FOR SALE COURTYARD APARTMENTS 32-35 INDIANA DRIVE, TOCCOA, GA 30577 PRESENTED BY: 404.442.2831 404.442.2873
COURTYARD APARTMENTS EXECUTIVE SUMMARY 3 LOCATION INFORMATION 6 FINANCIAL ANALYSIS 9 MARKET OVERVIEW 12 DEMOGRAPHICS 21 TEAM OVERVIEW 24 PRESENTED BY, Principal, Associate All materials and information received or derived from Lee & Associates - Atlanta its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither Lee & Associates - Atlanta its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. Lee & Associates - Atlanta will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Lee & Associates - Atlanta makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Lee & Associates - Atlanta does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Lee & Associates - Atlanta in compliance with all applicable fair housing and equal opportunity laws.
EXECUTIVE SUMMARY
COURTYARD APARTMENTS EXECUTIVE SUMMARY Courtyard Apartments offers sixteen units all of which are 2 bedroom/1 bathroom garden style units of approximately 825 square feet. All units offer washer and dryer connections, central heating/cooling, and the current rents include basic cable. The units are all electric and water is billed back to the tenants. This property offers tremendous upside through adding value by increasing the rental rates and completing the two additional partially completed large townhouse style units at the rear of the property (not included in the unit count). PROPERTY SUMMARY Sale Price: $640,000 Number Of Units: 16 ** Cap Rate: 9.39% PROPERTY HIGHLIGHTS 100% Occupied Sixteen 2 Bedroom/1 Bathroom Units Private Balconies Upside Potential in Rent Growth ** Value Add Potential in Bringing Two Additional Units Online for a Total of 18 Units Pro Forma Cap Rate: 8.12% NOI: $60,073 Lot Size: 1.79 Acres Building Size: 13,200 SF Year Built: 1970/1980
COURTYARD APARTMENTS UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) CURRENT RENT CURRENT RENT (PER SF) MARKET RENT 1 2 1 825 $475 $0.58 $550 2 2 1 825 $475 $0.58 $550 3 2 1 825 $475 $0.58 $550 4 2 1 825 $475 $0.58 $550 5 2 1 825 $475 $0.58 $550 6 2 1 825 $475 $0.58 $550 7 2 1 825 $475 $0.58 $550 8 2 1 825 $475 $0.58 $550 9 2 1 825 $500 $0.61 $550 10 2 1 825 $475 $0.58 $550 11 2 1 825 $475 $0.58 $550 12 2 1 825 $475 $0.58 $550 13 2 1 825 $475 $0.58 $550 14 2 1 825 $475 $0.58 $550 15 2 1 825 $475 $0.58 $550 16 2 1 825 $475 $0.58 $550 13,200 $7,625 $0.58 $8,800
LOCATION INFORMATION
MULTIFAMILY FOR SALE COURTYARD APARTMENTS tburgess@lee-associates.com D 404.442.2831 bcostas@lee-associates.com D 404.442.2873 3500 Lenox Road Atlanta, GA 30326 404.442.2810 lee-associates.com/atlanta
MULTIFAMILY FOR SALE COURTYARD APARTMENTS tburgess@lee-associates.com D 404.442.2831 bcostas@lee-associates.com D 404.442.2873 3500 Lenox Road Atlanta, GA 30326 404.442.2810 lee-associates.com/atlanta
FINANCIAL ANALYSIS
COURTYARD APARTMENTS INVESTMENT OVERVIEW 2017 FINANCIALS PRO FORMA FINANCIALS Price $640,000 $640,000 Price per Unit $40,000 $40,000 GRM - 6.1 CAP Rate 9.39% 9.31% Cash-on-Cash Return (yr 1) 14.92 % 14.66 % Total Return (yr 1) $37,882 $37,381 Debt Coverage Ratio 1.91 1.9 OPERATING DATA 2017 FINANCIALS PRO FORMA FINANCIALS Gross Scheduled Income - $105,600 Other Income - $9,600 Total Scheduled Income - $115,200 Vacancy Cost - $5,280 Gross Income $89,686 $109,920 Operating Expenses $29,613 $50,348 Net Operating Income $60,073 $59,571 Pre-Tax Cash Flow $28,645 $28,143 FINANCING DATA 2017 FINANCIALS PRO FORMA FINANCIALS Down Payment $192,000 $192,000 Loan Amount $448,000 $448,000 Debt Service $31,428 $31,428 Debt Service Monthly $2,619 $2,619 Principal Reduction (yr 1) $9,237 $9,237
COURTYARD APARTMENTS INCOME SUMMARY 2017 FINANCIALS PER SF PRO FORMA FINANCIALS PER SF GROSS INCOME $89,686 $6.79 $109,920 $8.33 EXPENSE SUMMARY 2017 FINANCIALS PER SF PRO FORMA FINANCIALS PER SF Repairs/Utilities $18,974 $1.44 $20,000 $1.52 Insurance $4,232 $0.32 $4,000 $0.30 Property Tax $6,407 $0.49 $9,653 $0.73 Management - - $7,694 $0.58 Lawn Maintenance/Pest Control - - $2,500 $0.19 Miscellaneous - - $2,500 $0.19 Reserves - - $4,000 $0.30 GROSS EXPENSES $29,613 $2.24 $50,348 $3.81 NET OPERATING INCOME $60,073 $4.55 $59,571 $4.51
MARKET OVERVIEW
COURTYARD APARTMENTS - SALE COMPS SUBJECT PROPERTY 32-35 Indiana Drive 1 196/198 STEPHENS 196/198 Stephens Dr Sale Price: $640,000 Sale Price: $670,000 Year Built: 1970 Year Built: 1988 Building SF: 13,200 SF Building SF: 18,360 SF Price PSF: $48.48 Price PSF: $36.49 No. Units: 16 No. Units 18 Price / Unit: $40,000 Price / Unit $37,222 Cap: 9.39% Closed: 07/06/2017 NOI: $60,073 2 CLEVELAND STREET APARTMENTS 3 LANIER TOWNHOMES 746 Cleveland St Gainesville, GA 30501 342 E. Shadburn Ave Buford, GA 30518 Sale Price: $500,000 Sale Price: $2,080,000 Year Built: 1987 Year Built: 1972 Building SF: 8,000 SF Building SF: 35,840 SF Price PSF: $62.50 Price PSF: $58.04 No. Units 10 No. Units 40 Price / Unit $50,000 Price / Unit $52,000 Closed: 05/25/2016 Closed: 04/05/2016
COURTYARD APARTMENTS - SALE COMPS 4 56 HICKORY 56 Hickory Ct Sale Price: Year Built: Building SF: Price PSF: No. Units Price / Unit Closed: $235,000 2007 12,060 SF $19.49 10 $23,500 02/10/2015
COURTYARD APARTMENTS - SALE COMPS SUBJECT PROPERTY PRICE PRICE/SF PRICE/UNIT # OF UNITS CLOSE Courtyard Apartments 32-35 Indiana Drive $640,000 $48.48 $40,000 16 - SALE COMPS PRICE PRICE/SF PRICE/UNIT # OF UNITS CLOSE 1 2 3 4 196/198 Stephens 196/198 Stephens Dr Cleveland Street Apartments 746 Cleveland St Gainesville, GA 30501 Lanier Townhomes 342 E. Shadburn Ave Buford, GA 30518 56 Hickory 56 Hickory Ct $670,000 $36.49 $37,222 18 07/06/2017 $500,000 $62.50 $50,000 10 05/25/2016 $2,080,000 $58.04 $52,000 40 04/05/2016 $235,000 $19.49 $23,500 10 02/10/2015 PRICE PRICE/SF PRICE/UNIT # OF UNITS CLOSE TOTALS/AVERAGES $871,250 $46.93 $44,679 19.5 -
COURTYARD APARTMENTS - SALE COMPS SUBJECT PROPERTY 32-35 Indiana Drive 1 196/198 STEPHENS 196/198 Stephens Dr 2 CLEVELAND STREET APARTMENTS 746 Cleveland St Gainesville, GA 30501 3 LANIER TOWNHOMES 342 E. Shadburn Ave Buford, GA 30518 4 56 HICKORY 56 Hickory Ct
COURTYARD APARTMENTS - LEASE COMPS SUBJECT PROPERTY 32-35 Indiana Drive 1 FALLS PARK APARTMENTS 47 Falls Park Drive Year Built: Bldg Size: Lot Size: No. Units: Avg. Rent/SF: Avg. Size: Avg. Rent: 1970 13,200 SF 1.79 AC 16 $0.58 825 SF $476 Year Built: Bldg Size: Lot Size: No. Units: Occupancy: Avg. Rent/SF Avg. Size 1983 60,730 SF 5.34 AC 48 92% $0.68 1,027 SF 2 400 POND STREET 3 457 S. POND STREET 400 S. Pond Street 457 S. Pond Street Year Built: 1980 Year Built: 1938 Bldg Size: 6,944 SF Bldg Size: 7,556 SF Lot Size: 0.65 AC Lot Size: 1.24 AC No. Units: 8 No. Units: 15 Occupancy: 100% Occupancy: 12.5% Avg. Rent/SF $0.78 Avg. Rent/SF $1.21 Avg. Size 868 SF Avg. Size 510 SF
COURTYARD APARTMENTS - LEASE COMPS 4 TOCCOA PINES 97 Prather Park Circle Year Built: Bldg Size: Lot Size: No. Units: Occupancy: Avg. Rent/SF Avg. Size 1975 83,448 SF 11.01 AC 86 93% $0.68 916 SF
COURTYARD APARTMENTS - LEASE COMPS SUBJECT PROPERTY 32-35 Indiana Drive 1 FALLS PARK APARTMENTS 2 47 Falls Park Drive 400 POND STREET 3 400 S. Pond Street 457 S. POND STREET 457 S. Pond Street 4 TOCCOA PINES 97 Prather Park Circle
COURTYARD APARTMENTS - LEASE COMPS SUBJECT PROPERTY RENT/SF AVAILABLE SF BLDG SF # OF UNITS OCCUPANCY % Courtyard Apartments 32-35 Indiana Drive $0.58 0 SF 13,200 SF 16 100% RENT COMPS RENT/SF AVAILABLE SF BLDG SF # OF UNITS OCCUPANCY % 1 2 3 4 Falls Park Apartments 47 Falls Park Drive 400 Pond Street 400 S. Pond Street 457 S. Pond Street 457 S. Pond Street Toccoa Pines 97 Prather Park Circle $0.68 49,300 SF 60,730 SF 48 92% $0.78 6,944 SF 6,944 SF 8 100% $1.21 7,650 SF 7,556 SF 15 12.5% $0.68 78,780 SF 83,448 SF 86 93% RENT/SF AVAILABLE SF BLDG SF # OF UNITS OCCUPANCY % TOTALS/AVERAGES $0.84 35,669 SF 39,670 SF 39.25 74.38%
DEMOGRAPHICS
COURTYARD APARTMENTS 1 MILE 5 MILES 10 MILES Total households 204 5,703 13,057 Total persons per hh 3.2 2.9 2.7 Average hh income $52,441 $46,918 $49,660 Average house value $75,492 $112,013 $157,734 1 MILE 5 MILES 10 MILES Total population 646 16,285 35,786 Median age 37.1 39.5 40.8 Median age (male) 36.3 38.8 40.2 Median age (female) 37.9 40.5 41.7 * Demographic data derived from 2010 US Census
COURTYARD APARTMENTS 1 Mile 5 Miles 10 Miles Total Population 646 16,285 35,786 Population Density 206 207 114 Median Age 37.1 39.5 40.8 Median Age (Male) 36.3 38.8 40.2 Median Age (Female) 37.9 40.5 41.7 Total Households 204 5,703 13,057 # of Persons Per HH 3.2 2.9 2.7 Average HH Income $52,441 $46,918 $49,660 Average House Value $75,492 $112,013 $157,734 * Demographic data derived from 2010 US Census
TEAM OVERVIEW
COURTYARD APARTMENTS TREY BURGESS Principal Profile began his professional real estate career in 2000 as a residential real property fee appraiser. In 2004, he joined Ocwen Realty Advisors as a Residential Analyst performing national portfolio valuation reviews, prefunding reviews, forensic valuation analysis, and valuation for loan servicing. In 2007, Trey joined Collateral Risk Solutions as a Review Appraiser where the primary focus of his work for the next seven years centered on national retrospective valuation for Fannie Mae and Freddie Mac. Trey maintains a Residential Real Property Appraiser license in the State of Georgia and has also held appraiser licenses in North Carolina and Tennessee. In 2008, Trey became a licensed Real Estate Salesperson in the State of Georgia affiliating with his family s real estate development and holding companies. There he assisted in the acquisition, disposition, planning, and development of existing assets. Trey acquired his Associate Broker license in 2013. 3500 Lenox Road Suite 200 Atlanta, GA 30326 T 404.442.2831 C 404.663.7143 tburgess@lee-associates.com Partial Client List Greenleaf Investment Partners Huntington Nat'l Asset Management Augsburg Investments Premier Commercial Realty Summit Investment Management Fannie Mae Freddie Mac U.S. Department of Veterans Affairs FDIC Ocwen Financial Corp. Trey joined Marcus & Millichap Real Estate Investment services in 2014 as a multifamily specialist. There he further developed and focused his financial and analytical skills allowing him to build strong advisory relationships with sellers, buyers, and developers of multifamily investment properties in the Atlanta Metro area and throughout the Southeast. Trey joined Lee & Associates in 2015 where he has continued his work specializing in both multifamily investment sales and multifamily land sales throughout the Southeast. Career History Marcus and Millichap, National Multi-Housing Group Associates - Atlanta Parker Gann & Associates, Associate Broker - Atlanta Collateral Risk Solutions, Senior Review Appraiser - Atlanta/San Diego Ocwen Realty Advisors, Residential Analyst - Atlanta/West Palm Beach Burgess Appraisals, Principal - Atlanta Affiliations Real Estate Associate Broker License - Georgia Residential Real Property Appraiser License - Georgia Atlanta Commercial Board of Realtors Education Auburn University Bachelor of Science in Business Administration - Finance Financial Management Association
COURTYARD APARTMENTS BRIAN COSTAS Associate Profile joined Lee & Associates in July 2017 as part of the Investment Sales division, primarily focusing on multifamily housing. Prior to joining Lee & Associates Brian worked in sales roles of increasing responsibility in both the medical device and hospitality industries. Brian completed law school in 2016, adding a deep knowledge of contract and property law to his prior client-serving experience, and preparing him to bring this unique set of skills and expertise to the real estate industry. Brian lives in Brookhaven with his wife and dog, and enjoys golf and traveling. Career Decca Hospitality Furnishings - Dallas, Texas Surgipro, Inc. - Atlanta, Georgia IMA Hospitality - Atlanta, Georgia 3500 Lenox Road Suite 200 Atlanta, GA 30326 T 404.442.2873 bcostas@lee-associates.com Affiliations Real Estate Salesperson License - State of Georgia Education Bachelor of Science, University of Colorado at Boulder Juris Doctor, Atlanta s John Marshall Law School