND DRIVE
LOCAL MAP 420 EAST OVERLAND DRIVE
AERIAL PHOTO 420 EAST OVERLAND DRIVE
INVESTMENT OVERVIEW OFFERING SUMMARY Built in 1930, 420 East Overland Drive is a 10-unit apartment community located in the heart of Scottsbluff, Nebraska. The property consists of three buildings, a duplex and two fourplexes situated on a 0.15-acre corner lot. All buildings have wooden siding and pitched roofs approximately four years old. The duplex and one of the fourplexes are master metered for gas and electric and the other fourplex is individually metered for gas and electric. The current owner pays all utilities, however, a future owner should consider breaking utilities out per unit and making tenants responsible. The duplex is consists of two two-bedroom / one-bath units (600sqft). Each fourplex is consists of two one-bedroom / one-bath units (500sqft) and two two-bedroom / one-bath units (600sqft). All units have front and rear entrances with off-street parking. Seven of the ten units have been renovated with new flooring, kitchens and bathrooms. The city of Scottsbluff is located in the southwest corner of Nebraska and has a population of approximately 15,000. Scottsbluff shares its borders with the cities of Gering and Terrytown, and these, along with several smaller communities, create a micropolitan statistical area of approximately 38,000 residents. Scottsbluff is the retail hub of western Nebraska and eastern Wyoming, offering abundant lodging, dining and shopping opportunities. It is the home of the Scotts Bluff National Monument and Western Nebraska Community College. Regional West Health Services is a premier regional hospital and the area s largest employer. RWHS was recently named one of the Top 10 Rural & Community Hospitals in the United States. It is located approximately two miles from this property. INVESTMENT HIGHLIGHTS 10-Unit Apartment Complex; Seven Renovated Units Three Well-Constructed Buildings; Pitched Roofs and Wooden Siding Two Buildings Master Metered and One Individually Metered for Gas and Electric Two Miles from Regional West Medical Center Easy Access to Restaurants, Shopping, Employment and Public Transportation
EXTERIOR PHOTOS
INTERIOR PHOTOS
INTERIOR PHOTOS
FINANCIAL ANALYSIS
RENT ROLL SUMMARY As of September 2018 FINANCIAL ANALYSIS CURRENT POTENTIAL # OF AVERAGE AVERAGE AVERAGE MONTHLY AVERAGE AVERAGE MONTHLY UNIT TYPE UNITS SF RENT RENT / SF INCOME RENT RENT / SF INCOME 1 Bedroom / 1 Bath 3 500 $500 $1.00 $1,500 $600 $1.20 $1,800 2 Bedroom / 1 Bath 7 600 $575 $0.96 $4,025 $700 $1.17 $4,900 TOTALS / WEIGHTED AVGS. 10 570 $553 $0.97 $5,525 $670 $1.18 $6,700 GROSS ANNUALIZED RENTS $66,300 $80,400
OPERATING STATEMENT As of September 2018 FINANCIAL ANALYSIS INCOME CURRENT POTENTIAL PER UNIT PER SF GROSS CURRENT RENT $66,300 $80,400 $8,040 $14.11 Economic Vacancy / Below Market Rent (18,582) 28.0% (8,040) 10.0% (804) (1.41) TOTAL VACANCY ($18,582) 28.0% ($8,040) 10.0% ($804) ($1) Economic Occupancy 71.97% 90.00% EFFECTIVE GROSS INCOME $47,718 $72,360 $7,236 $12.69 EXPENSES CURRENT POTENTIAL PER UNIT PER SF Real Estate Taxes (1) 3,530 3,530 353 0.62 Insurance (2) 2,979 2,979 298 0.52 Utilities Electric (3) 8,707 8,707 871 1.53 Utilities - Water & Trash (3) 4,832 4,832 483 0.85 Utilities Gas (3) 3,774 3,774 377 0.66 Repairs & Maintenance (4) 7,500 7,500 750 1.32 TOTAL EXPENSES $31,322 $31,322 $3,132 $5.50 EXPENSES AS % OF EGI 65.6% 43.3% NET OPERATING INCOME $16,396 $41,038 $4,104 $7.20 NOTES [1] 2017 Due 2018 [2] 2018 Actual [3] Trailing 12 Month Actual [4] Market Average of $750/Unit
PRICING DETAIL FINANCIAL ANALYSIS SUMMARY PRICE $240,000 Down Payment $60,000 25% Number of Units 10 Price Per Unit $24,000 Price Per SF $42.11 Rentable SF 5,700 Lot Size 0.15 Acres Approx. Year Built 1930 RETURNS CURRENT POTENTIAL CAP RATE 6.83% 17.10% GRM 3.62 2.99 Cash-on-Cash 8.00% 49.07% Debt Coverage Ratio 1.41 3.54 FINANCING FIRST LOAN Loan Amount $180,000 Loan Type New Interest Rate 5.00% Amortization 30 Years Year Due 2028 OPERATING DATA INCOME CURRENT POTENTIAL GROSS SCHEDULED RENT $66,300 $80,400 Less: Vacancy/Deductions 28.0% $18,582 10.0% $8,040 Total Effective Rental Income $47,718 $72,360 Other Income $0 $0 Effective Gross Income $47,718 $72,360 Less: Expenses 65.6% $31,322 43.3% $31,322 NET OPERATING INCOME $16,396 $41,038 Cash Flow $16,396 $41,038 Debt Service $11,595 $11,595 Net Cash Flow After Debt Service 8.00% $4,801 49.07% $29,443 Principal Reduction $2,656 $2,792 TOTAL RETURN 12.43% $7,456 53.72% $32,234 EXPENSES CURRENT POTENTIAL Real Estate Taxes $3,530 $3,530 Insurance $2,979 $2,979 Utilities - Electric $8,707 $8,707 Utilities Water & Trash $4,832 $4,832 Utilities - Gas $3,774 $3,774 Repairs & Maintenance $7,500 $7,500 TOTAL EXPENSES $31,322 $31,322 EXPENSES / UNIT $3,132 $3,132 EXPENSES / SF $5.50 $5.50 # OF UNITS UNIT TYPE SF / UNIT SCHEDULED RENTS MARKET RENTS 3 1 Bedroom / 1 Bath 500 $500 $600 7 2 Bedroom / 1 Bath 600 $575 $700
RENT COMPARABLES
8 RENT COMPARABLES MAP 420 EAST OVERLAND DRIVE (SUBJECT) 1 2 309 W 31st St 102 E 23rd St 4 7 8 9 10 11 12 13 14 15 16 17 18 20
PROPERTY 420 EAST OVERLAND NAME DRIVE AVERAGE RENT - MULTIFAMILY RENT COMPARABLES 1 Bedroom $600 $540 $480 $420 $360 $300 $240 $180 $120 $60 $0 420 E Overland 309 W 31st St 102 E 23rd St Avg. $600 $800 $720 $640 $560 $480 $400 $320 $240 $160 $80 $0 2 Bedroom 420 E Overland 309 W 31st St Avg. $713 102 E 23rd St
PROPERTY 420 EAST OVERLAND NAME DRIVE RENT MARKETING COMPARABLES TEAM 309 W 31ST ST 309 W 31st St, Scottsbluff, NE, 69361 1 102 E 23RD ST 102 E 23rd St, Scottsbluff, NE, 69361 2 rentpropertyname1 rentpropertyname1 rentpropertyname1 Unit Type Units SF Rent Rent/SF 2 Bdr 1 Bath 4 750 $700 $0.93 Total/Avg. 4 750 $700 $0.93 YEAR BUILT: 1981 Unit Type Units SF Rent Rent/SF 1 Bdr 1 Bath 2 500 $600 $1.20 2 Bdr 1 Bath 2 650 $650-$800 $1.12 Total/Avg. 4 575 $663 $1.15 YEAR BUILT: 1942 rentpropertyaddress1 NOTES - Tenant pays electricity NOTES rentpropertyaddress1 - All utilities included - Washer/Dryer on site - $50/monthly Two Car Garage rentpropertyaddress1
PROPERTY 420 EAST OVERLAND NAME DRIVE MARKETING DEMOGRAPHICS TEAM POPULATION 1 Miles 3 Miles 5 Miles 2022 Projection Total Population 8,625 23,999 27,109 2017 Estimate Total Population 8,840 24,078 27,056 2010 Census Total Population 8,949 24,562 27,678 2000 Census Total Population 8,893 23,936 26,748 Daytime Population 2017 Estimate 10,955 29,675 31,835 HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2022 Projection Total Households 3,496 9,980 11,142 2017 Estimate Total Households 3,533 9,879 10,979 Average (Mean) Household Size 2.49 2.38 2.39 2010 Census Total Households 3,538 10,005 11,144 2000 Census Total Households 3,600 9,876 10,890 Growth 2015-2020 -1.05% 1.02% 1.48% HOUSING UNITS 1 Miles 3 Miles 5 Miles Occupied Units 2022 Projection 3,496 9,980 11,142 2017 Estimate 3,872 10,756 11,952 Owner Occupied 1,918 6,355 7,172 Renter Occupied 1,616 3,524 3,806 Vacant 339 877 974 Persons In Units 2017 Estimate Total Occupied Units 3,533 9,879 10,979 1 Person Units 33.88% 33.20% 32.36% 2 Person Units 28.93% 33.08% 33.50% 3 Person Units 13.64% 12.92% 13.13% 4 Person Units 11.66% 11.29% 11.45% 5 Person Units 6.17% 5.50% 5.56% 6+ Person Units 5.75% 4.01% 3.99% HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2017 Estimate $200,000 or More 1.01% 1.69% 1.74% $150,000 - $199,000 2.15% 4.03% 4.34% $100,000 - $149,000 6.20% 9.70% 10.00% $75,000 - $99,999 9.07% 12.69% 12.81% $50,000 - $74,999 18.77% 20.84% 21.20% $35,000 - $49,999 14.08% 14.05% 13.76% $25,000 - $34,999 14.03% 11.30% 11.12% $15,000 - $24,999 16.92% 13.09% 12.64% Under $15,000 17.77% 12.61% 12.36% Average Household Income $49,971 $62,126 $63,325 Median Household Income $35,835 $48,718 $50,123 Per Capita Income $20,128 $25,848 $26,027 POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age 2017 Estimate Total Population 8,840 24,078 27,056 Under 20 30.52% 27.53% 27.53% 20 to 34 Years 22.73% 19.08% 18.61% 35 to 39 Years 6.32% 5.77% 5.80% 40 to 49 Years 11.16% 10.55% 10.63% 50 to 64 Years 18.19% 19.33% 19.63% Age 65+ 11.08% 17.75% 17.80% Median Age 32.81 37.91 38.29 Population 25+ by Education Level 2017 Estimate Population Age 25+ 5,477 15,905 17,935 Elementary (0-8) 8.54% 5.34% 5.05% Some High School (9-11) 13.45% 8.11% 7.79% High School Graduate (12) 33.82% 31.66% 31.44% Some College (13-15) 20.58% 24.31% 24.55% Associate Degree Only 8.60% 9.29% 9.47% Bachelors Degree Only 9.16% 14.46% 14.77% Graduate Degree 4.22% 5.95% 6.07% Population by Gender 2017 Estimate Total Population 8,840 24,078 27,056 Male Population 49.35% 47.94% 48.02% Female Population 50.65% 52.06% 51.98% Source: 2017 Experian