OFFERING SUMMARY WICHITA FALLS, TX
INVESTMENT OVERVIEW Holliday GP Corp. ( HFF ), a Texas licensed real estate broker, has been exclusively retained to offer an opportunity for qualified investors to purchase the fee simple interest in Parkway Villas (the Property ). The Property, located in Wichita Falls, benefits from a prominent location with exceptional schools, as well as proximity to major employment and entertainment drivers such as: Midwestern State University, Sikes Senter Mall, Weeks Park, Weeks Park Trail, and Lake Wichita. Strategically located off Southwest Parkway, the property benefits from easy access to SH-277 allowing easy access throughout the city. 41% of the units at Parkway Villas are currently on a Housing Assistant Payment (HAP) contract, providing stability and steady cash flow for the property. Additionally, the property has seen impressive income trends over the past twelve months, with 10.55% growth in effective rental income, 9.60% growth in effective gross income, and 31.53% in net operating income. INVESTMENT HIGHLIGHTS STABLE, CONSISTENT CASH FLOW THROUGH HOUSING ASSISTANT PAYMENT (HAP) CONTRACT The Property benefits from a Housing Assistant Payment (HAP) Contract that ensures strong, consistent occupancy and limited turnover. The Property stands as an ideal investment opportunity for an investor looking to deploy capital into an inflation protected vehicle that is sheltered from typical market volatility. Currently, 41% of the Property s rental income is governed by the HAP contract with mandated rent growth. Additionally, the government no longer issues HAP contracts making this a rare amenity to the Property. STRONG WICHITA FALLS LOCATION Parkway Villas is strategically located near Wichita Falls major employment and entertainment drivers. MAJOR EMPLOYMENT CENTERS INCLUDE: SHEPPARD AIR FORCE BASE $5.6 BILLION ECONOMIC IMPACT OVER 9,000 EMPLOYEES (15 MIN. DRIVE) UNITED REGIONAL HEALTHCARE SYSTEM 500+ BED HOSPITAL OVER 1,700 EMPLOYEES (10 MIN. DRIVE) KICKAPOO DOWNTOWN AIRPORT (10 MIN. DRIVE) NEARBY AIRPORTS: WICHITA FALLS MUNICIPAL AIRPORT (15 MIN. DRIVE) MAJOR RETAIL & ENTERTAINMENT CENTERS: MIDWESTERN STATE UNIVERSITY OVER 6,500 STUDENTS OVER 1,600 EMPLOYEES (8 MIN. DRIVE) KELL WEST REGIONAL HOSPITAL 41 BED HOSPITAL (7 MIN. DRIVE) SIKES SENTER MALL 670,000 SF OF RETAIL OVER 100 SPECIALTY STORES (7 MIN. DRIVE) JCPENNEY OLD NAVY DILLARD S RECENT WICHITA FALLS DEVELOPMENTS: VITRO ARCHITECTURAL GLASS RECENTLY COMPLETED THEIR $55MM FACILITY ADDED 50 JOBS TO THE IMMEDIATE AREA MIDWESTERN STATE UNIVERSITY $40MM HEALTH SCIENCE BUILDING UNDER CONSTRUCTION EXPECTED TO OPEN DECEMBER 2018 UNITED REGIONAL HEALTH CARE RECENTLY COMPLETED THEIR $28MM EMERGENCY CARE CENTER YMCA JUST COMPLETED A $14.2MM RENOVATION AND EXPANSION NEARBY QUALITY GROCERS WALMART SUPERCENTER SAM S CLUB MARKET STREET TARGET OTHER AREA RETAILERS CHILI S OLIVE GARDEN CHIPOTLE JOHNNY CARINO S APPLEBEE S CHEDDAR S SCRATCH KITCHEN NEARBY QUALITY RETAIL STARBUCKS CHICK-FIL-A FAMILY FUN ZONE HOME DEPOT CINEMARK ACADEMY SPORTS & OUTDOORS 2
PROXIMITY TO TOP LOCAL SCHOOLS Parkway Villas feeds into the top schools in the area including: FOWLER ELEMENTARY SCHOOL #1 ELEMENTARY SCHOOL IN WICHITA FALLS (0.7 MILE) -NICHE MCNEIL MIDDLE SCHOOL #1 MIDDLE SCHOOL IN WICHITA FALLS (1.9 MILES) -NICHE S.H. RIDER HIGH SCHOOL #2 HIGH SCHOOL IN WICHITA FALLS (1.0 MILE) -NICHE POTENTIAL TO CONTINUE A PROVEN VALUE-ADD PROGRAM Current Ownership has upgraded 10 units (5%) and is achieving an average of $60 rent premiums. Renovations include: New Appliances New Light Switches Modern Sinks Faux-Wood Flooring Updated Plumbing Fixtures Two-Inch Blinds New Cabinet Hardware New Ownership is awarded the opportunity to continue a proven value-add program or take the renovations to the next level by adding: Resurfaced Countertops Painted Cabinets w/ New Hardware New Stainless Steel Appliances Modern Plumbing & Lighting Fixtures Microwaves New Shower Heads Two Inch Blinds Bathtub Tile IMPRESSIVE INCOME TRENDS Over the past twelve months, the Property has experienced substantial income gains. EFFECTIVE RENTAL INCOME: 10.55% GROWTH EFFECTIVE GROSS INCOME: 9.60% GROWTH NOI: 31.53% GROWTH 3
PROPERTY DESCRIPTION ADDRESS YEAR BUILT 1982 TOTAL UNITS 192 4800 BROOKDALE DR., WICHITA FALLS, TX 76310 CURRENT OCCUPANCY 92.7% (AS OF 9/5/18) AVERAGE UNIT SIZE RENTABLE SQUARE FOOTAGE NUMBER OF BUILDINGS 26 NUMBER OF STORIES 2 LAND AREA 796 SQUARE FEET 152,800 SQUARE FEET 15.99 ACRES DENSITY 12 UNITS PER ACRE PARKING 402 TOTAL PARKING SPACES OR 2.09 SPACES/UNIT UNIT MIX SUMMARY UNIT MARKET EFFECTIVE UNITS % DESCRIPTION TYPE SF RENT PSF RENT PSF 31 16% 1 BR - 1 BA 1A10C 540 $615 $1.14 $568 $1.05 8 4% 1 BR - 1 BA 1A10S - S8 540 $615 $1.14 $624 $1.16 1 1% 1 BR - 1 BA 1A10U 540 $640 $1.19 $582 $1.08 48 25% 2 BR - 2 BA 2A20C 800 $740 $0.93 $674 $0.84 3 2% 2 BR - 2 BA 2A20R 800 $783 $0.98 $614 $0.77 52 27% 2 BR - 2 BA 2A20S - S8 800 $727 $0.91 $741 $0.93 1 1% 2 BR - 2 BA 2A20U 800 $740 $0.93 $669 $0.84 29 15% 3 BR - 2 BA 3A20C 1,000 $942 $0.94 $862 $0.86 18 9% 3 BR - 2 BA 3A20S - S8 1,000 $942 $0.94 $958 $0.96 1 1% 3 BR - 2 BA 3A20U 1,000 $966 $0.97 $966 $0.97 192 100% 796 $762 $0.96 $726 $0.91 18 % OF TENANTS HAVE HAD 3+ YEARS TENANCY 4
COMMUNITY FEATURES: Resort Style Swimming Pool Playground Tennis Court Laundry Center Covered Parking Surrounding Basketball Courts & Playgrounds Close Proximity to Schools 24-Hour Emergency Maintenance UNIT FEATURES: White Appliances Resurfaced Countertops Faux-Wood & Plush Carpet Flooring Above Oven Lighting Mini Blinds Large Walk-In Closets Washer & Dryer Connections in 3BR Ceiling Fans WICHITA FALLS ECONOMIC OVERVIEW POSITIVE JOB GROWTH FOR PAST TWO YEARS 10 TH LOWEST UNEMPLOYMENT RATE IN TEXAS TOP 10 LEAST EXPENSIVE PLACES TO LIVE NATIONWIDE WICHITA FALLS APARTMENT MARKET OVERVIEW PAST NINE QUARTERS OF POSITIVE RENT GROWTH 2Q1028 RENT GROWTH OF 3.36% LIMITED NEW SUPPLY 5
MCNEIL MIDDLE SCHOOL #1 Middle School in Wichita Falls 1.9 Miles 277 SHEPPARD AIR FORCE BASE $5.6 Billion Economic Impact 9,000+ Employees 15 Min. Drive PARKER SQUARE SHOPPING CENTER 94,513 SF Retail Cinemark, Applebees, Jason s Deli MARKET STREET STARBUCKS BIG LOTS THE HOME DEPOT SAM S CLUB WALMART SUPERCENTER UNITED REGIONAL HEALTHCARE SYSTEM 500+ Beds 1,700+ Employees 10 Min. Drive WICHITA FALLS COUNTRY CLUB LOWE'S STARBUCKS ACADEMY SPORTS OFFICE DEPOT PETSMART MICHAELS KOHL S KIWANIS PARK ROSS TJ MAXX DOLLAR TREE CHIPOTLE THE CHAMPIONS COURSE AT WEEKS PARK TARGET PETCO SIKES SENTER MALL 100+ Specialty Stores 670,000 SF Retail Dillards, Old Navy, JCPenney THE FAMILY FUN ZONE KICKAPOO DOWNTOWN AIRPORT 10 Min. Drive MIDWESTERN STATE UNIVERSITY 6,000 Students 1,600 Employees 8 Min. Drive WALGREENS HOBBY LOBBY S.H. RIDER HIGH SCHOOL #2 High School in Wichita Falls Southwest Pkwy. Fairway Blvd. Brookdale Dr. KELL WEST REGIONAL HOSPITAL 41 Beds & 288 Employees 7 Min. Drive Kingston Dr. FOWLER ELEMENTARY SCHOOL #1 Elementary School in Wichita Falls 0.7 Miles LAKE WICHITA 2,200 Acre Lake 9 Min. Drive ADDITIONAL INFORMATION If you have any questions or require additional information, please contact any of the individuals below. ROB KEY Managing Director, rkey@hfflp.com (469) 232.1926 STEVEN HAHN, JR. Director, shahn@hfflp.com (214) 692.4715 HFF NATIONAL AFFORDABLE HOUSING TEAM DOUG CHILDERS Managing Director, dchilders@hfflp.com (404) 942.3187 MICHAEL FOX Director, mfox@hfflp.com (404) 942.2216 TEDDY LEATHERMAN Analyst, tleatherman@hfflp.com (469) 232.1975 For questions regarding debt structures on this property, please contact: JEREMY SAIN Managing Director, jsain@hfflp.com (469) 232.1904 OFFER DATE: TIMING: OFFERING: TBD ALL SUBMISSIONS MUST INCLUDE SPECIFIC TERMS RELATING TO DUE DILIGENCE AND CLOSING TIME PERIODS. FREE & CLEAR 2323 Victory Avenue Ste. 1200 Dallas, TX 75219 hfflp.com T: 214.265.0880 F: 214.265.9564 2018 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, HFF ), HFF Securities L.P. and HFF Securities Limited (collectively, HFFS ) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.