EXCLUSIVE MULTIFAMILY OFFERING 4660 North 11th Street Fresno, CA 93726 60 Units Built: 1969 $4,985,000 Visit interactive offering website HeritageTH.BerkadiaREA.com Major 2014 / 2015 Renovations Student-Housing / Value-Add Opportunity Desirable Unit Mix Access to Major Employment & Education Centers a Berkshire Hathaway and Leucadia National company
THE OPPORTUNITY Heritage Townhomes, a market-rate property, was built in 1969, then renovated in 2014 / 2015. This offers a savvy long-term investor the opportunity to purchase a stable asset in East Central Fresno. Major Renovations Below Market Rents Value-Add Opportunity Desirable Unit Mix Available For New Debt Access to Major Employment and Education Centers Multifamily Market is on a Strong Growth Path Unique Student-Housing Opportunity PROPERTY DESCRIPTION Heritage Townhomes is a 60-unit, two-story garden style apartment community located in Fresno, California. The property is conveniently located less than one mile from California State University, Fresno (also known as Fresno State). Built in 1969, the property consists of six wood-frame constructed buildings with durable wood-siding exteriors and flat mansard-style roofs with composition shingles. Recent renovations in 2014 / 2015 include exterior painting, new roofs, fencing, landscaping, and blacktop. Heritage Townhomes contains an ideal unit mix comprised of two- and three-bedroom units, with an overall average unit size of 1,082 square feet. The property is nicely landscaped with manicured grass areas, mature trees, and trimmed bushes. Community amenities include: gate controlled access, one sparkling swimming pool, one central laundry facility, on-site management and security, and covered parking. Heritage Townhomes unit amenities are plentiful and feature: Fully equipped kitchens with a refrigerator, disposal, dishwasher, and a pantry Walk-in closets, ceiling fans, patios / balconies, individual tuck-under parking Two-story floor plans with vinyl hardwood flooring, two-tone paint, stainless-steel appliances, and updated cabinetry in select units HERITAGE TOWNHOMES - 60 Units
LOCATION DESCRIPTION Heritage Townhomes is located in Fresno, California, is three blocks from California State University Fresno (Fresno State). Home to the Bulldogs, Fresno State enrolls over 23,000 students. The university's enrollment has increased over 10% in the past 10 years. Additionally, The California State University system has granted Fresno State an additional 400 full-time student enrollment spots for the 2014-15 school year. Heritage Townhomes is also located near to Fashion Fair Mall, a regional mall anchored by Macy's, JCPenney, and Forever 21, as well as Riverpark Shopping Center anchored by Macy's, Kohl's, and Target. Fresno has three large public parks, two within the city limits and one in county land, just west of the City's downtown district. Woodward Park, located in North Fresno, features the Shinzen Japanese Gardens, a BMX bike course, an Amphitheater, numerous picnic areas and several miles of trails, is adjacent to the San Joaquin River Parkway. Roeding Park, near downtown Fresno, is home to the Fresno Chaffee Zoo, and Rotary Storyland and Playland. Kearney Park is the largest of the Fresno region's park system and is home to historic Kearney Mansion. The city's largest employers include Community Medical Centers, the City of Fresno, Kaiser Permanente and Saint Agnes Medical Center. HeritageTH.BerkadiaREA.com
UNIT AMENITIES Air Conditioning / Heating Refrigerator Stove / Oven Dishwasher Microwave Garbage Disposal Vinyl Hardwood Flooring* Two-Tone Paint* Stainless-Steel Appliances* Ceiling Fans Walk-In Closets Two-Story Floor Plans Patio / Balcony COMMON AREA AMENITIES Swimming Pool Gated / Controlled Access Carports and Tuck-Under Parking Laundry Room Beautiful, Mature Landscaping *In Select Units
PROPERTY SUMMARY Units 60 Built 1969 Metering Individual - Electric & Gas; Master - WSG Parking Individual Tuck-Under Spaces and Uncovered Total SF 64,900 Average SF 1,082 Site Acreage 2.35 Parcel Number 427-235-16, 17, 18, 19, 20. Type of Buildings 6, Two-Story, Garden-Style INVESTMENT SUMMARY Price $4,985,000 Price / Unit $83,083 Price / SF $76.81 Pro Forma CAP Rate 5.75% Pro Forma GRM 8.44 Proposed Loan Amount $3,489,500 Loan Payment $17,371 Down Payment $1,495,500 Interest Rate 4.35% Amortization 30 Years UNIT MIX & RENT SCHEDULE Units Type Unit SF Total SF Market Rents Current Rent Avg Market Rent /SF Current Rent /SF 1 Studio 450 450 $575 $550 $1.28 $1.22 45 2 Bed/1.5 Ba TH 1,050 47,250 $800 $746 $0.76 $0.71 9 2 Bed/2 Ba 1,050 9,450 $850 $772 $0.81 $0.74 5 3 Bed / 2.5 Ba 1,550 7,750 $995 $998 $0.64 $0.64 60 1,082 64,900 $820 $768 $0.76 $0.71 Income Berkadia Pro Forma Scheduled Market Rent $590,400 Plus: HA Income Less: Concessions ($2,400) Less: Vacancy 5.00% ($29,520) Net Rental Income $558,480 Plus: Laundry Income $7,000 Plus: Security Deposit Recovery $7,900 Plus: Late Fees $8,800 Plus: Other Income $1,200 Total Operating Income (EGI) $583,380 Expenses Per Unit Administrative $67 $4,000 Advertising & Promotion $23 $1,400 Payroll Onsite $800 $48,000 Repairs & Maintenance/Turnover $833 $50,000 Management Fee 4.00% $372 $22,339 Utilities $825 $49,500 Contracted Services $275 $16,500 New Real Estate Taxes 1.1122% $1,033 $62,000 Insurance $467 $28,000 Cap Ex Expenses/ Reserves $250 $15,000 Total Expenses $296,739 Per Unit: $4,946 Per SF: $4.57 Net Operating Income $286,641
CONTACT INFORMATION INVESTMENT SALES ROBIN C. KANE 559.761.0020 robin.kane@berkadia.com CA BRE License #00583537 FINANCING EDWARD KIM Senior Director 949.622.9252 edward.kim@berkadia.com GORDON J. LARKIN 559.761.0015 gordon.larkin@berkadia.com CA BRE License #00305847 HeritageTH.BerkadiaREA.com Fresno Office 8050 N. Palm Avenue, Suite 300 Fresno, California 93711 Phone: 559.449.0700 Fax: 559.449.1104 BerkadiaREA.com ApartmentUpdate.com Berkadia Real Estate Advisors is one of the largest real estate multifamily services firms in the country. The company serves apartment owners and investors with experienced investment sales advisors and mortgage bankers working from over 60 office locations coast to coast. Berkadia Real Estate Advisors research group is nationally renowned for their comprehensive market reports, which provide investors, lenders, owners, and real estate editors with accurate and timely multifamily market information. If you would like to receive these free reports or for more information, please visit ApartmentUpdate.com. Berkadia Real Estate Advisors makes no warranty or representation about the content of this brochure. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The presence of molds may adversely affect the property and the health of some. If you have questions or concerns regarding this issue conduct further inspections by a qualified professional. www.berkadiarea.com